Published: The Australian
No doubt Cameron Stewart and David Uren have ensured that the door to Rudd’s office remains open to them with their booster, ‘Leadership forged in the financial fire’, The Weekend Australian , 23-24 January.
There is no doubt that Rudd’s stimulus package and hand outs were politically astute, however to argue that they saved Australia from a severe economic downturn is pure conjecture. The article was short on economic analysis to back the claims of Stewart and Uren. Some economists in Australia back the claims made in the article, others do not, whilst others are still analysing the effects of the splurge.
Surprisingly, Australia’s narrow economic base seems to have been an advantage rather than disadvantage allowing the size and focus of the Chinese stimulus package to have both an actual and psychological impact on the Australian economy.
However, what is apparent is that few lessons have been learnt by government and financial institutions in Australia. Reform of all but the tax system is on the back burner and reform of the tax system is now imperative if we are to pay off Rudd’s political investment.