Paul,

I have looked hard for any reference by Menzies for a need for 10% unemployment, and would like to see some reference to this.

However, In macro economics it is generally accepted that within most economies that 100% employment is not possible, and that due to various factors such as skills mismatch, breaks between jobs etc, there is a "frictional” level of unemployment at which point increased demand for workers leads not to employment, but to wage driven inflation. 4% is considered normal, and when employment hit 4% under Howard, was when inflation began to be a problem with the economy starting to overheat.

Paul 1405, you must think the conservatives are very smart.

It would appear from your post that they must manage to arrange who will lead the labor party, to make sure they are a twit. Then intentionally loose an election, just so the Labor lot can increase unemployment for them. Obviously they are not too good at increasing unemployment themselves, but that is one of the few skill that Labor have perfected.

Surely it is easier, with their ability to run a prosperous economy profiting all, for them to just do that. In fact I believe they would do that, if it weren't so easy for the populous to forget how bad the last lot of socialists were, & elect them again. They have the help of a lot of young idealists, who have never seen a Labor government, & have to experience one to believe how bad they are.

Don't put much faith in an employment pick up in the US.
Recent information shows that those Credit Default Swaps are about to
hit the wall.
They are in effect an insurance policy against various investment
instruments defaulting. There is an organisation called
International Swaps and Derivatives Association.

A number of large US banks cannot meet calls on their swaps for bonds
etc in Europe and when the Greeks made an agreement for the 50% haircut
(as they call it), we would call it a loss, this organisation said it
was not a default so no payout.
This week they may have to decide that 70% loss is not a default, but
that is likely to generate massive court cases.
If they decide it is a default three major US banks will go down the gurgler.

Have fun !

Hasbeen, and what would you change to do better.

Job adds at a 2 year high. Investment money kicking in.

579, what you won't accept is that wages, along with every other expense, are paid from profits and, when profits are suffering, as they are with many businesses, large and small, wages take a larger chunk than was allocated.

Flexibility is a must if we are to survive.

Now you can believe what you wish as far as how strong our job market is, after all, it's a free world.

What will most likely be required is another round of stimulus, but I can't see this happening as labor is committed to a surplus.

Aother issue will be interest rate cuts, tipped by most to be around 25 points. Great news for many.

However, the banks are most likely to not pass this on, so what good will that be.

Where to from here.

Let's just hope the mining boom continues for many years to come hey.