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Dutton, Tony’s Tradie Led Recovery And The Early Opening Of The Comedy Festival!

“I think the economy will come to a shuddering halt and I think the stock market will crash.

“I think once people realise how dangerous Labor’s economic proposal is I think they’ll be happy to see an election and deal with it.

“Labor’s essentially said they want to lower house prices and they want to increase rents and I think that would be a disaster.”
Peter Dutton, Minister For Immigration

No, Dutton’s statement isn’t really the early opening of Melbourne Comedy Festival. True, it could be funny to listen to Peter Dutton, but not if one remembers that this is the man who gets to make decisions about people’s futures. Yes, as Immigration Minister he’s just acting on the advice of other people and not really making many decisions for himself, apart from which colour tie is in fashion in Liberal circles this week. It’s very much like the Prime Minister, Mr Turnbull, although the PM does more than simply listen to what Cory Bernardi and the IPA tell him. He’s takes his own photos at the photo opportunity ensuring that the camera gets his best angle. You know the sort of thing, announce a review into the Safe Schools program, but take a selfie at the Gay Mardi Gras to show that you really do think that being gay is ok, even if you’re not allowed to actually stand up and contradict Cory Bernardi for fear of losing your leadership. (To be fair, Turnbull did say that we should all watch what we say and not resort to name calling… although it was unclear whether he was refering to George Christensen’s tweets or Bill Shorten calling Cory a homophobe!)

For a few days now, I’ve been to work out how prices can drop and rents rise. While it’s possible in the short term, any longer term trend would be contrary to the simple laws of supply and demand. Already there’s only a relatively small difference in the amount you pay in rent and what you’d be paying as a mortgage; if there was a sigificant downward shift in housing prices and a significant increase in rents, you’d be paying more to rent a property than to purchase the same property. Ok, not everyone would have the deposit but some would, and that’d be enough to stop a complete crash as well as taking some of the demand out of the rental market.

But let’s assume that Dutton is correct about the laws of supply and demand being suspended under Labor’s tax proposal and that we the people will be keen to rush to an election to deal with Labor and show our support for all those poor people with net incomes of $70,000 to $80,000 who’ll be excluded from purchasing their fourth property. How this leads to the economy coming to “shuddering halt” is another thing entirely. Note he didn’t say “slowdown in growth” or “lowering of the GDP”, he said “halt”. I’m trying to picture what a stopped economy looks like.

“Sorry, sir, you can’t board this economy.”
“Why not?”
“It’s not moving, Labor’s policy means that all economic activity has been halted for the forseeable future.”
“But how do I get to work?”
“No need, sir, there’s no such thing as work any more.”
“No work? How can afford to put food on the table?”
“Sorry, sir, food was part of the economy, there’ll be none of that either. Just think yourself lucky you already have a table because now that the economy’s been stopped, there’s no way that people can buy tables any more.

Ok, it was hyperbole. Not even Dutton could be stupid enough to believe that an economy could actually stop completely just because of changes to negative gearing. Of course, we all know that the stock market will crash under Labor because it did last time when they caused the GFC…

Under the Liberals, of course, the economy’s going along just swimmingly. Unemployment hasn’t been this good since 2013 and while Labor were in power then, the Liberals have had some really, really difficult things to deal with like the iron ore price not staying at record levels and slow wages growth meaning that tax revenue is down, but thanks to their policies our government’s debt is only growing at same rate as it did under Labor. If Labor had stayed in power they would have incresed the rate, because Tony produced a graph showing that they would. I mean, they’d have spent more on the NBN than the Liberals, because Turnbull spent more than Labor said it would, which just goes to show that you can’t trust Labor because the NBN is costing billions to set up as it is. Imagine how much more it would have cost if we were setting up one that actually worked!

Among the wonderful initiatives to grow the economy and to boost growth was the measure in last year’s Budget allowing small businesses with turnover of less than $2 million to claim an immediate 100% write-off for an unlimited number of tax deductions to buy assets like cars and machinery valued at less than $20,000 each. “Tony’s tradies” were going to give an enormous boost to the economy.

Unfortunately, it doesn’t seem to have delivered any long term benefits. While there was a spike in the month after the Budget, sales seemed to return to normal immediately after.

One might suggest that the supposed increase in jobs and growth has ground to a shuddering halt, but that’d be impossible because Scott Morrison is Treasurer and it’s only under Labor that the economy stops.

Actually, I better stop before someone starts accusing me of being left wing because I’m critical of the public relations arm of the IPA. Or the Liberal Party as it’s known in some circles.

And you’re right. There is no real need to make fun of the current Coalition government. They do it so well by themselves. After years of forming government by siding with the Nationals, they criticise Julia Gillard as “illegitimate” because she needed the support of others to govern. While arguing against quotas for women in Cabinet they tell us that all appointments are made on merit, however, a few months later they have a public discussion about whether Macfarlane’s attempted defection to the Nationals will mean that they’ll be entitled to another Cabinet post because while appointments are based on merit, the Nationals are entitled to a certain number based on a quota. And Barnaby Joyce is made Deputy Prime Minister by virtue of the fact that he leads a party who received about 4% of the votes. He is now part of a government determined to stop the ridiculous situation where some senators were elected when their party didn’t receive a figure approaching ten percent of the vote.

