The K-Shaped Recovery: economy finely poised as JobKeeper cliff looms

Josh Frydenberg has been busy. The Treasurer Kicked off the week with an oped in Rupert Murdoch’s The Australian, or rather a panegyric to the brilliance of his own treasurership. Then on to a blistering volley of appearances at Sky News, Nine, Seven, ABC, 2GB’s Ben Fordham, Neil Mitchell and even Moonman in the Morning on MMM.

Things were going well Josh told Moonman. Indeed, Australia is surviving the pandemic well, at least compared with other countries, and is emerging from the economic malaise faster than most. Yet crunch time looms – at the end of next month when Josh ratchets JobSeeker back to poverty levels and the gargantuan $80bn business subsidy, JobKeeper, is turned off.

Things are bouncing nicely for the economy, yet…