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How strong is the Australian economy?
06-11-2019, 01:21 PM
Post: #1
How strong is the Australian economy?
Not as strong as the Government would have us believe, apparently.

This piece in the Australian is written by the Shadow Treasurer so it must be read with that in mind but it does raise some points that need to be examined. It will be some time before Parliament sits and even then, Question Time is not likely to be used to counter these challenges in any detailed way.

For what it is worth, here it is …

Quote:Coalition at the wheel of a ship going nowhere
Jim Chalmers

When Josh Frydenberg sat down with his G20 counterparts in Fukuoka, Japan, last weekend, they would have been briefed on the weakened state of our economy. Australian domestic data from the past week has been confronting but not surprising.

Wednesday’s feeble national accounts and the Reserve Bank’s decision to cut interest rates to new record lows on Tuesday shone a big spotlight on three facts: our economy is floundering, middle Australia is struggling and the government has no plan to turn things around.

Not since the global financial crisis has national economic growth been as meagre as it has been the past year.

And the RBA’s cash rate is now less than half what it was back then, a decade ago.

We’re in our third consecutive quarter of a so-called per capita recession — the longest period since the early 1980s downturn.

The underlying and neglected challenges in our economy fall under two broad categories.

First, in the part of the economy that matters most to families around the kitchen table, wages are stagnant, household consumption is weak, household saving is low and work is insecure.

RBA governor Philip Lowe pointed to household consumption as the “main domestic uncertainty” when the RBA board lowered the cash rate.

In the absence of wages growth, with cuts to penalty rates and rising household expenses such as electricity and childcare, more needs to be done to complement interest rate cuts to put more back into people’s pockets.

That’s why Labor is eager to help pass the first tranche of the government’s proposed income tax cuts, the more immediate relief designed to flow to low and middle-income earners from July 1.

We will continue to consider the second and third stages of the government’s plan, but they don’t come into effect until 2022 and 2024, so wouldn’t give the economy the boost the RBA is calling for in the near term in any case.


If the government were concerned about giving tax relief to people of modest means, it would split the bill to get the first tranche through straight away.

The second big challenge is declining productivity. The latest data shows GDP per hour worked has fallen for the past four consecutive quarters.

This is hardly a surprise, given the hollowing out of skills and human capital during the past six years. On top of that, business investment is falling across all categories and industries, and the government has slashed infrastructure investment, delivering $5.1 billion less than promised over its first five budgets.

Investment in infrastructure is declining at the same time as the Treasurer is claiming a $100 billion spend will stimulate the economy and boost growth.

He has failed to mention that most of that projected investment comes at the back end of the 10-year medium-term period and that only a small percentage will come during the next few years.

To stimulate anaemic growth, the Treasurer could speed up the rollout on the government’s investments to give an economic benefit while it’s needed.

Labor will play a constructive role on economic policy, prioritising what is responsible and affordable and what gives Australia the best chance to turn around flagging growth.

In time, we’ll propose our own plans to get the economy moving; to ensure it works for people, and not against them; and to build broad growth and opportunity by modernising the economy to create more and ­better jobs.

Ours will be a positive vision, as we go about reclaiming Labor’s rightful place as the party of aspiration and the suburbs.

We will take time to properly develop and consult on our policy and plans, and to get them right.

In the meantime, it’s the government that should be scrutinised and held accountable for the parlous state of domestic growth on its watch.

Perhaps the most ridiculous claim during the election campaign was that the Liberals had done a good job managing the economy. This past week has shown that the facts just don’t support these claims.

I've long held the view that governments seldom have any control over the economy. Some of them are prepared to take political risks for long term benefit to the citizens. I can think of a few courageous reforms - decimalisation to improve productivity, floating the dollar, universal superannuation, abolition of the Wheat Board, free trade agreements and so on. Perhaps the tax cuts are visionary but I think speeding "up the rollout on the government’s investments to give an economic benefit while it’s needed" might be a better idea.

Nationals don't need a science watchdog, they need a science guide dog. Paul James Fitzgerald. Tongue
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06-11-2019, 06:43 PM
Post: #2
RE: How strong is the Australian economy?
how good is the share market?
been rising since january
no doom and gloom there.
i'm up $40,000 since scomo was elected.
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06-11-2019, 07:59 PM
Post: #3
RE: How strong is the Australian economy?
It's simple: The cost of electricity to business - and others - is stifling the Australian economy.

The world has succumbed to smarmy spreadsheet magic pudding nonsense about wind and solar that simply does not add up.
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06-11-2019, 08:12 PM
Post: #4
RE: How strong is the Australian economy?
(06-11-2019 06:43 PM)maxhr54 Wrote:  how good is the share market?
been rising since january
no doom and gloom there.
i'm up $40,000 since scomo was elected.

Because I still get a part pension, it's not good news.

