Plain Speaking

Clear and informed plain speaking is what we need - and what you will get if you read Bill Mitchell - here.

Here is an extract to set the scene.

"Today’s economic data releases in Australia confirmed what all the previous data is telling us – the economy is slowing and may even be going backwards. The latest estimates of tax revenue are showing that the Federal government will receive much less this financial year than they forecast in the last Budget (May 2010). It is thus no surprise that the estimated deficit has been revised up. A responsible government, entrusted with the duty to ensure public welfare is advanced (via employment growth etc), would see these developments as a sign that they should craft further fiscal stimulus initiatives to arrest the slowdown. What does the Australian government propose? Even harsher spending cuts than previously hinted at. Why? Because they are going to pursue a budget surplus by 2012-13 by hook or by crook. It is an obsession. Is that responsible? No, it is mindless vandalism and an abrogation of prudent fiscal management. Their excuse? We are booming and at full employment. Reality check – back to the data – 12 per cent labour underutilisation, retail sales contracting etc. Their ideological blinkers have led them into denial".

But apparently this way of thinking or speaking doesn’t seem to be very prevalent in Canberra. Or at least within our political class. Surely someone - on the backbench at least is a little concerned.

You would imagine that our Government would be keen to keep the Australian miracle economy alive - but they seem to be too busy worrying about what Monsignori Abbott will say and do in response to their upcoming budget - than be concerned about dealing with the actual economy.

It's a particularly weak Government that manages to get itself into a p*ssing contest over when the budget will be back in surplus. A contest that it can only lose because no matter what it says or does - the Opposition will do it better or faster or do more of it. All without having to prove a thing.