Mixing daiquiris and mining a top cocktail for economy

Michael says:

08:14am | 08/09/11

Yeah, except under this government’s policies, we would pay Asia for the right toproduce the CO2 to make the energy to sell to the same people. It would be a nett cost to Australia.

But that’s OK - juliar would have a bag of lollies and a tax hand-out for us all (to pay for)

Steve says:

08:48am | 08/09/11

For once I agree with you Erick. This is a great idea. And we can incentivise solar energy providers so that they are more competitive. I wonder how we can do that? I guess we can always make the non-renewable and therefore unsustainable energy generation sources pay a bit extra to produce electricity, and redirect the funds into such solar plants and energy highway upgrades so that we could become a global energy capital.

Nah stuff that, lets dig sh!t from out of the ground - that other stuff is too hard and although it may help us in the future, what will it do for us now!?!?!

PTom says:

12:04pm | 08/09/11

@Steve,
Australia is the first country in the world that has “solar energy cost parity to grid power” a forcaste 6 years a head of the EU.
This is mostly due to the number of home solar panels installed not the large generator like the rest of the world has gone with.

Solar will become cheaper form here on.

TomZ says:

12:22pm | 08/09/11

There is a fair bit of sunshine in those gulf states and they would not have to export the energy as far. However as far as energy self sufficiency, we could do worse than explore those ideas

How about damming the Franklin River? Just think, we could reduce carbon emissions, get cheap energy, drown a few stinking greenies, reduce our welfare bills and build an aluminium smelter in Tassie.

Steve says:

02:10pm | 08/09/11

PTom, and I think the small scaled solar is the best way to provide electricity for ourselves to make ourselves self sustaining.

However, for countries that don’t have the resources we have (renewable or not), we could also export electricity, particularly to our neighbours in south east asia, who have large populations and therefore consumers - producing an economies of scale for the large scale generators in Australia. We may also come up with a few technological innovations of our own, rather than relying on other countries to innovate and for us to just dig and drill.

Jay Santos says:

02:34pm | 08/09/11

“...Solar will become cheaper form(sic) here on…”

Rubbish.

Such delusions of grandeur are manifest amongst proselytic planet doomsayers and sandal-wearing self-sufficiency ‘experts’.

You’ve been conned by feed-in tariffs, cheap Chinese componentry and ENORMOUS government subsidies.

Solar has no storage ability.
Solar has no baseload capacity.
Solar has no ‘to-market’ mechanism compatible with the existing network.

Andrew says:

03:18pm | 08/09/11

Rubbish!
Solar has no storage ability.
Solar has no baseload capacity.

Thermal solar plants exist and run already. Molten salt is the storage medium.
Open your eyes before you make such gaffs.

PTom says:

03:55pm | 08/09/11

@Jay Santos,

Grid power price are going up and even with feed-in tariffs being reduce solar will become cheaper.

Cheap Chinese componentry and the ENORMOUS government subsidy is only to install the panels nothing to do with the ongoing cost I am talking about.

Solar does not need storage ability that is why you have batteries at home or uses thermal on solar farms

“Solar no baseload capacity”  What a load of crap. I was talking about home panel solar there is no need for baseload capacity for a single home as the panel provide all it needs. However Solar Farms have Baseload it is there from Sun Up to Sun Down and Solar

Solar has no ‘to-market’ mechanism compatible with the existing network. What the hell are you talking about solar produce power like coal and can be connected direct to the grid.

How about you read more
http://www.abc.net.au/news/2011-09-07/solar-industry-celebrates-grid-parity/2875592/?site=sydney

Jay Santos says:

04:39pm | 08/09/11

“...Thermal solar plants exist and run already. Molten salt is the storage medium…”

Geographically constrained; stupidly expensive capital costs; zero emissions reductions.

Maybe you could tell us how many of these plants exist in Australia and detail their commercial success.

Take your time.

Andrew says:

05:20pm | 08/09/11

You said it was rubbish Jay, I was happy to correct you

Zero emmissions indeed.

Jay Santos says:

07:54pm | 08/09/11

Andrew,

Thanks for proving my point.

