{"id":18151,"date":"2019-05-04T00:00:55","date_gmt":"2019-05-04T00:00:55","guid":{"rendered":"http:\/\/thepatientinvestor.com\/?p=18151"},"modified":"2019-05-04T00:02:46","modified_gmt":"2019-05-04T00:02:46","slug":"australias-irrelevant-election","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2019\/05\/04\/australias-irrelevant-election\/","title":{"rendered":"Australia&#8217;s irrelevant election"},"content":{"rendered":"<p>Satyajit Das spells out the challenges facing the Australian economy in the next decade:<\/p>\n<blockquote><p>\nThe centerpiece of both major contenders&#8217; campaigns are large tax cuts and significant government spending on infrastructure and welfare. Both parties pay lip service to sound public finance. But the sustainability of policies based on outbidding political opponents and financing permanent expenditure with impermanent revenues is questionable.<\/p>\n<p>&#8230;.This striking lack of control that Australia has over its economy is grounded in <a href=\"https:\/\/asia.nikkei.com\/Opinion\/Australia-s-irrelevant-election\">four factors<\/a>.<\/p>\n<p>&#8230;.Sadly, no party&#8217;s manifesto addresses these fundamental challenges. Tax cuts will not reform a system which needs to be overhauled. Infrastructure spending provides a short-term increase in demand. Bad choice of projects and poor delivery, evidenced by the disappointing National Broadband Network which is over-budget and slow by the best international standards, may not enhance longer-term efficiency and productivity.<\/p>\n<p>The narrowness of the economic base is ignored. No political party is willing to address over-investment in housing, the total value of which is around $6 trillion or around 4 times gross domestic product and constitutes a large proportion of household wealth. Encouraged by complex subsidies, capital is locked up in property, unavailable for more productive activities such as new industries. Leaders are reluctant to champion forceful structural reforms to improve education and skill levels as well as streamline regulation. Instead, all contenders seem happy to rely on windfalls to finance the nation&#8217;s living standards through ever shorter electoral cycles.\n<\/p><\/blockquote>\n<p>Worth reading the full article at <a href=\"https:\/\/asia.nikkei.com\/Opinion\/Australia-s-irrelevant-election\">Nikkei Asian Review<\/a><br \/>\n<em><br \/>\nHat tip to <a href=\"https:\/\/www.macrobusiness.com.au\/2019\/05\/houses-holes-go-global\/\">Macrobusiness<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Satyajit Das spells out the challenges facing the Australian economy in the next decade: The centerpiece of both major contenders&#8217; campaigns are large tax cuts and significant government spending on infrastructure and welfare. Both parties pay lip service to sound public finance. But the sustainability of policies based on outbidding political opponents and financing permanent &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2019\/05\/04\/australias-irrelevant-election\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Australia&#8217;s irrelevant election&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[40,46,3761],"tags":[1732,2322,3331],"class_list":["post-18151","post","type-post","status-publish","format-standard","hentry","category-australia-nz-countries-regions","category-deficit-spending-employment","category-gdp-and-activity","tag-housing","tag-mining","tag-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Australia&#039;s irrelevant election - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Australia&#039;s irrelevant election - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Satyajit Das spells out the challenges facing the Australian economy in the next decade: The centerpiece of both major contenders&#8217; campaigns are large tax cuts and significant government spending on infrastructure and welfare. Both parties pay lip service to sound public finance. But the sustainability of policies based on outbidding political opponents and financing permanent &hellip; Continue reading &quot;Australia&#8217;s irrelevant election&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2019\/05\/04\/australias-irrelevant-election\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-05-04T00:00:55+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-05-04T00:02:46+00:00\" \/>\n<meta name=\"author\" content=\"Colin Twiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Colin Twiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2019\/05\/04\/australias-irrelevant-election\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2019\/05\/04\/australias-irrelevant-election\/\"},\"author\":{\"name\":\"Colin Twiggs\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/d42b18d516a80149d739845749ac6454\"},\"headline\":\"Australia&#8217;s irrelevant election\",\"datePublished\":\"2019-05-04T00:00:55+00:00\",\"dateModified\":\"2019-05-04T00:02:46+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2019\/05\/04\/australias-irrelevant-election\/\"},\"wordCount\":250,\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"keywords\":[\"housing\",\"mining\",\"tax\"],\"articleSection\":[\"Australia &amp; NZ\",\"Deficit Spending &amp; Employment\",\"GDP and Activity\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2019\/05\/04\/australias-irrelevant-election\/\",\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/2019\/05\/04\/australias-irrelevant-election\/\",\"name\":\"Australia's irrelevant election - the patient investor\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#website\"},\"datePublished\":\"2019-05-04T00:00:55+00:00\",\"dateModified\":\"2019-05-04T00:02:46+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2019\/05\/04\/australias-irrelevant-election\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2019\/05\/04\/australias-irrelevant-election\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2019\/05\/04\/australias-irrelevant-election\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/thepatientinvestor.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Australia&#8217;s irrelevant election\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/thepatientinvestor.com\/#website\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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Cutting rates, especially from this low a base, is not a bullish sign. It will warn of RBA concern at the pace that the economy is contracting. Central banks are data-driven. They do\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11306,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/11\/08\/a-growth-pact-for-america-by-glenn-hubbard-project-syndicate\/","url_meta":{"origin":18151,"position":2},"title":"A Growth Pact for America by Glenn Hubbard | Project Syndicate","author":"ColinTwiggs","date":"November 8, 2014","format":false,"excerpt":"Glenn Hubbard, former Chairman of the Council of Economic Advisers under President George W. Bush, and Dean of Columbia Business School proposes: ....two policies are particularly promising for such a \u201cPact for America\u201d: federal infrastructure spending and corporate-tax reform. Enactment of these reforms would generate a win for each side\u2026","rel":"","context":"In &quot;Deficit Spending &amp; Employment&quot;","block_context":{"text":"Deficit Spending &amp; Employment","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/deficit-spending-employment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1716,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/02\/five-challenges-facing-president-obama\/","url_meta":{"origin":18151,"position":3},"title":"Five Challenges facing President Obama","author":"ColinTwiggs","date":"November 2, 2011","format":false,"excerpt":"On his inauguration in 2009, Barack Obama inherited a massive headache from the GFC. With unemployment stubbornly above 9 percent, efforts to create new jobs have so far proved futile. Low interest rates from the Fed failed to stimulate new investment. Richard Koo coined the phrase balance-sheet recession to describe\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":19880,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/03\/07\/australia-the-bear-case\/","url_meta":{"origin":18151,"position":4},"title":"Australia: The bear case","author":"Colin Twiggs","date":"March 7, 2020","format":false,"excerpt":"The RBA cut the cash rate by 25 basis points on Wednesday this week, to a record low of 0.50%. This was necessary in order to limit the interest rate differential with the US and protect the currency. But it will not do much to help the economy. Household debt\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5443,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/09\/12\/mark-the-graph-tax-chartacular\/","url_meta":{"origin":18151,"position":5},"title":"Australia: Company tax payments down almost 40%","author":"Colin Twiggs","date":"September 12, 2012","format":false,"excerpt":"David Uren from The Australian, as quoted by Mark the Graph: Last week's national accounts show company tax payments have fallen from an all-time peak of 6.2 per cent of gross domestic product in 2007 as Peter Costello delivered his last budget, to just 3.8 per cent in the June\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/18151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=18151"}],"version-history":[{"count":2,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/18151\/revisions"}],"predecessor-version":[{"id":18155,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/18151\/revisions\/18155"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=18151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=18151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=18151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}