It was predictable that the conservatives would angle their way towards Economic Darwinism.
Clearly they want those "on struggle street" (hows your listeners today Alan Jones) to work it out themselves.
With zero impact on small business and company tax down, of course the rhetoric from the business community is positive.
But those young families on average incomes will be hardest hit. Not only do they need to pay more at the bowser, but also have to deal with the inflationary effect on good and services. Their family payments are down, they have to pay to see a GP AND they somehow need to work until they're 70 before they can access their super / pension.
We can see where this is going. Their goals are transparent:
- put pressure on the states after cutting funding to health and education. This will force the states to rally and ask for the GST rate to increase. Then it won't be Abbott's decision, he will just carry out the wishes of the states.
- He clearly thinks that the minimum wage is excessive and that penalty rates should go. With the high cost of living, I don't know where unskilled workers are going to live and how they are going to get by.
- Youth unemployment has been hit hard. Kids under 25 will be relying on their parents. This might push some out to get a job, but in areas like the central coast or Tassie, figures are 40%. Abbott's solution is that these kids should be supported by their parents or move to regional areas that offer work.
It's interesting to watch the libs squirm when they are faced with economists who give facts why we are not in crisis. They trip over their own feet and mumble about the debt, which we all know is minuscule on the world stage.
Now we have the lib minions who smothered social media with their Ju-liar comments about the carbon tax - a tax which fundamentally is a good thing and taxes a slice of the super profits. Now these pelicans have gone underground about broken promises or claim that the libs had no choice considering the "basket case" they were left with. What rot. Every economist will tell you that it's fantasy to say that a good economy is one that is on surplus. All the roads that you drive on, the schools that you went to and the hospitals that you were born in were built by previous generations on borrowed money. Where would you be if they didn't do that ?
I worry about consumer confidence in the short term. Small businesses have had it tough for a long time and I'm expecting everyone to hit the breaks straight away.
In the long term and before the next election, punters will help build a war chest for Tony and Joe - which they will give away so they can get re-elected.
Don't you hate politics ?
