Hit and Myth - debunking Labor's interest rate theory

Many of these migrated to the Coalition via Family First preferences. They didn’t swing to Labor because they didn’t want to, and they haven’t wanted to, since John Howard won in 1966, although Kim Beazley did well among some of the lower income groups in 1998.

The swing to Labor took place amongst groups disaffected with the Coalition since 2001, like the well paid and the better educated, or professionals in medicine, architecture and commerce, who just happened to be paying higher mortgages and carrying the largest total household debt.

NATSEM’s study showed this group was smart enough to pay off their high-interest credit card every month, so they’re smart enough not to waste a vote on a party they think will cost them money.

Surely, if any group was motivated by concern about interest rates, and educated about economic management and the economy, it would be this one … and it swung to Labor, not to the Coalition.

Labor’s real problem lies in the fact that the Howard Government has continued to whittle away Labor’s diehard supporters since 1996, through effective economic management and better election campaigning.

Which gets back to the reason for the creation of the myth about interest rates in the first place: The Labor leadership now rationalising the loss is simply not prepared to take responsibility for it.