Public demand
Understanding Public demand in Australia
In order for there to be an economic resurrection, there is a need for there to be an increase in demand by the general public for essentials. For instance, when there is a great public demand for dwelling as seen with the current housing crisis, it will lead to more infrastructure. You would also note that when the demand evenly matches the supply, the economy would ultimately be the beneficiary of such growth.
The growth in public demand would also lead the government to put in place policies that would only advance the economy, but it will also promote the welfare of the people. As a result of the growth in public demand, the Australian government also put in place the National Disability Insurance Scheme.
Again, the budget of the government would also be surplus in years to come as a result of the revenue generated. The revenue generated as a result of the public consumption increasing would also be pumped back to fund infrastructure, which would help dwelling investments.
Also, according to economists, regardless of the growth in public demand, additional revenues would still be needed. This would also follow, mainly if the employment keeps increasing and the revenue generated from mining stays on the high side. However, there would still be certain benefits, such as paying off some employers’ wages and salary by stamp duty incomes. This would resolve the housing investment problem in some areas of Australia. However, public demand and investment would continue to be on the high side for nothing less than two to four years. During this period, the economy would be undergoing steady growth until it normalises.
With the increase in public demand, public spending has become synonymous with an increase in tax revenue. This is due to the fact that the government sustains the extravagant lifestyle of meeting the peoples’ demand and as such, fat taxes are required from the people, businesses, and companies, among others. For instance, in the past couple of months, the government added another expenditure that would in the long event of things affect public demand in order to react appropriately to the bushfire.
The importance of public demand can be seen by its increase from 1.5 per cent to 5 per cent towards the end of 2020. Again, it is believed that public demand would significantly affect the internal final consumption growth in the coming years. For instance, the Australian government in its budget for 2020/201 emphasised growth in public demand. This public demand is motivated by expenditures such as health care, the policy of National Disability Insurance Scheme, Care for the Aged among other unique expenditures.
Infrastructure expenditure would have a significant role in providing aid to grow public investment in years to come. The onus keeps on the government to uphold the various policies it has put in place to lead to economic growth.