I can’t wait for your physics lecture on the efficacy and efficiency of solar thermal energy generation and molten salt storage capacity in Australia.

My doctor is standing by to stitch my sides up.

Nathan says:

07:23am | 08/09/11

I think the problem is that there are jobs in regional areas but people don’t want to go (i realise i am not the first person to say this) but i agree with the sentiment

George says:

08:02am | 08/09/11

IMHO Australia is not willing to have overseas workers take up shortage of semi to low skilled labour supply in Australia.  Ask anyone and they would acquiesce privately but deny it openly.

Nevertheless it’s the overseas workers that take up the labour shortage in the agricultural, manufacturing, health and hospitality industries in our current labour market. 

They are the ones who are exploited by unscrupulous Australian employers, are ordered to work the unsociable hours that average “aussies” reject, forced to accept less than their legal entitlements under current workplace laws because they don’t have a choice, complaining means that they lose their job and sometimes even subjected to physical and emotional abuse.  Yet they still want to come.

They are the ones not afforded general protection by the unions because they are not members because they rather earn the money and keep it rather part with it for the privilege of being a member of an association who might often enough does not add value to their existence.

Perhaps if these prospective overseas workers are told before hand about their legal entitlements then we would see less exploitation, better yet if they are told about how inhumane some of the work conditions here they would stay away.

marley says:

08:56am | 08/09/11

Can’t comment on the mining industry, but I was up in the Kimberley not so long ago - and a very high proportion of the people I ran into in the service industry - bar tenders, waiters, receptionists, store clerks, even people working in local information centers in the back of beyond - were backpackers - Irish, English, Canadian, French, Italian.  They were absolutely essential to the local economies.

Now, if a foreign backpacker is happy to take a job in Kununnura or Broome, why isn’t an unemployed Australian?  Minimum wage in Australia is, after all, very generous compared to many other countries.

Mahhrat says:

09:11am | 08/09/11

@George, absolutely agree with you there.

Look, I know I’m speaking hypothetically, but I’ve never understood how we have a right to live wherever we want.

We don’t.  I’d love to live in Battery Point, but I don’t have the money.

Similarly, people shouldn’t be living anywhere there’s no opportunities.

Saying THAT, there’s no reason we can’t build opportunities for people by encouraging businesses to set up in more remote locations.

marley says:

10:02am | 08/09/11

@Mahrat - the problem with setting up in remote areas or even rural ones, is the unavailability of labour. It’s not just that there aren’t many people to choose from, it’s that the people there don’t have the skills needed. 

I’m thinking of two Canadian examples I visited. One was a small factory set up in regional Nova Scotia with government development funds.  Although there was high unemployment in the area, the factory managers found it very hard to find even unskilled labour, and they also found it very hard to find people who understood that having a job meant showing up for work on time, five days a week, and doing their 8 hours.  It eventually folded.  The other was a major government office moved from downtown Toronto to small town Alberta - and again, finding people locally who could or wanted to do the work turned out to be a major problem.  The office is still struggling, 20 years on, to get and retain clerical level staff.

Direct says:

10:20am | 08/09/11

Nathan,

The problem is the same problem that’s always facing industry in this country. The mining industry isn’t interested in providing training, but expects 2 to 3 years experience and qualifications for positions where people could be trained on the job. What’s the point of moving somewhere if there’s no guarantee of employment?

Mattb says:

10:20am | 08/09/11

@mahhrat

‘Saying THAT, there’s no reason we can’t build opportunities for people by encouraging businesses to set up in more remote locations.’

Sounds like a job for the NBN….

PTom says:

12:21pm | 08/09/11

Mahhrat,

People have families, People are not going to move families across the country to some one horse town that has no services, schools or hospitals just so mum or dad can get minimum wage working in a pub.

Backpackers are here to see the country and move from one minimum pay job to the next just so they can see the place just look at the backpackers that pick fruit along the east coast.

Young urban Australian do not because of the following
1) Busy working in the major city for a good wage.
2) Still in education
3) Travelling or working overseas
4) Don’t want to live in some back water town miles from any where.
Why do you think so many country kids move to the city and never go back.

