Which, when you think about it, is quite an achievement in itself!
About a fortnight ago,Treasurer Wayne Swan was crowing about the Labor government’s achievements during his Mid-Year Outlook.
However, the general consensus seems to be that it represented a “missed opportunity”.
The easiest thing for any treasurer to do is spend money. But with Business facing serious capacity constraints, and inflation looming in the near future … this was his chance to rein in any dubious government expenditure.
Therefore instead of basking economic glory, basically created through our position in Asia … now is the time to actually take some tough political decisions.
Let’s see some backbone, as far as cancelling several unnecessary (and unaffordable) programs promised in the lead-up to the election.
Things like the “Cash for Clunkers” for example.
Failing to do so will only shift this responsibility squarely into the RBA’s court. And that simply means interest rates will need to rise faster (and higher) than would have otherwise been necessary.
Procrastination will prove to be a very expensive teacher.