Labor and the Coalition are engaging in the most reckless election campaign in living memory, according to economists who warn the major parties’ policies will inflate house prices, damage the budget and make the tax system worse.

Prime Minister Anthony Albanese and Opposition Leader Peter Dutton unveiled almost $24 billion combined in new spending on Sunday at their respective campaign launches as the leaders compete to woo swinging voters in an increasingly costly election.

Economists warned that Dutton’s mortgage deductibility policy and Labor’s 5 per cent home deposit policy would make Australia’s housing affordability problems worse. Former Reserve Bank of Australia governor Ian Macfarlane said both policies would push up demand for housing and cause prices to rise.

“They are stoking up the demand side, which will mainly show up in higher prices,” .

The major parties have cumulatively announced at least $105 billion in policies since the campaign kicked off, according to analysis by the Financial Review. UNSW economics professor Richard Holden said the federal election campaign was “fiscally reckless on an unprecedented scale”.

“We have $10 billion here and $10 billion there promises on both sides being bandied around as if they’re rounding error,”

The question Economists ask is Can both manage Demand and supply.

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