Big Jay says:

07:54am | 08/09/11

FFS when will people realise you Production Growth is not the same as Population Growth. Glenn Stevens is the only one to even try and explain this concept of productivity in the current politcal debate. Increased output per man hour of input. You can do this with more CAPITAL in terms of machines, infrastructure and process engineering. It not a case of working harder or working more hours or having a bigger army of workers.

PTom says:

12:38pm | 08/09/11

Big Jay,

How will CAPITAL in terms of machines help sure it might help reduce the number of fruit pickers and sheep shears, but in tourism more capital means more jobs like tour guides, bar staff, waiters, cleaners and cooks. So where do were do we get the human CAPITAL from if this country is near full employment?

Big Jay says:

03:32pm | 08/09/11

@Ptom…I was referring to economic growth generally, not specific to the tourism industry. But the priciple still applies, it’s a bit complicated, but if your at full employment (and we are nowhere near that) but you want more bodies to do those jobs…You could just leave it to the market and let wages bid up in those areas, or let the industry die a natural death….Or free up labour from somewhere else through efficiency, for example, the state govt sacking shedloads of office staff, or re-instating rail and put a bunch of truckies out of work, i hate smart-meters but they are going to put a massive field force of readers out of work…those last two require capital

I’m against foreign workers and I’m the son of non-white immigrants (though from an english speaking country)...I don’t want an underclass of servants for the somewhat well-to-do population, living in slums, 10 to a house while the rest of are fat, dumb and lazy…either pay the decent wages demanded or dont offer the service.

AND Production (GDP)/person is the key to better living standards, not total national production.

Tony of Poorakistan says:

09:31am | 08/09/11

No thanks - you’ll never get rid of them. 
 
Best thing would be to use English and Irish backpackers. They make pretty entertaining barmen and waitresses. And they speak English.

mel says:

10:02am | 08/09/11

Tony of Poorakistan (I shudder to think that you may come from South Australia), in what world are English and Irish backpackers in any way entertaining?

And aren’t people from the UK the largest group of illegal immigrants (that is, overstaying their visas)? If you are worried about illegal immigration why are you happy with them but not people from other countries? I can think of one reason.

marley says:

11:45am | 08/09/11

@mel - sorry, you have your facts wrong. By far the largest group of overstayers in Australia are Chinese followed by Americans and Malaysians.  The Brits are fourth - and when you consider the number of American and British overstayers compared with the number of American and British visitors, they’re actually among the less likely to violate their visas.

TomZ says:

12:10pm | 08/09/11

How about a few of our pampered, snivelling Aussie dole bludgers condescending to do that work?

Direct says:

10:28am | 08/09/11

I agree Michael. There is incentive for me to move out of IT into a mining job, many of my friends have already chucked in their IT jobs to do shift working driving trucks around in circles in the mining industry, making more money and enduring less stress than they ever did in IT.

However, there is little incentive for me to chuck in a moderately paid IT job in a metro area to become a waiter or a bartender, considering I can’t even get a casual job locally doing either of these without having 2-3 years experience.

Condor says:

10:56am | 08/09/11

I agree. I’m in the same position (almost, not in IT but an entirely different field).

There is nothing for me in regional areas and I moved from a regional area to Sydney for employment purposes.

The last two government’s biggest mistakes have been relying on the one-trick pony of the resources boom which will inevitably end.

Albeit this government have tried to make Australia a regional financial services hub (and area I work in tangentially) they haven’t done much for the labour force in this area.

marley says:

09:10am | 08/09/11

@Kipling - re tourism.  Sorry,but I disagree entirely with you on that point. Sure, Australia is attractive to foreign visitors - but it’s a hell of a long way from anywhere (except NZ, of course), and it doesn’t provide good value for money.  Hotels, meals, car rentals, etc are all pricey, relative to a lot of other places, and especially now that the dollar is so high.  Tourism has sagged over the last couple of years:  increasing wages (which are already twice the wage levels in North America, for example) , thereby increasing prices, will exacerbate the situation.

The tourist industry here has to compete with the tourist industry in NZ, Canada, the US, South Africa and a whole lot of other places.  That it is the furthest away, and the most expensive to visit, means it’s behind the 8 ball right from the start.

