Morrison unveils election secret weapon: property prices

Not very secret, really. All he has, frankly. All he ever had. Behold the Real Estate Prime Minister!

Interest rates and petrol prices would be higher under a Labor government, Scott Morrison has claimed, putting inflation and cost of living at the centre of the government’s campaign targeting Anthony Albanese ahead of the next election.

As the Prime Minister attempts to pivot the political contest away from climate change, he used the inflationary pressures in the US as a warning against shifting from the Coalition amid the economic recovery from the Covid-19 pandemic.

Mr Morrison’s comments on Monday came despite Reserve Bank governor Philip Lowe – who will deliver a speech on inflation on Tuesday – playing down the risk of inflationary pressures to the Australian economy in recent weeks.

“Australia’s economic recovery has to be secured by people who have a track record of economic management,” Mr Morrison said during a visit to western Sydney on Monday.

“Otherwise, you’re going to see petrol prices go up. You’re going to see electricity prices go up. You’re going to see interest rates go up more than they would need to.”

So, interest rates, petrol prices and electricity prices have all gone up under the Morrison Government but they can be trusted more than Labor can?

Let’s do one at a time. The Coalition’s decade in government oversaw the largest rises in Australian utility prices in history. This was directly the fault of the government as it refused to regulate the east coast gas cartel that has been pillaging gas supplies on behalf of China since 2014. The resulting gas shortage drove both gas and power prices mad. And all Coalition governments have fought tooth and nail to prevent the only solution that we have had: the accelerated rollout of renewables.

I am not going to pretend that this is widely understood despite my best efforts but the last decade of Coalition energy policy has been ruinous. Surely the polity is not so stupid as to think otherwise.

On petrol, this is cyclical. But the latest round of price hikes is under Morrison not Labor.

On interest rates, a decade of Coalition governments has gutted interest rates by misusing mass immigration to destroy the microeconomics of the labour market resulting in collapsed wages growth. But Labor is equally committed to the same as far as I can see (which is no recommendation for it, either).

As well, Morrison has just overseen the breaking of the RBA’s yield curve control and 1% shunt higher in fixed mortgage rates. May he’ll be confronting a sharply slowing property market. Is that any basis upon which to claim he’ll keep rates lower?

There is no evidence to prosecute Morrison’s case. But fake and fear is the Morrison schtick and threatening house prices worked in his first election so why not again?

Houses and Holes
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Comments

  1. Haha.. “Australia’s economic recovery has to be secured by people who have a track record of economic management,” Mr Morrison said

    At least he’s not lying and stating good economic management.

  2. https://www.abc.net.au/news/2021-11-16/as-migration-restarts-does-it-hold-down-wages-for-everyone-/100620538

    Nothing to see there. Some CEDA big biz shill has done some “research”, and sits on it, but does spout nonsense they’ve grokked. Someone from Grattan agrees, sort of. Some migration agent just knows this stuff. Mention David Card, mention the nowadays ridiculous Nobel Prize for Economics, and there’s all the actual research CEDA has done. They’ve looked the guy up. Mention the 1980 Mariel Boatlift and Florida of that time and, snap, don’t have to say anything more. Except. Except that Florida and its Cubans then aint anywhere else at any other time, and it certainly aint Oz and now. Except that David Card did say more, that is, made caveats as many others also have. So cover all the bases in shallow blather and deflect to the “regions”.

    Next, spread it all over the ABCverse, and then take it to infinity and beyond coz there’s plenty of space and no limits, not here, not now, not in future. Let it grow. Boost it to infinity.

    At the speed of light propagate it. Pile it on with Rizvi, and any edumigration income dependent academic shill you can find.

    They’re not hard to find:

    https://www.abc.net.au/radionational/programs/lifematters/boosting-immigration,-edible-plants-and-kaz-cooke/13632048

    Noted:
    https://www.abc.net.au/news/2021-11-15/radical-surge-in-immigration-three-ps-of-economic-growth/100619410

  3. There is no evidence to prosecute Morrison’s case.

    I wonder if anyone in the MSM will pick up on that.

