The Australian economy is tanking.
A large part of the cause is government spending, and yet Labor treasurer Jim Chalmers – who still hasn’t been held accountable for hurling the domestic terrorist label at Peter Dutton – believes all is well.
For perspective, Australia is 0.8% of GDP growth away from another Labor party treasurer telling Australians it’s the recession “they had to have.”
It’s that bad, The Sydney Morning Herald, when recalling data from the Australian Bureau of Statistics, likened the state of the “Life’s easy under Albanese” economy to Paul Keating’s 1990-91 fiscal disaster.
The only reason, SMH opined, that the figures released this week were slightly positive, is because Labor is inflating them.
Rather than motivate businesses to build growth, Labor has chosen to further bloat the bureaucracy instead.
In sum, as this bureaucracy increases, we’re seeing Australia’s economic potential decrease.
Despite this, like all socialists hooked on its Kool-Aid, Chalmers appears convinced that propping the economy with smoke and mirrors, will eventually save it.
Labor’s WEFtist Woke obsession with Net-Zero puts the risky renewables gamble at the forefront of this spending.
Forcing Australians down the road to economic oblivion is directly related to Australia’s unnecessary energy abortion.
Another Faustian deal is Albo’s housing commission 2.0 revival.
While promising only a 2% deposit for new home buyers, government will spend big in order to boost home ownership, by sharing the deed and taking a cut of the equity, when the house goes up for resale.
This is on top of the Government getting the 10% GST off of the sale price.
With lower equity, and an inability to renovate without government permission, the probability of using equity to buy another property is significantly lower.
The devil is in the detail.
The glaringly obscene reality here is that Labor will eventually run out of other people’s money – to slightly rephrase the great Margret Thatcher.
So sour is the Socialist spin, the leftwing SMH, apart from getting giddy over Chalmer’s “climate crisis” crusade, they’re refusing to ingest it.
Quoting EY chief economist Cherelle Murphy, SMH declared the Australian economy, a “sad economy without much hope.”
Commenting on the ABS figures, Chief Economist for Tax Payers Alliance, John Humphreys argued that Australia wasn’t avoiding a recession, it is already in one.
Offering his own assessment in a thread on X, Humphreys wrote, “Household spending has actually gone backwards for the 2nd quarter in a row, and private investment only edged up 0.1%.
“In contrast, government spending increased by 1.4% and government investment increased by 6.3%.
“The bureaucracy has managed to dodge the recession that is hitting the private sector,” he added.
“This is particularly worrying because private investment is the main driver of productivity growth and sustainable economic growth.”
Chalmers has “attempted to paper over the recession with handouts, bigger government, and high immigration, but none of these will boost GDP.”
Australia’s economic salvation is relatively simple, he concluded, “Cut income taxes [tax reform], reduce regulation, and unlock cheap energy.”
Surprisingly, Crikey seemed to agree.
Contributing their own assessment, although subdued, Crikey described the economic situation under Albanese and Chalmers, as “grim and serious.”
Crikey lacking its usual love for Labor – whatever the weather – is another sign that Labor’s spin is wearing thin.
They even cited LNP shadow treasurer, Angus Taylor, saying,
“This outcome reflects the complete and utter failure of Labor’s big Australia, big government policies.”
When even leftwing bullhorn, Crikey are reporting on Labor’s wrecking ball mishandling of the economy, you know it’s probably even worse than what’s being reported.
In April 2022, I warned, vote for Albo, get a Joe Biden.
Labor offered worse than what we already had.
They’ve proven this to be true.
Rather than bring calm to COVID’s Communist chaos, they’ve escalated the chaos instead.