Yep, consistency is not their strong point!

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17 comments

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  1. Steve Laing

    Having run my own business (which I recently sold), it was bloody obvious that the small business bonus was an exercise in futility. But it is good that you remind us of it, as otherwise it will be quietly forgotten as yet another Liberal hype – all talk but no action. The fact that the Libs actually thought it would jump start the economy really shows how little they understand the reality of collectively the major employer in our economy. THAT truly reveals their economic credibility. Kick start the economy? My arse.

  2. babyjewels10

    It remains to be seen how many people once again, will believe the lies of the LNP this election.

  3. Stephen

    The usual compliant sheeple will fall into line and be herded to the polls by the main stream media to tick the box as instructed.
    Lets just hope enough of them bolt to make a difference.

    Stephen

  4. DisablednDesperate

    Spot on as always. Thanks for the bit about needing another party to allow them to get in. It drives me mad when I hear them malign the deal Gillard did when they are a “coalition”. Infuriating. All of it.

  5. cuppa

    Liars to their bootnails, and economically clueless.

  6. Lawrence S. Roberts

    Labor could win it and Bill is plugging away but the incumbent always has home ground advantage. Note how Western Australian A.L.P. politicians are scurrying back to Perth to get a ticket on the gravy train. The tea leaf readings in Canberra – not so good.

  7. diannaart

    Dutton is wholly entertaining and hilarious….

    … watching from the safety of another planet.

    For a few days now, I’ve been to work out how prices can drop and rents rise. While it’s possible in the short term, any longer term trend would be contrary to the simple laws of supply and demand. Already there’s only a relatively small difference in the amount you pay in rent and what you’d be paying as a mortgage; if there was a sigificant downward shift in housing prices and a significant increase in rents, you’d be paying more to rent a property than to purchase the same property. Ok, not everyone would have the deposit but some would, and that’d be enough to stop a complete crash as well as taking some of the demand out of the rental market.

    Thank you Rossleigh, confirmed my thinking.

  8. RosemaryJ36

    When I try to discuss politics with my children I am horrified to discover how right wing they are! They all have had tertiary education – not all entirely paid for by the tax payer – and they all have a comfortable existence from a financial perspective. But I – an avowed agnostic – DID have the benefit of being brought up as a (presbyterian) Christian. Do as you would be done by and the parable of the Good Samaritan are part of my mindset but I clearly failed to pass that on!

  9. Terry2

    “I think the economy will come to a shuddering halt and I think the stock market will crash.

    I lived in the Dickson electorate (Dutton’s seat) some years ago : things must have changed significantly for the people there to just go on voting for this this buffoon.

    Haven’t Labor got a drover’s dog to put up against him ?

  10. mark delmege

    As for tradies – I’ve never heard of an import led recovery – the multipliers and all that just don’t stack up.

    As for tax – this article is longish but worth a read if you can be bothered. https://www.thesaturdaypaper.com.au/news/politics/2016/03/12/the-rich-people-who-pay-no-tax/14577012002989

    Lawrence the ALP vote in WA should be up at the next election – though it is never easy for them when the only daily paper (and main TV station) is owned by a mining oligarch.

  11. gangey1959

    Maybe p dud one should stick to explaining how $2mil for ONE refugee to be resettled in Cambodia is good value for Australians, instead of treading on his mate moronscum’s toes and making economic statements too.

  12. gangey1959

    Nice one John.

  13. Max Gross

    See, now, Dutton’s problem’s right there in those first couple of pars: “I think…” and “I think…”, when we all know – and he continues to demonstrate – that Dutton really doesn’t think at all. He is like a mollusc, a mushroom or one of those see-through blobs of jelly that wash up on the beach. There’s nothing in that potato head of his. Nothing but white noise. Welcome to Malcolm’s “exciting’ and “innovating” times!

  14. michaelattoowoomba

    Gangey1959 6.05 pm,Maybe we could remind turnbullshit of his great interest in cost benefets analasys he was so demanding of for every damned thing when in opposistion.MF

  15. mark delmege

    clueless and drowning in debt. Last week it was reported that we are the most indebted people in the world and (our debt) has now hit a trillion dollars. I’ve said here before our economy is dependent upon more migrants to prop up the show and without them we might be in the same boat as many other countries – flat-lining or worse. This article suggests something similar. I’d argue we need more manufacturing – like auto’s rather than weapon systems. But what is Labors answer? Infrastructure is useful but its only a first step in actually producing something.

    http://www.dailyreckoning.com.au/australias-economic-growth-model-is-a-mess/2016/03/10/

  16. mark delmege

    (We should of course also be building our Navy ships)

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