Trumpists call it the “deep state” or “swamp”. In Australia, it takes the form of grovelling economists seeking access no matter who is in power:
Jim Chalmers must confront his “timidity” on tax reform and rein in Labor’s “radical” industrial relations agenda, to deliver higher living standards and rival Paul Keating and Peter Costello’s records as treasurer, leading economists say.
The Australian Financial Review conducted an exclusive survey of 10 economists to seek their views on Dr Chalmers, asking what the treasurer had done well, where he could have performed better and what his priorities should be for the Albanese government.
Dr Chalmers received an average score of seven out of 10 for his performance, ranging from a mark of 5.5 from former Keating-era economist Stephen Miller to “8 or 9” from Canberra-based director of Outlook Economics, Peter Downes.
Here are the ratings:
- Michael Blyth 7.5
- Cassandra Winzar 7
- Warwick McKibbin 8.
- Richard Holden 7
- Nicki Hutley 6.5
- Steven Hamilton 6
- Stephen Miller 5
- Saul Eslake 7
- Stephen Anthony 6.5
- Peter Downes 8.5
Judging a transparently failed treasurer by your access to a meal ticket is a typical swamp tactic.
Chalmers has delivered the worst crash in living standards of any modern treasurer in just two years:
While some of this was unavoidable, it was made considerably worse by Chalmers’ blundering in energy and immigration, which has both suppressed incomes and boosted inflation.
The following chart does not include spillovers from the energy shock, so it is conservative:
That’s right. Were it not for Chalmers’ blundering, inflation would already be back in the RBA 2-3% range, and interest rates would never have had to paralise households.
The only person making any sense is Stephen Miller, who said, “there appeared to be “timidity” on meaningful reform”.
With swamp economists like this in their corner, Aussies sure don’t need enemies.
