What Was That About The Sky?

By AR - One of Kevin07's favourite trite sayings prior to the election was, "John Howard would have you believe the sky will fall in if we sign Kyoto / have wall-to-wall Labor / elect trade unionists / elect an inexperienced team / say sorry / etc etc". It was a winning tactic because Kevin07 was elected and now he shows us what the sky falling in actually looks like.

Responding to the Reserve Bank decision to raise rates by .25% today, Kevin Rudd holds a joint press conference with Treasurer Wayne Swan and says, "The tough job of balancing the family budget just got a whole lot tougher... there's no such thing as a small interest rate rise... this one will really hurt... inflation is the highest for 16 years... we have a really tough job ahead."

Normally politicians stay neutral about bad news because they know negative spin can exacerbate problems. John Howard knew this but was made to pay for his refusal to comment about interest rates when Kevin07 painted him as "out of touch with working families". While he paid politically he was doing the right thing - keeping government influence away from the RBA and not artificially adding to concern in the market place.

This pattern has been dumped by the new government. "This one will really hurt". The big problem with that statement is what can Kevin say about the next increase? This was the first official rate increase since the election and the government has handled it with something bordering on panic. Wayne Swan: "This eleventh rate rise in a row will be tough for a lot of families out there and tough for a lot of businesses. I can understand families will be angry." What comes after angry? Fury?

Kevin07 is sowing negative economic sentiment. I guess here's where we see if experience counts.

No comments:

Post a Comment

All comments containing Chinese characters will not be published as I do not understand them