Acting Prime Minister Michael McCormack has today been caught out talking down the Australian economy at the same time Treasurer Frydenberg was repeating his tired assertion that the Morrison Government has the “right policy settings”.
When questioned on the Government’s fiscal policy this morning, Acting Prime Minister McCormack said:
When you’ve got a stronger economy you can look at all those sorts of things. You can look at the welfare payments. You can look at all those sorts of things. Even spending more money on infrastructure to make it easier for people.
ABC Radio Adelaide, 27 August 2019
Acting Prime Minister McCormack’s comments further highlight the Morrison Government’s disarray on the economy.
While the Treasurer claims this Government has the “right policy settings”, in reality they are overseeing our slowest growth in a decade, stagnant wages, record household debt, high underemployment, and declining living standards.
The RBA Governor is this week again calling on the Morrison Government to use fiscal policy, such as fast tracking infrastructure investment, to get the economy going again. This marks his sixth intervention since the May 2019 election.
Rather than heed his advice, last week we saw the release under FOI of slides prepared by the Treasury (at the behest of Treasurer Frydenberg) to try to debunk Dr Lowe’s measured and well considered calls for infrastructure spending.
Will Treasurer Frydenberg again manufacture excuses to ignore the RBA Governor’s repeated advice?
Will Infrastructure Minister McCormack continue to roll over and fail to produce a real plan to bring forward infrastructure investment?
Good governments use fiscal policy, such as boosting infrastructure spending, to improve the lives of all Australians and boost our economy – as Labor did in response to the Global Financial Crisis.
Over their first five budgets, this dismal Government delivered $5.1 billion less for infrastructure than they promised.
Australians are demanding this Government change course and start taking infrastructure investment seriously.
Ministers Frydenberg and McCormack must stop quibbling between themselves, listen to the experts and focus on delivering a real plan to turn things around.