Not even one day after I blogged about poor policy decision making by our politicians and a resulting lack of confidence in business, the Treasurer stated yesterday that “The problem in the economy is…about confidence and jobs and growth.” saying there is little point in injecting more money in the economy if people and businesses aren’t prepared to spend it.
Why would business or consumers not have confidence in the Australian economy? Perhaps because there has been no stability or consistent message from the current Government, the national deficit has blown out and it cannot sell its current budget amid the instability they appear to have created. Consumers are worried about keeping their jobs and business is worried about investing in projects when there is a constantly shifting political landscape.
The Reserve Bank Governor worries about the cautiousness being displayed and the “feeling they don’t want to take the risk.”