I know what he means, but I wish the Treasurer would save the hubris for more certain times. Still, he does have a point:
Treasurer Joe Hockey has ramped up his criticism of “complete fools” doubting the strength of the nation’s economy as he declared Australia was a “long way off” from a housing bubble burst.
Mr Hockey yesterday slammed economic doomsday sayers as “clowns” after soaring resource exports and the housing boom delivered the best GDP growth in a year.
Asked today who the clowns and fools were, Mr Hockey replied: “You can just have a look around, just have a look around.
A market economy just runs itself if you let it. There’s not nothing to do, but there’s a lot less than our textbooks and regulators seem to understand. We are far from out of troubled times, but the trends so far look good.
AND NOW THAT I HAVE READ THE AFR: They are a bit more negative, like a whole lot more. I’m not a fan of GDP for many reasons – see Chapter 9 – but the adjustment process towards lower real incomes is part of what is required.
“Australia’s living standards are falling on a sustained basis for the first time in 50 years – this is not a short-term trend,” says Andrew Charlton . . . an ex-advisor to former prime minister Kevin Rudd.
How he knows what will turn into a long-term trend from a data point or two I will leave to him. But anyone who thought there would be no aftershocks following the stimulus and the NBN and all of the other useless value-negative projects backed by Labor should really keep their opinions to themselves.