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Dear Mr Rudd (Minister for Propaganda)

By Chris Lewis - posted Monday, 27 July 2009


Western countries will never be able to compete with China in the foreseeable future no matter how productive they are? Look at the US which has long ranked at the top or near the top of the World Economic Forum’s Global Competitiveness Report (2008-2009).

That is why protection is on the rise and will increase as respective economies suffer.

Mr Rudd, your broad outline for the future does not make sense. You promise to keep government tax below the level of the economy you inherited and acknowledge that budget revenue will suffer from lower growth, yet your government will address increasing welfare demands (health and an ageing population), fix bottlenecks constraining our growth potential from mining, spend $43 billion to construct and operate a national broadband network in partnership with the private sector, and ensure that Australia meets it water needs.

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And how do you propose to meet Australia’s housing needs. Though your government announced in February 2009 that it would spend $6.6 billion (mainly over the next two years) to create 20,000 public houses, the Australian Institute of Health and Welfare estimated that there a 177,000 applicants are on waiting lists for public housing (The Age, February 4, 2009).

With Australia’s housing problems likely to get worse under tougher rules for financial institutions in regard to lending practices, what do you propose to meet the housing needs for ordinary people? Will you just let rents rise and rise?

After all, the signs are not good for ordinary workers when the Fair Pay Commission offered no rise in the minimum wage for the lowest paid workers.

Mr Rudd, your recent essay is mostly rhetoric intended to promote Labor’s election prospects rather than a serious summary of the policy difficulties ahead. While an undergraduate can be excused for a lack of knowledge about international politics, you are the Prime Minister of Australia who should have a much greater grasp of economic complexity. For this reason I have chosen to downgrade your essay and given it a bare pass despite your considerable effort as Australia’s Minister for Propaganda.

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About the Author

Chris Lewis, who completed a First Class Honours degree and PhD (Commonwealth scholarship) at Monash University, has an interest in all economic, social and environmental issues, but believes that the struggle for the ‘right’ policy mix remains an elusive goal in such a complex and competitive world.

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