An honest reporter!!

You can find this same video at Andrew Bolt and Tim Blair because it truly is incredible. An honest piece of reporting, at The Guardian yet, unimaginable in The Age, The SMH or at the ABC. The reporter went to find out what working class Australians really think of Rudd, they told her all kinds of negative things about the PM and the ALP, and then she reported what they said.

I keep trying to think of some positive piece of good government we have had from six years of Labor and I cannot think of a thing. Others may wish to help me out, but aside from spending oceans of money on stuff that is entirely directed at the charity end of the specturm of social expenditure, there is nothing there. Most of what they have done has been directed towards making it harder to earn a profit in business, from the Fair Work Act to the mining tax.

I get the Coalition point that they will pay for their programs through the increased tax revenue that will be generated by a return to stronger private sector growth while a serious proportion of the waste we now find in place is wound back. That’s the sort of thing that tends to work. It’s gotta be better than now.

My worry is that after six years of the present government the fear will remain that even if we elect the Coaltion, in six years time this same mob might be back again, to pick up where they left off. There will, by then, be a better bottom line on our fiscal position which they can once more begin to lay waste.

Three more like the last six is not a great election message

The folks over at The Age and I suppose it’s the same at the SMH are impervious to common sense. But for me, the best Coalition ads are the ALP ads that feature Kevin Rudd. Three more like the last six ought to scare anyone. Seeing him there in the flesh is Night of the Living Dead. I just wonder what the features of the record he is running on he would like to highlight. A more miserable looking lot than the campaign workers standing behind the PM it would be very hard to find.

Seriously conservative

An article on the seriousness of Margaret Thatcher filled with much good advice for Tony Abbott. I think he gets it anyway, but this seems particularly useful:

Seriousness is the central truth of Margaret Thatcher and the leitmotif of Charles Moore’s superb biography.

Ferdinand Mount makes a strong case that “will” was her main quality in his scintillating review in the Times Literary Supplement. Will, determination, fortitude—these were certainly powerful motors of her life and personality. But they were always controlled by realism, practicality, and necessity. And this combination was vital to her success, because her political views were shaped by a strong patriotism and such traditional conservative virtues as self-reliance—virtues that leading Tories in her youth were already discarding as unfashionable and repressive. Therefore, she not only had to fight, she had also to maneuver to advance herself; and she had to work unremittingly to master briefs that she would often be presenting to a skeptical audience. The net result was a deeply serious woman.

The Stimulus that Made Australia Far Worse Off than if Nothing had been done at All

I have an article at Quadrant Online where you don’t get to choose the heading and which is called, The bill comes due for Rudd’s quack cure but does truly get to the heart of the matter. Every so often, I’m sure, a government will actually spend money in a sensible way and legitimately take credit for some positive outcome that hastened things a bit if left to the private sector. Governments are still dining out on their achievement with the Snowy River in the 1950s as if that is the typical outcome to be expected from public expenditure. But in the sixty or so years since it is hard to come up with great expenditure achievements by governments. I’m sure there are some outside the roads and airports variety but I just can’t think of any offhand. The Pink Batts, School Halls and NBN expenditures are more typical of what you get from government.

But let me draw your attention to the conclusion of this article which discusses the actual reasons for Australia’s soft landing which followed the same recession found everywhere else on the globe. Such nonsense to argue that we avoided recession but that’s the myth. My own take on what made things better list the following:

As for the reasons that the downturn here was not as bad as it has been elsewhere, there are four parts to the explanation that I can see.

There is firstly the extraordinary fiscal situation the government inherited. We not only had no deficit, we actually had no debt. Australia was the only country in the world not to have any public debt whatsoever, a situation that it is almost impossible to imagine returning any time soon.

There was then the mining boom built on the back of the Chinese stimulus. That has gone, in large part because the Chinese must now themselves deal with the problems that their own stimulus created in their own economy. But we have added to our own slowdown in mining through a series of policies that have made miners more reluctant to invest in Australia.

Third, our banking system was almost entirely untouched by the financial crisis which spread internationally due to the ownership of various toxic assets generated in the US financial system. Our banks were fine, so Australia had no problems of this kind to overcome.

And lastly – but this will make little sense to most people – the RBA kept interest rates up rather than pulling them down. No quantitative easing in these parts with the result that the national savings we generated were used more productively than elsewhere. You can’t stop governments from squandering what they squander, but at least the private sector was kept on the straight and narrow.

Interestingly, there is an article in The Australian today which touches on this same question. David Crowe has an article titled, The stimulus we didn’t really need which lets Rudd off easy. The title should be “The Stimulus that Made Australia Far Worse Off than if Nothing had been done at All” or something along those lines. Interesting, there is a four point discussion of the same thoughts I wrote up at QoL in which Warwick McKibbin mentions China and our banking system’s strengths, but then mentions the fall in the dollar which I have my doubts about and then this one extra.