Condor says:

11:07am | 08/09/11

5% is practically full employment in this country.

There will always be some level of unemployment whether temporary or long-term:
- people made redundant
- people that quit and are between jobs when the census was taken
- people that live in areas where there are no jobs
- people that are simply unemployable for whatever reason

Rose says:

03:14pm | 08/09/11

Only a fool would want full employment. Optimum unemployment is around 3-4%, allowing for a flexibility and fluidity in the job market to suit the everchanging needs of business.

Rose says:

03:10pm | 08/09/11

Maybe, but what were all the tourism staff supposed to do when tourism slumped? Hang around living off air when they got laid off due to no tourists. The best thing was for them to be flexible and move to other industries. The challenge in getting them back is that wages are so low in tourism compared to mining that they may not want to come back yet. Many will probably hang around in mining until they’ve saved up a handy nest egg so they won’t mind coming back to the towns and cities with lower wages, and who could blame them?

Peter says:

10:19am | 08/09/11

Hows that recession going madkat?

MadKat of Melbourne says:

10:42am | 08/09/11

Which recession is that Peter ? The Japanese one they slipped into because of the March earthquake, tsunami and nuclear crisis.

Trevor says:

11:00am | 08/09/11

That would be the ten year recession that is ongoing in Japan MadKat.  You haven’t heard of Japan’s Lost Decade? I would suggest you Google it.

Peter says:

11:15am | 08/09/11

Dont worry Trevor, madkat is a an economic student i believe

Trevor says:

11:23am | 08/09/11

Student? She apparently holds a Master’s Degree in Economics!

I believe it was issued from the University of Bottom of a Cornflakes Box.

MadKat of Melbourne says:

12:03pm | 08/09/11

Trevor - yes I’ve heard about the Lost Decade - being a mixed economy hasn’t helped them - neither has the fact that they are a welfare state. And Trevor some people think it should be “Lost Decades” and some people think its a myth. For some other opinions you should read - http://www.theatlantic.com/international/archive/2011/02/the-myth-of-japans-lost-decades/71741/
http://www.guardian.co.uk/commentisfree/2011/jan/17/japan-myth-lost-decade
http://www.forbes.com/sites/johntamny/2011/04/23/the-myth-about-the-myth-of-japans-two-lost-decades/

And Trevor that wouldn’t be “the ten year recession that’s been ongoing in Japan” - since the 1990s ? - you need to re-do you math. Technically Japan was out of recession and recently slipped backed in after their natural disasters.

Regardless of the so-called “Lost Decade” they are the third largest economy in the world and have a very diversified, high tech manufacturing industry that is highly successful. If you want to link their recessions to this fact then supply me with facts and figures.

MadKat of Melbourne says:

12:15pm | 08/09/11

Trevor and Peter - well I’ve been nice, haven’t called anyone names or been rude, tried to have a constructive debate - how I love the insecure left - in an exchange of ideas this is all you can contribute -

MadKat of Melbourne says:

12:31pm | 08/09/11

And Trevor - bit weird though that you’re remembering details about me after reading it off a blog from weeks ago - I don’t remember any conversations I’ve had with you - I must say I don’t even remember what I’ve typed on this blog half the time - maybe its just that I have a full-life and spend my time thinking about other things -

PTom says:

12:56pm | 08/09/11

Japan, German and Korea have high-tech manufacturing industry and exports to the world. What they have is higher concentration of population to us.

For Australia to reach such high level high-tech manufacturing we would need to have like 20 million people in area the size of Victoria.
Not 20 million in across Australia.

AdamC says:

01:24pm | 08/09/11

There is also the issue of Japan’s shrinking population making top line GDP growth is very hard. ‘Stable’ population advocates should take note of the Japanese malaise. Also, Japan’s economy is largely unreformed and the government’s finances are in a parlous state. The Japanese political class seem totally unable to remedy these ills.

I think Japan, like some European countries, is looking at major unrest ahead as it becomes economically, politically and financially unsustainable.

