The Treasurer is really out of his depth
Henry Ergas has again managed a sober analysis, this time of where Wayne Swan has gone wrong, why his piece in The Monthly is misplaced envy, and how it raises in the reader’s mind why a man with such a profound misunderstanding of how an economy works can be running the Treasury of our country.
No government has done more than Gillard and Swan’s to undermine longstanding public processes of policy assessment, while making backroom deals central to its modus operandi. Nor has any government done more to entrench the narrow interest group on which it relies, the unions, or been as unaccountable in dispensing taxpayers’ money to its favoured constituents.
That, not Rinehart’s wealth, is the danger our democracy faces. For Rinehart’s wealth is exposed to the disciplines and vicissitudes of world markets; poor governance, in contrast, is perpetuated by the coercive powers of the state.