With the stock market this month resembling an Irish dancer’s feet (and you’re free to read into that metaphor what you will – bouncing up and down, getting toey or plain old stinks), the economy seemed an appropriate target for this OUTinPerth’s political columnists this month. Here’s one member of the Liberals take on the economy…
Ouch!
Kevin Rudd and Labor will hurt your hip pocket and ruin the economic prosperity you are currently taking for granted. Labor’s economic foolishness will be painful.
It’s been 11 years since Labor was responsible for the economy and not surprisingly most of us have forgotten what is was like. Let me remind you: under Labor real wages growth fell by almost 2%, the average small business lending rate was 14.25%, inflation averaged 5.2%, government debt peaked at $96 billion and our national credit rating was downgraded twice.
What’s more, over the last 30 years interest rates have risen to over 10% under every Labor Government – under Whitlam (1972-1975) they were at 10.4%, under Hawke (1983-1992) they were at 17% and under Paul Keating (1992-1996) there were 12%!
Contrast that with the Coalition’s performance. Real wages have grown by almost 20%, the average small business lending rate is 8.9%, inflation has averaged 2.5%, government debt has been repaid in full and our national credit rating has been upgraded twice to ‘AAA’.
And your average mortgage rate has been just over 7%, almost 10% lower than when it peaked under Labor.
But things won’t change much under Labor I hear you say. Wishful thinking I say.
Independent research last month has shown that Labor’s decision to abolish workplace relations reforms will cost Australian workers and businesses and bring about a serious economic downturn.
The report found if Labor abolished Australia’s workplace reforms then a person on average wages with an average mortgage will be $4,063 worse off per year by 2011.
If that is not bad enough, it also found: GDP would be almost 5% lower (a $2700 reduction per person), business investment would fall by 5.6% (a fall of $11 billion), employment levels would fall by 2.9% (a loss of 316,000 jobs) and the cost of living would increase by 1.3%.
The increase in inflation would force interest rates to rise by 1.4% and your average mortgage payment would be $273 higher per month. Australia’s ranking against world GDP per person would also fall from 8th to 14th.
Why would you want to go down this path at a time when Australia’s peak business body, the Business Council of Australia, predicts Australia is on track to become the third most prosperous country in the world by 2025?
If you don’t believe me, then look around you. On the 15th of August, The Australian newspaper’s Paul Kelly wrote ‘Labor’s folly is industrial relations. This threatens the economic credentials of a Rudd Government and the risk is lethal: higher interest rates. Prominent Western Australian businessman Michael Chaney has said ‘winding back reforms would be a negative for the economy without any doubt.’
Recent rises in interest rates and the nervousness and volatility witnessed in the stock markets over recent weeks have only underlined the importance of steady, reliable, safe economic management as the bedrock of good government.
If you think Labor can be trusted with the economy, you probably also think Kath and Kim are foxy ladies. Ploise!
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Who are our mystery political columnists? Well, we can reveal… not much. They’re political insiders. Do we want them censored by their parties? Well frankly, no. Hence the anonymity. Passionate, queer party people all – they’re here to provoke thought, rant and rave and get us all in the mood for a bit of election biff.