Because where we differ is over interest rates. Sure they were brought down during the GFC although only late in the day but then they were raised again and then again and then kept relatively high. Those low interest rate Keynesian types will be the ruin of us all. Thankfully our RBA governor didn’t buy into any of it.

What side are you on?

Reading the AFR with its decideldly pro-Labor tilt is a quite irritating moment in a day. The front page lead today is “Treasury warns of budget blowouts” which is not about the past and Labor but about the future and “a warning to Australia’s politicians and voters” in general and the Coaltion in particular. Thanks for the warning but where were you guys at Treasury when you were designing the last six budgets and then covering up for the Government.

But just in case we were worried about irresponsible actions by politicians, the front page helpfully points its finger in its story across the top of the page: “Hockey rejects surplus date”. And as an aid to making sure the point is understood, there is in smaller print, “Labor demands Coalition costings”. Did they indeed? Well we’ve already seen Labor’s costings as noted in the smaller print as well which reads “$30bn budget deficit confirmed”. And who, might it be asked, is responsible for that? Doesn’t say, but it does warn that if the Coalition doesn’t implement Labor’s tobacco tax then the budget hole will be their fault.

There is then another story, “all at sea over the future of the GST” which tells the AFR’s readers that OK, maybe the Coaltion has promised not to raise the GST this time, but Arthur Sinodinos had said ten days ago that this promise is for the first term only. I take it a tobacco tax immediately is better than a very improbable GST rise in three years time since Abbott has made it clear it will not happen. Does the AFR perhaps think it is still dealing with Julia “there will be no carbon tax under the government I lead” Gillard?

And it would be derelict for me not to mention the article splashed across what is described as a news page on page 4 in which the ever reliable Laura Tingle has written, according to the headline, “Abbott has a fiscal gap left to explain”. Whether there is anything for Rudd to explain is left unexplained.

There is, however, one story that does shift the other way, this on page 2, and which really is an actual news story. Its headline: “Business conditions worst in four years”. What that has to do with the election no one at the AFR is prepared to say.

Falling below the minimal level of truth

There was an interesting article the other day by Bruce Thornton which he has titled, “Lies, Democracy & Obama” but whose central point applies just as well here. He begins with a quotation from Jean-François Revel, a name wrongly disappearing into the past but whose books could be resurrected even more urgently for the present. This is the passage he took from Revel:

Democracy cannot survive without a certain diet of truth. It cannot survive if the degree of truth in current circulation falls below a minimal level. A democratic regime, founded on the free determination of important choices made by a majority, condemns itself to death if most of the citizens who have to choose between various options make their decisions in ignorance of reality, blinded by passions or misled by fleeting impressions.

To which Thornton added, conflating his text from the first and last paragraphs:

If Revel is correct, the rapidly diminishing level of truth in our public discourse suggests that we are in dire straits. . . . Following Revel, we can say a healthy democracy is one in which truth is allowed to circulate freely and inform citizens so they can make the right decisions. But today institutionalized lies have more influence than the truth, with baleful effects visible all around us. This suggests that we are a sick culture, and our condition is worsening.

And Thornton is most emphatically not talking about the fact that politicians don’t always tell the truth but something that goes more deeply. And while he thinks of this as a feature of the left in modern politics, as do I, where it starts is with the media which can no longer be expected to willingly publish anything that harms the political prospects of the left.

Two stories, both found on the editorial page of The Australian on Wednesday, are prime examples of the problem. Both spooked me, and while it is ironic that I am criticising the media for not revealing the facts when I have found out what I know by reading the media, it is still shameful that these are, firstly, opinion pieces rather than news stories and then, secondly, that they are not being splashed across the news so that everyone is aware of what’s happening and those who are responsible made to explain themselves.

The first is a column by Janet Albrechtsen dealing with Penny Wong and the amounts of money she has signed off on while Minister of Finance. The Finance Minister is the gatekeeper for government outlays, making sure governments do not spend too much nor waste what they spend. Well, forget it. The facts so far as they are even willing to admit – and this doesn’t include all kinds of outlays that are kept off the books – are maddening. Of Wong’s performance, Abrechtsen writes in conclusion:

Not even a nice smile can save Wong from being remembered as the $106 Billion Woman and this nation’s most incompetent Finance Minister.

Oh but yes it can. I read Janet’s article and maybe you read it but who else and who has shown that they care? Is it the scandal that it ought to be? Is there a hue and cry about just how badly she has managed her portfolio? Will anyone remember a day from now never mind when the new government tries to fix what is now seriously broken? Not a chance. Wong will walk away with not a care in the world, her credibility intact, remembered for her slick public persona, not for her disastrous role as the Minister of Finance.

