Scott Morrison points to last downturn, Labor’s “recession we had to have”

Shadow treasurer Chris Bowen said instead of focusing on the issues now facing the economy, the government was only concerned about sowing fear about the Labor Party. ‘All the government has got is fear. All they’ve got is scare. All they’ve got is negativity,…’

Commonwealth Bank economist Belinda Allen said the effects of falling property prices and a prolonged period of sluggish wages growth were building.

Source: SMH

Comment: In November 1990, Paul Keating, Chris Bowen’s mentor declared:

‘This is the recession we had to have’

Currently, property prices are having a correction. When Labor abolishes legitimate claiming of property development expenses (aka “Negative Gearing”), the property collapse will make the correction look like a picnic. In fact, the correction is most likely due to investors pausing from taking on risk in anticipation of Labor’s 50% increase in CGT and abolishing recognition of legitimate expenses. Labor’s double-taxation proposal will most likely cause a sell-off in the share market as well.

Meanwhile exports are soaring…

The trade surplus increased by 21 per cent in January to $4.5 billion

Foreign buyers are not influenced by the likelihood of a Labor government – only the Free Trade Agreements put into place by Tony Abbott, starting in 2013.

The Coalition inherited from the ALP:

  • massive debt and deficit
  • infrastructure deficit
  • a mining tax that was discouraging investment
  • a carbon tax that was destroying the aluminium industry and more
  • record unemployment
  • promises to maintain spending on health, education and the NBN

The ALP had reneged on the agreement between Costello and Keating to ‘maintain net zero debt over the economic cycle’ and left Abbott with a massive debt AND infrastructure deficit. Abbott’s free trade agreements and massive new infrastructure program compensated for the downturn in mining and the massive burdens on the economy left by Labor.

If the ALP is re-elected it will be more of the same

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