In 30 years of active business participation in Australia, I have never known a period like now where so much negative sentiment and uncertainty pervades.
Domestic consumption and expenditure are being stifled by these mindsets.
Global factors aside, the present federal government is contributing significantly to this.
This government is widely perceived as inept, untrustworthy and unstable.
It is controlled by idealogues, hell-bent on restructuring Australian society and its economy at any cost.
What is happening?
. the Fair Work system is facilitating substantial wage rises across industries without matching productivity;
. upcoming energy policies and carbon imposts are creating collective fear of rising business and living costs;
. public expenditure splurges occur under the guise of social welfare and bigger bureaucracy wages;
. inefficient industries are being propped up haphazardly by generous subsidies;
. administrative incompetence (ie policy reversals, changes of direction, incompetent policy execution , renegged promises and spending program wastage);
. late, over-budget NBN rollout, with questionable relevance, at high risk of a massive cost blowout;
. ongoing threats remain of unpredictable policies from the unrepresentative extremist greens;
Defective national government is clearly playing a large role in creating a domestic environment. People are genuinely afraid to spend or commit to anything economically.
More businesses are becoming unprofitable because of the lack of demand and rising input costs. Businesses are closing or shedding workers.
We all face the prospect of more taxes to fund misguided and reckless government extravagences.
I firmly believe that only when this government is removed, will economic conditions be established for a return to normal growth and prosperity.
Meantime, it appears we have to endure this rabble for another 18 months.