Trevor says:

01:57pm | 08/09/11

@ MadKat, you don’t remember this little gem you threw at me after I raised such technical terms as ‘GDP’ and ‘tragedy of the commons’ while civily discussing some other topic regarding economics:

“I hold a Masters Degree in Economics and can tear apart any arguement you put forward”?

I’m disappointed, I still bear the emotional scar.

I love the ignorant right, holding up examples of protectionist economies as examples of the miracles of free trade! Japan, Korea and most of the Asian economies are highly protectionist. Try importing rice into Japan!

However you have revealed yourself. You say that we should imitate Japan because they are the third largest economy in the world? Why not go hell for leather an imitate the US economy, even though it is a basket case, they are the biggest economy in the world!? I think the arguement could be made that the average American has a worse quality of life than a lot of people in the world.

We should not be slaves to the economy, what did it ever do for us?

MadKat of Melbourne says:

02:11pm | 08/09/11

Yes AdamC Japan’s economy is unreformed - their government is so resistant to it - I’ve seen interviews from people within government that have put forward reform proposals only to be sacked the next day - it’s a pity. The articles mentioned above show their small GDP increases when they do have some.

PTom - my mention of the size of Japan’s economy was in reply to the queries regarding their recessions. I know we couldn’t hope to have such a large economy with the small population that we have. But though we will not be able to compete on volume with densely populated countries we could through innovation compete in smaller markets. Read for example about just one company -
http://ausindustry.insitec.com.au/index.php/content_finder/107/18/2616/0/2688
Australia could have a healthy high-tech manufacturing sector that would add greatly to our exports - we would just need more support from the government of the day and we would have to pick our markets more carefully than densely populated countries -

Peter says:

02:59pm | 08/09/11

Still a student it would seem trevor
She thinks that Australia is in a recession.
Rest my case.

MadKat of Melbourne says:

03:21pm | 08/09/11

Trevor - “You say that we should imitate Japan because they are the third largest economy in the world?” - where did I say this exactly.

1. I mentioned their successfull high tech manufacturing sector (a single segment of their economy, not their economy as a whole) as an example of being innovative with our own.
2. You then mentioned the “Lost Decade” like it has something to do with my original post about high tech manufacturing.
3. I mentioned that despite the “Lost Decade” they are the third largest economy in the world, they have a successful high-tech manufacturing industry and asked you to post the facts you have in linking this together which you still haven’t posted.
4. And out of that you let your imagination run wild and get “You say that we should imitate Japan because they are the third largest economy in the world?”

Comprehension of an argument is not one of your strong-points is it Trevor.

And I still can’t believe that you remember the specifics of an argument that was posted weeks ago and can even quote what I said - really Trevor that’s unbelievingly weird - this is only a blog sweetie - get over it -

Trevor says:

03:52pm | 08/09/11

“we would just need more support from the government of the day”

A tacit tip of the hat to the importance of a centrally planned economy?

Help, the Communists are coming!!!

Trevor says:

04:25pm | 08/09/11

@ MadKat, you opening statement was:

“Japan has a high-tech manufacturing industry and exports to the world so why can’t we aspire to that -”

Sounds like you are suggesting we imitate Japan to me MadKat, or am I thinking too broadly again? Do you mean aspire in the more structural sense? If so, I humbly apologise.

However that would undermine your free-market arguements…

Trevor says:

04:32pm | 08/09/11

“Comprehension of an argument is not one of your strong-points is it Trevor.”

And punctuation isn’t one of yours MadKat.

MadKat of Melbourne says:

04:41pm | 08/09/11

“A tacit tip of the hat to the importance of a centrally planned economy?”

No Trevor, support from the government in relaxing regulations and to get out of the way and free-up the markets - you just can’t help but mis-interpret comments with your own communist/socialist slant.

Still waiting for the facts behind your link between the “Lost Decade” and high-tech manufacturing in Japan -

MadKat of Melbourne says:

05:02pm | 08/09/11

Trevor - EPIC FAIL - aspire does not mean that same thing as imitiate (see definitions below) - you can aspire to get somewhere without imitating the actions it takes to get there -

aspire - Direct one’s hopes or ambitions toward achieving something: “we never thought that we might aspire to those heights”.
imitate - Take or follow as a model: “his style was imitated”.

