We came across this blog post on the Macro Business Website which we thought was interesting.
You can’t help but feel that Australia is very quickly shooting itself in the foot and we potentially run the risk of having a half baked economy which is incapable of being competitive both on a domestic and global scale.
What pains us most is that it is not the economics that is holding us back, but more so the politics. Oh how we yearn from some proper leadership. Someone with the internal fortitude to stand up and do what is right for the country minus the ideological bend.
We thank Macro business for their contribution which we have provided below
Can you sense it? Chaos is again engulfing Australia’s political economy. It’s moving fast, faster than politicians can contain it.
It’s a mixture of dying media interests desperate to carve out a partisan niche, a confused and spoiled polity that has been systematically lied to, a political class that is equal portions political bastardry and policy haplessness, and an economy that is on a descending glide path that could get out of control.
It’s a toxic brew that is provoking increasingly irrational responses across the spectrum.
Tony Abbott has been accused by all and sundry and committing a “Gillard moment” because he’s lied about important policies. But the current environment reminds me more of another, earlier and more tumultuous episode in the recent history of Australian political economy: Kevin Rudd’s mining tax debacle and the outcomes may be similar.
I’m not arguing Tony Abbott is about to lose his job but consider his fate if consumer confidence does not bounce back enough? The other similarities are stark. A newly elected government is setting about imposing serious reform to shore up future budget balances. But in its rush (or political naivete) it has filled the space rightly identified as in need of reform with ill-considered policy.
Affected interests are on the march, mobilising protests and drawing heavy-hitting support from sectional media interests that are inflaming the anger. Opposition parties are moving to blanket block legislation rather than negotiate better outcomes. Arguments on both sides are becoming polarised and irrational in the pursuit of agenda’s other than the national interest. Outlandish claims and the violent yoking of heterogeneous facts is now de rigueur.
At the bottom of it all, the real soil of economic reform remains not only un-tilled but, as the furor grows louder, it is being salted, guaranteeing that no future politician will return to grow the new policy that we desperately need to prevent worse future outcomes.
That’s the final parallel. The Australian people are again being prodded, cajoled and bullied towards the embrace agenda’s deeply counter to their own long term interests.
Our political economy is broken, perhaps even more so than that of the United States, and S&P is very wise to be warning us and others against it.