If it didn’t matter so much it would be amusing watching L-plate Treasurer Josh Recessionberg make no sense, via the AFR:
Treasurer John Frydenberg has endorsed Future Fund chairman Peter Costello’s call that further interest rates cuts won’t boost the economy all that much and insisted the government is developing a productivity agenda.
“Peter Costello is absolutely right that it’s a law of diminishing returns once you start to reduce interest rates below a certain amount, the impact on the economy is reduced,” Mr Frydenberg said on Friday.
…”Our view is that the hard reforms that Peter is talking about, the productivity reforms, are very much on the government’s agenda,” Mr Frydenberg said.
Oh Joshy. I know it’s de rigueur to hide your lies in plain sight but even the Recessionberg rictus is cracking under that kind of mendacious weight. It’s clear that the Government has only one economic agenda and it is to lower interest rates as far and soon as possible via running fiscal policy too tight into an economy operating at stall speed:
This is compounded by the absurdity that the Government’s only other “reform” effort is to corrupt financial regulators, to throw bottomless amounts of fiscal support behind house prices and to run mass immigration at out of control levels to deliver another round of house price speculation without the slightest care that doing so also suffers from the “law of diminishing returns”.
Moreover, it is doing all of these things having openly trashed the structural reform agenda which Labor mostly took to the last election:
- scrapping negative gearing and/or ending the Costello capital gains discount for property to end vast capital misallocation into house price speculation;
- scrapping massive Costello superannuation subsidies for the aged;
- hugely boosting R&D and competition reforms across an overly concentrated Costello economy to end rentier profits;
- apply a resource super profits tax;
- GST reforms to increase Costello inefficiencies;
- add reforms to the broken Costello horizontal fiscal equalisation system;
- plus sink the AUD, triggering an equally large surge in national competitiveness;
- to enable massive Budget savings that deliver huge income and corporate tax cuts that boost profitability and participation;
- ending in a big productivity gain shared equally by labour and business.
Recessionberg is the smiling dufus treasurer.