Oh Peter, Peter, Peter - EPIC FAIL - where did I say Australia was in a recession ??? We haven’t had two quarters of negative growth so no we are not in recession.

Is this really the best you guys can do ??? Half-wit comments with little facts to back them up ???

Anichol says:

08:27pm | 08/09/11

@MadKat
Your comment
“support from the government in relaxing regulations and to get out of the way and free-up the markets”
Can you give more detail on this please?

Trevor says:

09:07am | 09/09/11

“support from the government in relaxing regulations and to get out of the way and free-up the markets”

So you do think we should ASPIRE to the US model of privatisation, deregulation and free markets? You still believe that is the best we could do, given the glaring problems that it’s caused over there? Look at what deregulation has done to their health industry for example, it’s the worst system in the world. You are much better getting sick or injured in Cuba!

Jay Santos says:

03:17pm | 08/09/11

The Grattan Institute!  You’re citing a Grattan Institute report.

“...There is no evidence that IR policy designed to drive wages down will improve productivity…”

That’s not part of the critical IR reforms being sought.  This government is atrophied on productivity, defaulting to creating a raft of windsockian taxation policy that does little to imporve Australia’s economic outlook.

This mess is compounded further by positing before the public ill-conceived taxation regimes (CT/MRRT) with zero planning on allocation of received revenues and no CBA’s on ridiculously overblown ‘promises’ like the NBN, BER and the ludicrous Fast-Rail thought bubble amongst a litany of others.

That more than 1 out of every four Australians has the Government providing their main source of income is a travesty.  This statistic worsens through our aged population.

It should come as no surprise that a political party bereft of business people should concoct such convergent and unsustainable socialist policy.

This is Gillard’s Fabian goal: to see government coddle it’s citizens from cradle to grave.  The problem is when no-one is making any money the country is stuffed.

And it’s been almost four years since Workchoices disppeared…get over it already.

Peter says:

04:24pm | 08/09/11

Productivty was lower under workchoices.
Enterprise bargaining is the key, boss and worker agreeing to work to a common goal.
The mentality of us against them is what is the problem in the workplace.

Economist says:

04:49pm | 08/09/11

@JS What elements are you talking about?  Unfair dismissal, sure changes here could be worthwhile, but the main intent of IR reform as proposed by Argus as is to drive wages down. Yet you drive them too far down then no one spends.

Taxation if targeted appropriately can improve productivity. The CT is designed to penalise in favour of innovation. The MRRT was designed to generate $200B fron the predicted $600B in profits from mining over the next decade.

Zero planning? With CT it’s temporary compnesation with allocations for new projects, detail to be finalised. MRRT was for a reduction in other company taxes and increase in savings via super.

The socialist policies? Which ones?

Sure welfare reform should be part of the mix. As for “no one making any money” a bit melodramatic.

Rather than dismiss the GI report, read it because it contains stats demonstrating that even prior to Workchoices the Howard governments focus on IR reform with individual contracts did not improve productivity. Nore did it in NZ who went further with their reforms than Workchoices did. As for getting over it, well if there is no evidence that it improves productivity why support it? In fact productivity improvments related more to the Hawke reforms and the embracing of the PC.

Your letting your own political allegiances get in the way of reasonable policies.

Jay Santos says:

08:01pm | 08/09/11

“...the main intent of IR reform as proposed by Argus as is to drive wages down. Yet you drive them too far down then no one spends…”

You drive them up…inflation genie reappears.

“...Taxation if targeted appropriately can improve productivity. The CT is designed to penalise in favour of innovation. The MRRT was designed to generate $200B fron the predicted $600B in profits from mining over the next decade…”

Where’s the productivity blueprint as to where and how that money will be spent?

The roads, the rail, the ports?

Real realisable and deliverable nfrastructure, unencumbered by inner city farmers and yogurt knitting Greens saving blind frogs.

I don’t trust any government that says let’s get it in first and then we’ll see where best to spend it.

I don’t want government in charge of picking winners either.  Leave that to business and private enterprise.

