Gina Rinehart and Elon Musk Discuss Future Economy in Private Meeting

Australia’s wealthiest individual, Gina Rinehart, recently held a private meeting with Elon Musk in Florida, according to reports. Rinehart, who serves as the chair of Hancock Prospecting with an estimated net worth of $30 billion, confirmed the encounter in a statement to the Australian Financial Review this week.

The two billionaires discussed a variety of topics, including the efficiency of government operations and the issue of free speech. Elon Musk, whose wealth is estimated to exceed $466 billion, recently announced his plans to lead a new Department of Government Efficiency, abbreviated as DOGE.

Rinehart expressed her support for Musk’s initiative, suggesting that Australia could benefit from a similar approach. She commended Musk’s efforts to improve government efficiency, acknowledging that both the United States and Australia are struggling with rising debts, increasing taxes, and inflationary pressures. She emphasized that reducing government waste, as advocated by Musk, was crucial in addressing these economic challenges.

Her comments came amid data showing that nearly 20% of Australian workers are employed in the public sector, with wage growth in this area surpassing that of the private sector. This increase in public sector employment has driven government spending to a record 27.3% of GDP as of the June quarter.

While inflation figures for the September quarter showed a decrease to a three-year low of 2.8%, underlying inflation—which excludes volatile price changes—remained above the Reserve Bank of Australia’s target at 3.5%. Shadow Finance Minister Jane Hume highlighted that public sector spending at both state and federal levels is currently the “biggest driver” of inflation in Australia. She pointed out that this concern is not exclusive to her party, noting that the International Monetary Fund (IMF) and the Reserve Bank have also identified public sector spending as a key factor. Hume emphasized the need for a comprehensive national response to address what she described as a national crisis.

According to data from the Australian Bureau of Statistics (ABS), Australia had 2,517,900 public sector employees as of June, with 365,400 employed by the federal government, 1,939,100 by state governments, and 213,500 in local councils. These figures indicate that public sector employees represent over 17% of the total working population, which stood at 14,402,500 in the same month.

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