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Mathias Cormann, former Australian finance minister and current OECD secretary general, has warned against adopting populist economic policies to tackle the cost of living. Source: theguardian.com.
Populist Policies Won’t Solve Economic Challenges
Cormann will speak at the Centre for Independent Studies. He will argue that copying populist parties like One Nation won’t ease the cost of living or improve productivity.
He warns that mainstream parties adopting policies such as migration caps or tariffs risk losing voters to both the original populist movement and to centre-left or centre-right alternatives.
What Populists Are Offering
One Nation gained strong support after the 2025 federal election. Its primary vote reached 25%, above the Coalition’s 22%, according to the latest Guardian Essential poll.
Its platform centers on anti-immigration messaging. This resonates with voters worried about housing and energy costs.
Why Migration Policies Fall Short
Research shows that in regions with more migrants, Australian-born workers see faster employment growth—not slower.
Wages remain stable. Migration helps maintain a growing working-age population as the country ages.
Without migration, Australia’s working-age population would shrink. This contradicts promises to spend more on health, aged care, and defence.
Productivity as the Real Solution
Cormann insists only long-term growth through productivity can lower the cost of living.
He says there is no shortcut—no policy like tariffs or migration caps—can deliver lasting relief.
A growing economy that produces more, competes harder, and grows faster than its costs is the only sustainable path.
Any policy claiming a quicker fix ultimately leads to a poorer country.
What About Tariffs?
Cormann rejects proposals like those from One Nation to impose tariffs on exports.
Such measures could raise costs for farmers, miners, and builders. They don’t fix inflation or supply shortages.
These policies may offer short-term gains but damage long-term affordability and stability.
What This Means for Voters
Cormann urges parties to focus on real outcomes: affordable housing, real wage growth, and lower energy prices.
When voters see these issues addressed through productivity, the populist tide will naturally fade.
‘Mimic the populists,’ he says, ‘and you simply confirm that they were right all along.’
He concludes that defeating populism means solving the problems it highlights.
While some Australians now say migration is too high—often citing housing—Cormann stresses that the solution lies in better housing supply, infrastructure, and services, not in restricting migration.
He does not dismiss public concerns. He insists they must be met with economic solutions, not political shortcuts.
