Let's just simply say that business and consumer confidence are an essential element of a healthy economy. Having said that however, the underlying issues are very complex.
I don't argue that Wayne Swan is a genius but the government has got a number of things right and this has been almost unanimously acknowledged by economists. Not everything right, but a number of things. I'm not going to enumerate them or I'll be accused of ramping. However, the international community is somewhat bemused at how negative Australians are, and jealous of our numbers given the situation they are facing.
This is not to say that things are all fine. Clearly not. The entire economic system is going through massive upheaval as the industrial revolution in developed nations has lost it's mojo. Only BRICs have mojo and even then there are issues. It is kind of absurd that Australians have been as worried about the economy as Greeks, we face nothing like their issues, in scale and in substance. The big threat we do face however is the high USD. This could kill what is left of our industries, no doubt. Is this the fault of the Australian government? Hardly. QE infinity is not something Swan dished out.
Ironically however, it has been a good thing that as a result of suddenly identifying with the Greeks (is it the rellos on the phone? We have a huge amount of greeks in melbourne), previously overindebted Australians have ended their love affair with credit cards, have embraced frugality and also are paying down debt. This is long overdue, a bit of a necessary overreaction and such readjustments are healthy. It is however, along with other factors, killing retail.
But political leaders continually talking the economy down is also bordering on irresponsible. This is what Tony Abbott has been doing and people are realising he is a ranter. All he can manage are cheap shots. We all deserve better IMO. Turnbull is biding his time....
