Hoodwinked!

JeffDunne

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Thread starter #1
Costello warns on surpluses
By Tim Colebatch, Josh Gordon
Canberra
October 14, 2004

Treasurer Peter Costello has cast doubt on Treasury projections of four years of good growth ahead, warning that Australia faces big risks and its growth could slow.

In a stunning shift four days after an election won on economic issues, Mr Costello said Treasury's forecasts were "optimistic", and if high oil prices were sustained for a year or more, they would slash growth in Australia and the world.

He defended the campaign pledges, which spent $14 billion from the budget surpluses estimated by Treasury before the election, saying the public expected new spending policies in an election campaign.

Treasury's estimates of surpluses assumed growth of 3.5 per cent a year over the next four years. But while the Government had now spent half those surpluses, the Treasurer disputed the assumption on which they were based.

"I think the Treasury forecasts are pretty optimistic", Mr Costello told the ABC's The 7.30 Report. "They assume uninterrupted growth for the next four years. I am more cautious myself," he said.

"I think there are big risks out there. Anyone who assumes that Australia has in the bag 3.5 per cent in the next four years in the current international climate is pretty optimistic."

He said industrial relations reforms could lift profits, but warned they would be limited without state support.

But Mr Costello yesterday welcomed figures showing a 3.5 per cent fall in personal borrowing in August. "Within incomes remaining strong and consumption easing from high levels, it may well be that households are strengthening their balance sheets," he said.

Australia's international competitiveness, meanwhile, is slipping because of a poor savings record and a stronger dollar, although the nation has never been wealthier.

A global survey of 8700 firms by the influential World Economic Forum concluded that, out of 104 countries, Australia was the 14th most competitive nation in 2004. A year earlier Australia was ranked 10th. Finland came first, mainly because of the high quality of its public institutions, culture of innovation and ability to adopt new technologies. The US was ranked second, Sweden third.

The Australian Industry Group, which ran the survey in Australia, said a poor savings record and the rising value of the dollar were to blame.

"We clearly need to do more on tax rates, compliance and labour deregulation if we are to effectively respond to the increasingly competitive business environment in the years ahead," the group's chief executive, Heather Ridout, said.

Australia fared particularly badly in terms of economic stability, achieving a ranking of 33rd.

The results are based on judgements about the economy, the quality of public institutions and the level of technological readiness and innovation.

However, rising house prices and share market gains mean that, as a nation, Australians have never been wealthier. Private wealth grew 18 per cent over the year to June, hitting a new high of $5.01 trillion, according to figures from the Bureau of Statistics and Treasury.
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Anyone feeling a little silly now about their vote?

Guess not, most voted for these scumbags knowing full well they are lying, deceitful and self-intersted.

But I bet you didn't think they were lying about the economy! :D
 

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- PC -

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#2
Ok who can do a Gomer Pyle '' surprise surprise surprise''

Only surprise was it took 4 days...I was going to come up with some angry retorts and all ...then I realised NOTHING I do will change it

Anyone want to join my Apathetic Party of Australia ...nah dont bother I couldnt be stuffed starting it
 

coasting

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#3
It wasn't hard to counter the economic arguments that the liberals put forward. Mark Latham was just incapable of doing it. He is a DUD.
 

Mr Q

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#4
Meh. Its just another lie being shown to be a lie. Sort of like all those WMDs in Iraq. No point in jumping up and down about it, we've got three more years of them to suffer before we can think about swapping to the other bunch of liars.
 

bunsen burner

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#5
JeffDunne said:
Anyone feeling a little silly now about their vote?
Not at all.

Guess not, most voted for these scumbags knowing full well they are lying, deceitful and self-intersted.
Whilst also knowing that the ALP are lying, deceitful and self interested.

So what's your point?


But I bet you didn't think they were lying about the economy!
Course I did. I've always believed that interest rates will rise no matter which govt and also believed that the economy will drop off. But in the same respect I have also always believed that whatever the situation, the Coalition would be better able to manage it than the ALP.

That's what a lot of people like yourself have trouble grasping - that many speculated (and rightly so) that the Coalition are better placed to handle the economy than the ALP.

What did you expect? Costello to tell everyone on the eve of an election that the future mightn't be as rosy as it has been?
 
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