I’d have been happier if the AFR had been pouring out on its front page how hopeless the Rudd-Gillard-Rudd Government had been if they had done it at the time. The front page headline across the page yesterday, under a picture of the four top members of the new Government, read as follows:
Poll confidence rebound stalls
Then above the headline it says, “RBA worried about business investment”.
Does the AFR not know that all this is Labor’s handiwork? That what you see is what they did? That trying to fix this mess is the work of years and will require patient persistence. These are page 10 stories. It is not about “the Coalition’s post-election economic honeymoon is already fading” which is the opening phrase of the article.
What they did not do is place these words at the front which are instead found in para 5:
Reserve Bank of Australia deputy governor Phillip Lowe reassured Australians that all the ingredients are in place for a broad economic rebound.
Might have changed the sense of where things are going, specially since consumer sentiment is the worst of all economic indicators. It’s not a Labor government however so all the news but perhaps a different balance. But what got me was why the deputy governor thought things were about to improve:
Record low interest rates and a weaker dollar meant that Australia was well placed to weather the end of the resources investment boom, he said.
What can I say. Record low interest rates will slow recovery not speed it up but in the low state in which economics has fallen, how is anyone to know.