We are witnessing history being made. Unfortunately, it s a
history-making decline in standards of political behaviour. At least it
proves we 're not merely imagining that things were better in the old
days.
Tempting though it is, one of the things incoming governments don' t do is delve into the affairs of their predecessor. The
papers of the old government aren 't made available to the new masters.
But all that is out...
Wednesday, February 26, 2014
Monday, February 24, 2014
Abbott's anti-union push not what it appears
If you were a conspiracy theorist it would be easy to see Tony Abbott's
actions against unions as revealing his true dastardly intentions
despite all his soothing statements before the election.
But I see it
just as standard Coalition behaviour, motivated more by a search for
political advantage than by a desire to free the economy from the
scourge of unionism. Indeed, when the union movement finally expires -
which can't...
Saturday, February 22, 2014
Why the success of the G20 matters
It's easy to be cynical about the G20. Will the meeting of finance
ministers and central bank governors in Sydney this weekend, and the
leaders' summit in Brisbane in November, amount to anything more than
talkfests?
People say the Brisbane summit will be the largest and most
important economic meeting ever held in Australia. That's true, but it
just means it will be bigger than the Sydney APEC leaders' summit in
2007...
Wednesday, February 19, 2014
Drawing a line between the market and the social
The hard part of economics, politics and public policy is deciding where
to draw the line. It's as easy as pie to take a position at one extreme
or the other. To buy the whole Liberal or Labor package - which, after a
change of government, will often involve supporting things you opposed
six months ago. To oppose virtually all government regulation or to
think more regulation is never enough. Doing it this way always feels...
Monday, February 17, 2014
Hockey risks scaring off consumers
You can never be sure what a fall in the measures of consumer
confidence actually proves, but if I were Joe Hockey I'd be a bit
worried. If he keeps on playing tough guy he may frighten people into
clamping their purses shut.
We learnt last week that the Westpac-Melbourne Institute
index of consumer sentiment fell by 3 per cent this month, down 9.5 per
cent from its election-time high. Optimists now barely outnumber pessimists,...
Saturday, February 15, 2014
Why the jobs will come, though we can't say where
Take the news that Toyota is joining Holden and Ford in ceasing to
make cars in Australia, then add the news that unemployment is now the
highest it has been in a decade and you see why everyone's asking the
obvious question: where will the new jobs be coming from?
Bill Shorten has joined others in demanding to see the Abbott
government's ''jobs plan''. If the government has no plan to ensure
there are new jobs to replace...
Wednesday, February 12, 2014
Why the end of car-making isn't such a terrible thing
One advantage of getting old is meant to be a greater sense of
perspective. You've seen a lot of change over your lifetime and seeing a
bit more doesn't convince you the world is coming to an end.
Unfortunately, getting old can also leave you convinced every change is
for the worst as the world goes to the dogs.
A lot of people have been
disturbed by the news that Toyota's closure as a car maker in 2017 will
bring an end...
Monday, February 10, 2014
We need a wage problem, so let's imagine one
It's been two decades since we had reason to worry about excessive wage
growth. This remains true despite cabinet ministers and some economists
saying we have a problem.
The structural reason we don't have to worry
is the continuing effect of the Hawke-Keating government's
micro-economic reforms - particularly the floating of the dollar, the
removal of protection against imports, deregulation of many industries
and the...
Saturday, February 8, 2014
Top 10 economic reforms that transformed Australia
1. Floating the dollar
Letting the market set the value of the Aussie dollar after
December 1983 allowed it to fluctuate between US48c and $US1.10 so far,
making it an absorber of shocks from the rest of the world. This has
made the economy more stable and stopped the resources boom causing an
inflation blowout.
2. Deregulating the banks
Introducing foreign banks and allowing...
Our three top treasurers in 40 years
In the 40 years I've now been an economic journalist for Fairfax Media
I've given 12 federal treasurers the benefit of my free advice. I doubt
it has made much difference, but I do know this: despite all you read in
the paper, our economy is now far better managed than it used to be.
For
this I give most of the political credit to just three of them: Paul
Keating, by a country mile, Peter Costello and one you won't believe:...
A short history of the economy
To me it doesn't seem all that long ago, but looking back I have to
admit the economy has changed hugely since my first day as an over-age
cadet journalist on February 7, 1974. Some things are worse, but a lot
are better.
What strikes me most, however, is the roller-coaster
ride we have been on to get from then to now.
In those days, just eight
years after we moved from pounds, shillings and pence, TV was still
black...
How my views have changed over 40 years
They say if you still believe at 50 what you believed when you were 15,
you haven't lived. Just this week I've now worked at Fairfax Media as an
economics journalist for 40 years. Those ages don't quite fit, but my
views today are certainly very different from what they were when I
started.
When, disillusioned with life as a chartered accountant, I
began at Fairfax, most of my effort went into relearning the economics I
...
Monday, February 3, 2014
Hockey faces daunting budget challenge
In shaping this year's budget - their most important macro-economic task
for the year - Tony Abbott and Joe Hockey face a dilemma: the timing
for a particularly tough budget may be right politically, but it's
anything but right economically.
It's clear they intend to follow the
example of John Howard and Paul Keating by using the first budget after
their election to have an almighty cleanout and strike a lasting blow
for...
Saturday, February 1, 2014
Outlook for the economy: short-term and long
A lot of people believe Tony Abbott and Joe Hockey begin their first
full year in office facing a daunting economic challenge, even a crisis.
But what is the nature of the challenge? How daunting is it, and how
pressing?
Well, let's analyse it - and do so using some of the standard distinctions economists use to get their heads around a problem.
People
see the government as having a problem with the economy and with its...
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