Treasurer Joe Hockey has put on a brave face after today’s national accounts shocker, telling Australians that things will get better in 2015 and beyond. From The Australian:
Disposable income has dropped for two quarters in a row. Asked whether parts of the economy now appeared to be in recession, Mr Hockey said: “No.” “Fundamentally we are endeavouring to stabilise the rise in unemployment,” he said.
“Importantly, we are seeing strong export growth”…
“I have no doubt 2015 will be better and beyond will be better than that,” he said…
He also repeated his call for shoppers to spend big over Christmas.
“Not just for Santa Claus but for Australia,” he said.
Sorry Joe, but the outlook is worse, not better. The great mining investment unwind has only just begun, the housing boom is likely to run out of steam over the next 12 months, and then the local car industry will shutter. All this will occur under the backdrop of falling commodity prices and terms-of-trade, which will continue to drag on national income and government revenue.
Your call to spend up big over Christmas also sounds incredibly desperate. Are you channeling Wayne Swan?
