The most striking feature of Tuesday’s 2022-23 federal budget is how well the Australian economy is performing. Whereas two years ago we were facing a catastrophe, the outlook now is rosy and enviable. We have passed out of the pandemic storm into calm waters very quickly. The unemployment rate is heading below four percent—its lowest level since 1974. GDP is now well-above pre-pandemic levels, in contrast to most other leading economies, and poised for steady growth. A stronger economy and high commodity prices are boosting government revenues. So gross debt peaks at 45 percent of GDP instead of the 52 percent expected last year. The largest worry is inflation; which is high and rising. However, this reflects high international commodity prices and pandemic-induced shortages. As those disruptions pass, the outlook is for inflation to return to within the Reserve Bank of Australia’s target range of two to three percent. In …