    • Fran Kelly and Peter van Onselen were making a good fist of this morning but they’re just preaching to the converted

    • Jumping jack flash

      “every country has its pipeline of inflation going forwards”

      This!

      You cant support 2 trillion dollars of [outstanding] debt and whatever it is now – 9 trillion? dollars worth of houses with an 80k average wage and $5 coffees.

      Something has to give. In the past it was interest rates, but now there’s none of those left.

      Its a global problem for sure.

  4. Perhaps not the dumbest country in the world, but surely the dumbest in the OECD? This will probably be confirmed at the next election, but jeeze I hope not 😔

  5. Isn’t there someone around who might understand that high house prices are not necessarily a good thing?

    • Whenever I chat to people they get it. Yet they also want their house to be the exception. It’s a clash of interests and when they weight things up they think it’s best for them that the prices stay high. I don’t blame them. That’s the message they’ve been fed for a few decades and that’s how the tax system is set up and that’s what our economy balances precariously upon. They’ve taken the property pill and now it’s too late to go back.

    • well, most people here believe we need rising prices (incorrectly called inflation) for a well functioning economy. Until you fix that mindset don’t expect anything else with housing.

      • Jumping jack flash

        Pray tell how incomes can rise without raising prices in a services and retail of imported items economy?

        Business owners are just going to go out the back and shake their money tree to pay their staff more?

  6. Totes BeWokeMEMBER

    Australia’s politics can’t be fixed until there’s an alternative to LNP. Labor need replacing; not given government. Never again IMO.

    Australia didn’t vote for higher house prices. Australia voted AGAINST Labor.

    LNP will win again.

    MB isn’t doing anyone any favours putting Labor as an alternative. They just aren’t. Just too many policies Australia consider deal breakers.

  7. Apart from Commander in Chief Dutton, the LNP are running a “up your nose” China policy that has merits.

    Dutton on the other hand, seems to prefer running through with Bayonets drawn. He’ll get tired with that given the numbers.

    Labor sadly, seems to want to roll on the back and wait for a nice Chinese scratch… Chinese wrist burn perhaps?

    This is a big issue & makes it difficult for me to decide which way to go.

  8. happy valleyMEMBER

    “Surely the polity is not so stupid as to think otherwise.”

    HnH – hate to disappoint you but the polity are so stupid and Scummo and his despiseable LNP will be re-elected in a canter.

  9. If you want to spook Labor voters, tell them the price of coffee is going up. For Coalition or swing voters, it’s electricity and petrol. Anyway, with WFH and the 5-km limit, I have visited a petrol station only twice in the last six months.

  10. Petrol is nearly at $2 a litre in NNSW.

    Labor, bring an EV strategy to the table with incentives and fuel standards.

    We won’t be talking about petrol prices too much longer.

  11. I don’t see any difference of note between the 2 major Parties on policies. Except Labor are into identity rubbish and being chummy with China. Liberals are the less DISGUSTING. Polls mean JS.
    Albanese and co are Morrison’s secret weapon.

    • Totes BeWokeMEMBER

      Exactly. Well said. Australians won’t vote Labor. That leaves LNP, until Labor’s replaced with a credible alternative.

  12. kierans777MEMBER

    Surely the polity is not so stupid as to think otherwise.

    People also believe the Herald Sun is a newspaper.

    • Jumping jack flash

      Only if incomes do. The people are saturated with debt and not eligible for any more.

      In the past they’d just cut interest rates, but these days they can not.

  13. Jumping jack flash

    Interest rates and petrol prices are pretty much outside of the government’s jurisdiction of control, but Joe public is unlikely to catch on, just like with most other things this government has said.

    Interest rates are set by the RBA as a result of the prevailing conditions of the rest of the world, and petrol prices are a function of oil prices which are set by inflation.

    Scomo missed the boat on the stimulus to keep us riding on the global inflation wave so now we will likely be crushed by it, and he now uses his gross incompetence for handing out free government money to the people to spend, and, you know, stimulate the economy, to rubbish Labor. Well played.