And then we have a second opinion piece, this one from a surprising source given the contents. This is by Kevin Morgan who was “the ACTU member of former ALP leader Kim Beazley’s advisory committee on telecommunications”. And what he is trying to do is blow the whistle on the catastrophic hole in which the National Broadband Network is placing the finances of our country never mind the damage it is doing to our infrastructure. A report on the NBN has been given to the government and everyone knows it, but there is no outrage that is being suppressed nor a intensifying demand to have this report released NOW. From the article, where I have conflated the first and last paras:

KEVIN Rudd claims there is a conspiracy surrounding the NBN. He may be right. But it is not a conspiracy in which Rupert Murdoch seeks to bring down the Labor government to sabotage the NBN. It is a conspiracy to hide from the voters, until after the election, just how bad are the finances of the NBN. And the dire straits that the NBN is in can be sheeted back to the deals done by one man: the Prime Minister. . . .

Now Rudd’s back telling us, as he repeatedly did on Sunday night, that his visionary NBN is going marvellously. Well if it is Rudd will have absolutely no problem in immediately releasing an update of NBN Co’s corporate plan that is sitting on the desks of Penny Wong [sic] and Anthony Albanese, the two NBN shareholder ministers. To do otherwise would be a conspiracy and Rudd wouldn’t want to be accused of that.

Rudd cannot engineer this conspiracy of silence on his own. He needs help from the media who are apparently willing to go quiet on a program that is ruining their very own country – the very country they live in themselves – in order to maintain the most incompetent government in our history but so far as they are concerned a government of the right political shade. We have fallen below Revel’s minimal level of truth, well below, and we will pay for this dearly and for a very long time to come.

Who do you trust? I mean, seriously.

My wife spoke to me this morning about picking up a copy of the AFR while having coffee somewhere because it was the only paper and she remarked, in quite some astonishment, that it seemed to be anti-Abbott. So I have had a look and sure enough the front page is filled with the latest Labor meme, how is the Coalition going to pay for all of its promises? From a party which last ran a surplus in 1988, and only for a single year, that is about as ridiculous as it gets. If getting a surplus is the issue, come on, who would you really back?

But what also caught my eye was the story above the main story across the top of the page which ought to be more to the point about where this economy is heading. The first para:

Labour market experts say a dramatic three-year wage freeze at car maker GM Holden could trigger pay pauses elsewhere as rising job insecurity and low inflation press down on Australia’s high cost structure. [My bolding]

Some economic management we’ve had! I listened to the debate and there was nothing offered by Kevin Rudd that made me think he even understood there is a problem never mind that he had solutions for what ails us. In fact, my impression was that he had no idea what do to about any of the things that need fixing.

The Coalition is infinitely more likely to reduce wasteful spending, improve our employment prospects and assist in the raising of living standards. Why is it the Coalition, then, that is being asked to show its creds on restoring the budget to surplus?

An exercise in ideological dogma

There are large elements in the ALP who are all but begging the community to give it a spell in opposition so that it can do a bit of renewal. They do not want Rudd returned as Prime Minister and I am talking about former members of the cabinet and even about former leaders. What does Julia really think? She’s not saying but how hard is it to guess. But there in the AFR this weekend we find Mark Latham who is being as explicit as he could possibly be. He is here discussing how unfit to govern members of the Parliamentary members of the ALP are. This is what he wrote:

They saw issues as an exercise in ideological dogma, instead of problem-solving. Learning and adapting were foreign concepts.

And as much as it’s true about the Parliamentary party so much more is it true about those who will vote them back no matter what. The rustidons as one comment had it. What to they care about, jobs, education, health, border security or our future prosperity. Their self identity would disintegrate if they put a number n-1 against the name of a Coalition candidate with a Labor candidate at n. But to go back to Mark Latham again in his column, this is, I think, exactly right not just about many in the ALP’s Parliamentary party but about many of their supporters as well:

When the world fails to comply with its ideological template, it uses ignorance as a way of keeping its beliefs intact.

There are queues of disaffected Labor Party people who want supporters to walk away this time but these people won’t do it. They just won’t do it and they make up near on half the voters in the country.

The 49%

The real question is who are these 49% that the polls say still intend to vote for Labor? Unimaginable really. But I do have an article at Quadrant Online that looks at the election as we enter into our first full day. And what I discuss is the nature of the ballot with the natural constituency of a Labor party made up of those who live by the words they use rather than the goods they produce, those who work for governments at every level (including those crony capitalists) and those who live off the plundering of incomes by the state. It’s a pretty big coalition and it is getting harder to beat every year as their numbers keep growing by political design.

The QoL article is mainly about an article I did just after the American election in Quadrant itself. And here is the point:

The Left’s incompetence and bad government are never enough to ensure its defeat. And the more that outdated notions of personal freedom and independence are moved downwards in the scale of collective values the more difficult a party of the Left will be to dislodge. The ALP has not yet lost the next election. Barack Obama, with hardly a success to his name, is still the president. Polls or no polls, who the Australian prime minister will be a year from today is yet to be determined.

This will be a tough election. Why that is, however, I cannot tell since the allure of the ALP is invisible. But there are plenty on the other side who see it exactly the other way round.