Deputy Liberal Leader Jane Hume said the Labor government has used an "out of control" migration program to cover up its economic failings [1].
The accusation highlights a growing political divide over whether population growth is a sustainable driver of national prosperity or a temporary mask for stagnant productivity.
Speaking in an interview with News24, Hume said the government is utilizing increased migration to artificially prop up economic growth [1]. She said this strategy ignores underlying economic shortcomings and does not constitute a viable long-term plan for the country [1].
"Simply increasing the number of migrants in order to prop up economic growth, that’s not an economic plan, that’s a Ponzi scheme," Hume said [1].
Instead of relying on population increases, Hume said the government should focus on boosting productivity to drive growth [1]. She identified several key levers for this shift, including the reduction of taxes, and the lowering of energy prices [1].
She also called for the reduction of red tape, and the adoption of new technology to improve efficiency across the economy [1].
"We want to see productivity prop up economic growth, and the only way you do that is through lowering taxes, lowering energy prices, cutting red tape, adopting new technology," Hume said [1].
Hume's comments come as the opposition continues to challenge the government's handling of the economy and its approach to immigration levels [1].
“"Simply increasing the number of migrants in order to prop up economic growth, that’s not an economic plan, that’s a Ponzi scheme."”
This critique reflects a broader debate regarding 'per capita' versus 'aggregate' GDP growth. While high migration can increase the total size of the economy, it can mask a decline in the standard of living for individuals if productivity does not keep pace with population growth. By framing the policy as a 'Ponzi scheme,' the Liberal Party is positioning itself to campaign on supply-side economic reforms—such as deregulation and tax cuts—rather than demographic expansion.


