Jul 4, 2014

Three major speeches offer contrasting economic approaches

Three major speeches from our key economic officials this week offer quite different takes on the task of economic management, Glenn Dyer and Bernard Keane write.

This week was unusual in giving us three major speeches from three of the most powerful economic officials in the country — outgoing Treasury Head Martin Parkinson, Treasury’s head of macroeconomic group David Gruen and RBA governor Glenn Stevens. And they were three quite different speeches.


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7 thoughts on “Three major speeches offer contrasting economic approaches

  1. David Hand

    The problem with equity being at the heart of reform is that someone has to create the wealth that is then redistributed across the community. The danger with Australia’s economy today is that the GDP growth needed to fund such largess won’t occur.

    There has been a tendency by both sides of politics to rush into huge hand outs in order to bribe electors to vote for them and this has become unsustainable with the Rudd / Gillard governments.

    Spending commitments made by them were conveniently loaded into years beyond the 4 year forward estimate of the budget process and those years are not appearing. As the Abbott government opts not to honour those unfunded spending commitments, Shorten and the left can gleefully go running round shouting “spending cuts the hit the most vulnerable!!”. This is good politics but dismal leadership for the economic good of future generations.

  2. David Hand

    Should be “those years are now appearing”

  3. Sailor

    David Hand, when did the rAbbott CEASE going “gleefully .. running round shouting “spending cuts the hit the most vulnerable!!”.” when in opposition??

    Agreed, “This is good politics but dismal leadership for the economic good of future generations.”, and that’s the mob of drongos & proven useless, brainless, zombies & drones you (presumably) were overjoyed to see voted in. A bit of payback must be almost impossible to resist for Labort, especially given the spiteful vindictive cretinous performance of the dopes you elected – bullies in power, it is obvious to me,

    I doubt you agree. Tough.

  4. bushby jane

    Martin Parkinson seems to have sold out.
    I’m with Garnaut, I think the gains from the mining boom were/are being squandered, as we as a country are gaining very little from the huge profits that the mining companies are making. They actually don’t employ heaps of people, do not pay much tax, get huge relief from fuel tax that I don’t think is deserved (no linking of road funding and fuel tax), and nearly all other Australians have suffered hugely from the high dollar which the mining boom has largely created.
    Howard did not even build any infrastructure to speak of with his windfall, only give people tax cuts that they didn’t need and what we seem to be now stuck with when we could do to be collecting more tax revenue.

  5. David Hand

    Oh yes, I voted for them.
    Abbott’s not my preferred leader but they didn’t ask me.

    Abbott faced a different situation when he was in opposition. He had a truly incompetent administration to oppose. Not because they were ALP. I think the most visionary federal government in my lifetime was the Hawke/Keating ALP government.

    Bever have we plunged into debt so fast and with such disregard for the next generation. Staying in power and doing deals to achieve it were the only objectives, particularly of the Gillard administration. Selling the carbon tax to the Greens, smooching Peter Slipper, abandoning Wilkie, announcing grandiose unfunded commitments that were utterly unsustainable gave Abbott plenty to oppose.

    At least Tony is doing unpopular things. Hey, you can vote him out in 2016!

  6. tonyfunnywalker

    David Hand we propose to if not sooner. Abbott went to the electorate with 3 word slogans and no policies. His policies are the 75 point IPA wish list which this incompetent government is pathetic in its ability to achieve anything; even to execute even its 3 word slogans seems beyond its capabilities.
    This is the worst Government ever that spends most of its time pandering to donors than sponsors rather than generating reforms that will benefit Australian Society generally and this article is a good illustration of this.
    Totally out of step with everyone and guided by a self-serving oligarchy of cronies and lobbyists the Abbott government has lost touch with reality.
    A Government driven by arrogance and malevolence that Australia has not witnessed since the days of colonial rule where corruption and patronage was rife.
    The objective to demonise and impoverish most of the population is not what the electorate was offered in September 2003. The hidden agenda, the deceit and the lack of any moral fibre at all; has become the hallmark of right- wing Liberalism in the guise of reform by deploying the totalitarian tactics of deceit, secrecy and propaganda to achieve its ends –more reminiscent of the 1930’s than of a modern democracy.
    To promote economic slavery prompted by debit and the imposition of 17th Century economic philosophy using strategies that would even make Machiavelli rewrite the Prince for its evil intent is the Abbott agenda — offered in the guise of reform and creating a “better” society.
    As I predicted the election of Abbott would herald 1000 days of terror – a modern day Caligula but David the countdown is progressing to his electoral demise in the meantime a focus on damage control is paramount if Australian values are to be preserved.

  7. David Hand

    Wow Tony.
    I went through your impressive rant twice, looking for any comment at all about the issues canvassed. I expect there is some substance in the background but twice is enough.

    I am guessing you want the carbon tax kept, onshore processing to resume and everyone to be paid the same by the government irrespective of the contribution to the economy they make. I’m only really guessing because it wasn’t that clear from the froth-filled venom in your post.

    Anyway, that seems to be the general thrust of your view. Oh, and you are not a supporter of Tony Abbott. I did work that out.

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