Poirot,

Do you also think Aust is going well?

I read The Economist occasionally, but dont take it as gospel.

I cant see how Aust is going to prosper in coming years wihtout major and painful reform. It has stuff in the ground, which will offset its decline for some time yet. But as far as other sectors, i hold much less hope based on recent trends.

Hopefully the Coalition proves up to the task. It is time to give Labor the flick.

Chris,

I'm not that knowledgeable on economics.

My take is probably simplistic in that as far as I can make out, the West lives wastefully. We don't manufacture our own stuff anymore, for the most part, and rely on China to make, not only things we deem necessities, but also oodles of cheap crap. I read that cheap Chinese imports have helped to keep the US economy viable.

I can't really see the Coalition altering the fundamental status quo to any great extent....as far as I can make out, things haven't really changed since Donald Horne reflected that:

"....Australia's economic prosperity was largely derived from its rich natural resources...." and that Australia "....showed less enterprise than almost any other prosperous industrial country."

http://en.wikipedia.org/wiki/Lucky_Country

AA,

You should try some research sometime, a hint is that cherry picking information is not research. Maybe even opening an book on economics for the first time would be enlightening.

The more we look at the data and Labor's poor management, we realise why one needs to be an economic illiterate to think Labor is competent.

A prime example is: "Compare December 2012 with now. Yes, the shift in trend participation rate is only 0.2. But that is actually 103 000 new jobs. Not bad."

In this time unemployment went from 5.1% to 5.5% which means that the net percentage of people employed dropped 0.2% or an extra 100 000 unemployed. Certainly nothing to be proud of.

Note that in Canada, the US and many other countries the unemployment is coming down whereas ours is going up.

The first couple of years Labor could ride on the back of what Howard had established. Now the results of labor's handiwork is starting to come to the fore with restaurants and shops closing on Sundays or permanently due to the rigidity of the labour market, and major projects being cancelled left right and center because of militant unions.

Greetings again,

@Poirot, re The Lucky Country.

Yes, excellent books. Both.

Since then, economic reforms in the mid 1980s lifted Australia’s performance. From about 20th in 1982 to 6th-ranked in the world by 1996.

Unfortunately in the next period the economy was poorly managed. Australia slipped back in international rankings to 11th by 2007, despite the enhanced competitiveness and growing trade with China, rising commodity prices, and windfalls from the sale of assets such as Telstra.

Most blunders of that period were little publicised. But were highly damaging nonetheless. These include losing $4.5 billion gambling in foreign exchange markets, selling most of Australia’s gold reserves at near rock bottom prices just before the price rose spectacularly and squandering billions derived from assets sales and the resources boom.

Fortunately, Australia then got the settings right during the GFC. And you are not only on top of world rankings now, but ahead by a clear margin and forging further ahead each year. The rest of the world wants to know how you do it!

You have just had all three credit ratings agencies give last week’s Budget a huge tick. Unemployment and debt have both dropped back in the latest figures.

And your productivity has risen for seven consecutive quarters:

http://www.tradingeconomics.com/australia/productivity

Yet there’s a global downturn hurting most other nations. Including all those that export loads of iron ore and those that have vast exports to China.

As Joe Hockey says, “Just extraordinary!”

@Shadow Minister, re “In this time unemployment went from 5.1% to 5.5% which means that the net percentage of people employed dropped 0.2% or an extra 100 000 unemployed.”

No, not between December and April, SM. Those numbers aren’t right. It was about 22,000 extra jobless. No?

Re: “Note that in Canada, the US and many other countries the unemployment is coming down whereas ours is going up.”

Not quite right either, SM. Coming down in the US. Going up in Canada. Unchanged in Australia. Unless you cherry-pick really short or really long periods – in which case you can make it go wherever you want.

Cheers,

AA,

Both Fitch and Standard and Poors have issued warnings that the AAA credit ratings may be threatened unless Labor brings it deficits under control.

The restoration of Australia's AAA rating came after six surplus budgets were delivered. In 2003, S&P said Australia "has one of the strongest fiscal positions" and its reinstatement of the AAA rating paved the way for Australian companies to borrow funds at a cheaper price.

Australia already had a AAA rating in 2003 from the single most important agency, Labor then set about pursuing AAA rating from other agencies as a fig leaf for its spendthrift policies.

It is no wonder that Swan is considered the most incompetent treasurers in living memory.

Yes, SM you can rest assured that most agree with your opinion. If it was not for the Coalition also reducing much govt debt, albeit the beneficiary of more prosperous times fuelled by easy credit, priatisation, and better terms of trade over time, just imagine what Aust's net debt position would be.

Most Aust's know this.

I note no bounce for Labor in todays' Galaxy poll; i thought Labor would close the gap a bit by the election, but it looks like most people have had enough of its lack of competence and direction and can see through Aust's luck of having a lot of stuff in the ground.

Thankfully we live in a wise country, albeit we need to implement much change, dont you agree AA?

Again, is not liberal democracy the ultimate arbitrator of a govt's performance? This seems to be a question that many a Labor supporter does not like to answer when things are going bad.