Well, the Prime Minister and her cohort of economic spruikbots have done it now. By going too far in attacking the economic “doomsayers”, they have opened a far more reasonable, centrist space for the Coalition to stroll into regarding economic risk and stimulus. From the AFR this morning:
Mr Hockey said: “It is the height of hubris to dismiss out of hand dire warnings of a possible downturn from respected observers. It is wise to listen and prepare.”
The Coalition shadow treasurer said he had put his mind to how economic activity could be safeguarded if the downturn in the private sector became more protracted. “Australia has not experienced a significant downturn in over 20 years and I am determined that it will not occur on my watch if we are elected on September 14,” he said.
“Protracted downturns in economic activity are very damaging . . . and it can take a very long time for the damage to be made good.
“This could only occur if the normal cyclical ‘fail-safes’ of lower interest rates, a lower Australian dollar and the automatic fiscal stabilisers were unable to provide a complete counter-cyclical boost,” Mr Hockey said.
Hockey also explicitly eschewed cash handouts for dead people, building school halls, and installing pink batts. This rather raises the question of what he would do. If no “sugar hit” is allowed. No “quick to deploy” housing improvement is allowed. And no “perceived as wasteful” long term construction allowed then what is left? Could be a first home buyer grant and major infrastructure projects but that won’t work as swiftly or as well.
But for today, it’s a hearty congratulations to the PM for handing the LNP a get out of jail free card in reference to the only major concern that the community has about Liberal economic management. If we didn’t know any better, one might conclude that Gillard is now deliberately campaigning for 2016 by putting all energy into making it appear that it’s the new Liberal government that’s responsible for all problems next year. Perhaps a deal has been made with Bill Shorten who get’s to take his shot in 2016 if he protects Gillard’s legacy now?
Speculation of course but I’d prefer to find a strategy somewhere in the chaos. Seeing the glass half full, as it were.
