Jacqui Lambie has criticised the Albanese government for not doing enough to help Australians struggling with the cost of living.
The independent senator, known for her on-air outbursts, was enraged after a studio audience member asked her a question about inflation on ABC’s Q+A show on Monday night.
She sat on a five-member panel alongside fellow politicians NDIS Minister Bill Shorten and Shadow Finance Minister Senator Jane Hume.
Nobel Prize-winning economist Joseph Stiglitz and outgoing editor-in-chief of the Australian Financial Review, Michael Stutchbury, also took part in the debate.
The first question he put to Mr Shorten was from Megan, a mother of three from Canberra, asking if the cost of living was affecting the family budget.
He also asked whether the spending was having the opposite effect of lowering interest rates.
The Minister rejected the suggestion that increased public spending had made life more difficult for households.
“I don’t think so. The government’s net additional spending was $10 billion, and while that’s a lot of extra money, it’s going towards Medicare services and tax cuts,” Shorten began.
Bill Shorten’s comments on inflation and the cost of living prompted a strong response from Senator Jacqui Lambie in the question and answer session.
“So I think overall we’re trying to get to a better situation.”
His comments prompted a furious outburst from Senator Lambie, who said spending money to help Australians struggling to put food on the table would not increase inflation.
“Frankly, when it comes to bread and milk and you can no longer get three litres of milk or bread for less than ten dollars, people who are having a hard time are trying to give them a little more money for their bills,” he said.
“I don’t think that’s going to move things forward. Seriously, I don’t think so.”
Senator Lambie said the cost of being able to meet necessities such as paying an electricity bill were not “luxury items”.
She said it was “nonsense” to suggest that increased financial assistance to help put “more rest and milk” on the table would drive up commodity prices.
“There are too many poor people. The problem is not giving them a little extra money,” he said.
Senator Hume claimed Megan was “poorer” because of higher inflation, interest rates and taxes over the past two years.
He said the Albanese government had spent an additional $315 million since Labor was elected to power two years ago.
“That’s why it’s taking so long to get inflation under control, but we have to do it because it eats into savings, erodes purchasing power and reduces living standards,” he said.
Cost of living and inflation were a major topic of discussion on Monday night’s episode of Q+A
Spending money to help Australians struggling to put food on the table would not increase inflation, Senator Jacqui Lambie says
Professor Stiglitz agreed with Senator Lambie, saying that increased government spending had created shortages in the supply chain.
The Australian dollar has been hit by 13 consecutive interest rate hikes since May 2022.
The Reserve Bank opted to keep rates on hold at 4.35 percent for the seventh consecutive time at its latest policy meeting on Wednesday.
Inflation rose to a whopping 7.8 percent in December 2022, but the current consumer price index (CPI) stands at a rate of 3.8 percent.
The Reserve Bank updated its forecasts this week, predicting headline inflation will remain high at 3.7 percent by December 2025.
CPI is not expected to fall within the RBA’s 2 to 3 percent target range until December 2026.
Senator Hume also weighed in, saying Megan was “poorer” because of higher inflation, interest rates and taxes over the past two years.
Ms Hume said the government has spent an additional $315 million since taking office.
‘That’s why it’s taking so long to get inflation under control, but we have to do it because it eats away at savings, erodes purchasing power and reduces living standards,’ he said.
Professor Stiglitz agreed with Senator Lambie, saying that increased government spending had created shortages in the supply chain.