Something for all you Trump haters out there:

[Image: DowObamaTrump.JPG?dl=0]

The world has succumbed to smarmy spreadsheet magic pudding nonsense about wind and solar that simply does not add up.
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06-11-2019, 08:43 PM (This post was last modified: 06-11-2019 08:54 PM by Di Wundrin.)
Post: #5
RE: How strong is the Australian economy?
Quote:Labor will play a constructive role on economic policy, /that will be a novelty. prioritising what is responsible and affordable so will that! and what gives Australia the best chance to turn around flagging growth.

Like they even know?? why not let us in on that?

In time, we’ll propose our own plans to get the economy moving; when they think one up? to ensure it works for people, and not against them; and to build broad growth and opportunity by modernising the economy to create more and ­better jobs. Well aren't they just luverly comforting hollow "aspirations"?
No mention of the method they intend to employ other than from robbing it from their former working class but now retired "True believers!"
Most retired people were working people fellas. You conveniently forgot that, also forgot that it was Labor who encouraged, and legislated, that they save for their retirement self support. Traitorous bastards.


Ours will be a positive vision, as we go about reclaiming Labor’s rightful place as the party of aspiration and] the suburbs.

"the SUBURBS!
That was the moment Joel Fitzgibbon and every Labor candidate, past and prospective, north and west of the Sydney CBD slit their wrists!

Labor is alllll about the cities while not understanding why 'the bush' doesn't vote for them.Huh


We will take time to properly develop and consult on our policy and plans, and to get them right.

'Ello 'ello 'ello! There's a glimmer of hope for the true believers!
The Labor Party is finally going to "consult" on their policy, and have a good look at what a fustercluck of bleeding heart simplistic fakery and pie in the sky pork barreling their policy and plan actually was!

But they're going to "get them right." So at last they've realised and admitted that they got them wrong then.

Good luck with getting them right if they keep lining up all the things that they want to spend on and pay no attention to how to accrue the funds to pay for them without bankrupting the country entirely.
Maybe they should work on making the money first, and then allocating what they have to what needs it most??
..oh wait ... that's how the LNP does it. silly me
.Cool



(06-11-2019 06:43 PM)maxhr54 Wrote:  how good is the share market?
been rising since january
no doom and gloom there.
i'm up $40,000 since scomo was elected.

Onya Max! Good to see people benefiting from the electors getting it right. RolleyesCoolBig Grin

How good is Scomo?? ... it's okay, you don't have to admit it. Rolleyes

I got around 2 grand richer today. Got the grand for the car in cash in an envelope (white) plus it's saved me nearly a grand on not having to pay comp, and 3rd Party insurance, nor registration fee, nor will I need to renew my NRMA membership.

Have to look at the bright side of being marooned.Sad
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06-11-2019, 10:25 PM
Post: #6
RE: How strong is the Australian economy?
(06-11-2019 08:43 PM)Di Wundrin Wrote:  [quote]
[ Here I snipped a large number of insightful comments that went to the heart of Labor's appalling misunderstanding of national economics .... notwithstanding their claim to have saved Australia from recession with Peter Costello's prudent accumulation of funds. ]

Have to look at the bright side of being marooned.Sad

Down there, surely that would be blued?

The world has succumbed to smarmy spreadsheet magic pudding nonsense about wind and solar that simply does not add up.
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06-11-2019, 10:39 PM (This post was last modified: 06-11-2019 10:39 PM by maxhr54.)
Post: #7
RE: How strong is the Australian economy?
to be fair, no pollie in government is going to come out and say
"recession coming, prepare for a rainy day"
Because there is a rush to the exits and people stop spending, economy falls over.
it's a funny thing about debt, - if one person reduces their debt, pays off their home loan and starts saving money its good, right?.

BUT...if everyone does that, the economy falls over. Confused
Fear and greed, ying and yang, good and evil, yada yada yada...Blush
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06-11-2019, 11:04 PM (This post was last modified: 06-11-2019 11:05 PM by dbeyat45.)
Post: #8
RE: How strong is the Australian economy?
(06-11-2019 10:39 PM)maxhr54 Wrote:  to be fair, no pollie in government is going to come out and say
"recession coming, prepare for a rainy day"
Because there is a rush to the exits and people stop spending, economy falls over.
it's a funny thing about debt, - if one person reduces their debt, pays off their home loan and starts saving money its good, right?.

BUT...if everyone does that, the economy falls over. Confused
Fear and greed, ying and yang, good and evil, yada yada yada...Blush

Unfortunately, the doomsayers are everywhere, especially in the mainstream media.

"The economy is booming" or "Looking forward to good times ahead" or "Arctic ice reaches record levels" are not a click-gathering or paper-selling headlines. Confused

The world has succumbed to smarmy spreadsheet magic pudding nonsense about wind and solar that simply does not add up.
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