Peter says:

02:14pm | 08/09/11

In a recession is how it is mean to read.

MadKat of Melbourne says:

02:41pm | 08/09/11

What ?? “it is mean to read” - I’ll stop being mean now then -

Still waiting to see this everyone start posting to validate your comment - (**sound of crickets**)

Economist says:

04:33pm | 08/09/11

@MAdKat I’ll validate. From Berbard Keane at Crikey

“But the Australian economy came back strongly in the last quarter of 2010-11 and even that disaster-induced speed bump in the third quarter was deemed significantly smaller in hindsight. Even manufacturing, supposedly at death’s door courtesy of the strong dollar, made a substantial contribution to growth.

As constant as the health of the Australian economy has been criticism that the government has bungled its management. Before the GFC, it didn’t cut spending hard enough. Then its stimulus packages wouldn’t work. Then they worked too well. Then they weren’t cutting spending enough again. Then they were going to destroy the mining industry. Then the flood levy was going to undermine demand. Then it wasn’t doing enough to help families make ends meet. Then the carbon price was going to destroy the economy.

Then it wasn’t doing enough to protect manufacturing or deal with the “patchwork economy”. The criticism du jour is about productivity, which if anything appears to have started getting off the ground to which it was knocked by WorkChoices and the GFC, but which instead is being framed as a peculiar problem of Labor’s economic management.
Throughout it all jobs have been created, inflation kept in check and public debt kept low. Hell, we’ve even done what economists back in the 1980s and 1990s used to insist was critical to our economic future—we’re saving more. Quarter after quarter, we’re producing economic data that the national flagellants of yesteryear, the commentators who insisted we were permanently one step away from Lee Kuan Yew’s poor white trash of Asia, would have given their right arms for.
All of it, of course, appears to have happened in spite, not because of, Labor’s economic management. As steadily as job growth has increased, so too has Labor’s inability to own anything positive about the economy.

This isn’t a unique problem for Labor. John Howard and Peter Costello presided over a resources boom that saw the economy head back to something close to full employment for the first time since the 1970s. There was much to criticise about their mishandling of the boom, but Australians were more focused on whingeing about their cost of living, despite plenty of evidence the only problems about “making ends meet” for the top 80% of voters related to people being unable to control their consumption. The lesson is that Australians will find something to moan about even when they haven’t had it as good at any time since the post-war boom.”

Certainly it’s a fair assessment, but no doubt I’ll be accused from quoting from a left wing rag.

MadKat of Melbourne says:

05:09pm | 08/09/11

Economist - what are you validating - I’m having fun with the fact that Peter thinks EVERYONE is disappointed Australia is not in a recession. You know the generalisation that EVERYONE is disappointed - not SOME but EVERYONE.

Shane From Melbourne says:

02:30pm | 08/09/11

Australia IS a recession- a permanent break from reality….

LNP says:

03:09pm | 08/09/11

The liberal national party is very disappointed Australia is not in recession.

red dog says:

03:17pm | 08/09/11

According to Donald Horne , Australia went from ” The Lucky Country” to “The Unlucky Country” on September 8 1970.
America went from “The Lucky Country” to “the Unlucky Country” on September 11 2001 !

Andrew says:

03:22pm | 08/09/11

Madkat is disappointed that we are not in a recession as you cant say that the sky is falling in like you did yesterday based on the latest GDP growth figures for the June quarter.

MadKat of Melbourne says:

04:50pm | 08/09/11

Andrew - I’ve already pointed out to you what I think about the GDP yesterday - that it will fall again during the next couple of quarters - I don’t want to see it fall and will be disappointed for the country if it happens - thinking it will and wanting it to are two different things - let’s be mature and wait and see who’s right in the next couple of quarters instead of childishly carrying on the argument for days on end -

Andrew says:

05:18pm | 08/09/11

Madkat I was upset about everyone talking down the place when there was no need to, thats all.

Max, of Rocky says:

12:54pm | 10/09/11

Yeah, $200 billion in debt going up daily, Coal mines blossoming like flowers in a rose garden, lies to the people, pork barreling on a scale unheard of,    yeah,  best ever !
8-(