I read the news today. Oh boy. Apparently, Australia is now a socialist dictatorship run by red rag shop stewards stealing the legitimate rewards of those with enterprise and throwing it away on the undeserving poor.

“Once again, nothing in it for me,” said  ‘Single Dad’ in the comments section of a Sydney Morning Herald analysis from Adele Ferguson describing Wayne Swan’s fifth budget as ‘Class Warfare’. Over at ‘The Heart of the Nation’, meanwhile, the splash was ‘Smash the Rich, Save the Base’, with Swan and Gillard seen leading an angry mob against a hammer and sickle backdrop.

Apparently, in this new Tea Party, Fox News-inspired world where the facts are optional, socialism is defined as any measure that involves redistribution of any kind – as if the entire post World War II edifice of the mixed economy was a mirage. Personal inputs via the tax system must be balanced by equivalent personal benefits – or as one SMH poster observed:

“Does that person on $1m use more roads, more hospitals, more public schools? Do they go on welfare, take unemployment benefits? They probably have private healthcare and send their children to private schools. A conclusion based on reality would be that they are actually pulling everyone else.”

And there we have it folks – the new reality in Australia. Our taxation system works like a bank account. You take out what you put in. And if you choose to send your kids to private schools, the government  owes you a tax rebate for the expense. If you’re stuck in a low-wage job and can’t afford necessities or if you’re unemployed, that’s your own damned fault. So HTFU.

Meanwhile, the scribblers of the press gallery spin every story to fit the current  Meta Narrative that “This Hopeless Government is Doomed and Must Be Put Out of its Misery at the Earliest Opportunity” (subtext: because we love election campaigns and the story is just too damned good  to give up on now). The punning headlines of ‘Swan Song’ and ‘Black Swan’ would  have been assembled way before the Treasurer even stood up in parliament.

As is now customary in Australia, the political argument over the budget consists of a battle between the Hairy Chested and the Even  More Hairy Chested. (“You Call THAT a surplus? I’ll show you a surplus!”) So we had Joe Hockey running around, saying the Coalition would cut even deeper and tap 20,000 public servants on the arm rather than 3000. In other words, according to the conservatives, a budget that already projects the greatest fiscal turnaround in the last 40 years (a 3% improvement in the budget bottom line) is not tough enough. Right.

Perhaps at this point, it is pertinent to check in with the real capitalists in the financial markets. What did they say about the budget?

  • HSBC: “Australia’s fiscal position is very strong compared with the bulk of the developed world. With current net government debt of 9.6% of GDP, Australia’s triple AAA sovereign rating seems secure. We also agree that it is an appropriate goal for the government to be aiming to balance the budget on average.”
  • CBA: “The government deserves some credit for sticking with its fiscal guns and adhering to the exit strategy laid out for the post-GFC environment.  And they deserve some credit for finding sufficient savings to fund some new measures and offset the impact of the patchwork economy on the Budget parameters.”
  • FITCH RATINGS: “(Australia) is already a standout in ratings strength, having giving it a demonstrable capacity to absorb fiscal and economic shocks. Delivering budget surpluses over the coming years will depend on implementing a mix of tax and spending measures that build on its strong economic and fiscal starting points. Even If the economy unexpectedly slows, it is likely that any deficit in the coming financial year will be small. And over the medium term we would give credit for successfully implemented fiscal consolidation that helped reverse the government debt trajectory.”

So if we really are seeing the vanguard of red-in-hammer-and-sickle socialism, as the media tells us, the financial markets (where REAL money is at stake) are saying the complete opposite. In fact, Australian government bond yields moved to record lows after the budget (yields fall as prices rise). That’s telling you that global investor demand for Australia as a safe haven amid all that’s going on in Europe is stronger than ever.

Just as a point of reference for those saying Australia is on the verge of the economic apocalypse,  the Financial Times reports today that in Greece and Spain, the proportion of young people between the ages of 15 and 25 who are now without a job is 51 per cent, in Portugal it is 36 per cent and  Ireland, it is 30 per cent. The IMF forecasts that the economies of Greece, Italy, Portugal and Spain will shrink this year.

Now put all that in the context of the headlines in today’s papers and ask yourself: How unhinged, how out of touch, how completely divorced from global reality are our media? What ARE they on?


21 Comments

Chris · May 9, 2012 at 5:00 AM

The headline was certainly overdone (there wasn't much pain, if any, for most high income earners). But I don't think cartoons should be taken too seriously or literally.

Robert van Aalst · May 9, 2012 at 5:15 AM

Thank you

Robert van Aalst · May 9, 2012 at 5:15 AM

Thank you

David · May 9, 2012 at 5:24 AM

God, what a relief reading this. I have been reading tripe all day from the mainstream media and the comments sections both of which I have been unable to comprehend the stupidity and put my finger on the reason why they have been shitting me so much. This is it.

Anonymous · May 9, 2012 at 5:58 AM

Some people may have read this and smiled,
Reverse physicology, i think i hope it had the reverse to what thet they thought

aslsw · May 9, 2012 at 5:59 AM

As an accountant (who also studied economics – yeah, I know classic introvert behaviour), I find the level of economic arguments being peddled by the Opposition is frightening. In particular, relating Government finances to the household budget (eg. “the country's credit card”). I saw Hockey blabbing on about how the NBN is not in the bottom line – which business in the country mixes capital investments with its operating result? If I did that with my mortgage, then I would think I was broke for the first 20 years of adult life!

The other unbelievable thing is that, no longer do we have to avoid losers, but Governments must now ensure that everyone is a winner ie. everyone must be able to identify an immediate, tangible dollar outcome.

Me? I'm grateful that successive Governments of both sides have built an economy and a community where I can work, earn a reasonable income, enjoy my leisure time, do some community volunteering, receive quality healthcare, educate my children etc. As far as I'm concerned, that's all great value for the taxes I pay even if I don't actually get any cash transfers back in.

Anonymous · May 9, 2012 at 6:08 AM

“I'm grateful that successive Governments of both sides have built an economy and a community where I can work, earn a reasonable income, enjoy my leisure time, do some community volunteering, receive quality healthcare, educate my children etc. As far as I'm concerned, that's all great value for the taxes I pay”

Careful, you're starting to remind me of the Australia I grew up in. The IPA/Coalition are doing everything they can to destroy that Australia.

Anonymous · May 9, 2012 at 6:17 AM

How apt – and how disturbing – “in this new Tea Party, Fox News-inspired world where the facts are optional…”

Wonderful analysis, thank you.

Anonymous · May 9, 2012 at 6:56 AM

And the prattlers are prattling and claiming that Fair work found Thomson guilty of something when they did no such thing.

The fair work report has assumptions like this “the signature at the brothel was similar so it was Thomson's”, the sort of crap that gets thrown out every day.

And “there was no policy on spousal travel”” so Thomson is guilty of breaching spousal travel policy.

He spent “$2,000 in one shop of memorabilia in his electorate and the investigator surmises that it was to raise his profile in the election.

But we don't learn that stupid Jackson was paid $121,000 more than Thomson while claiming Thomson was greedy and Williamon was paid $176,000 more.

No nuances for our frigging media – they don't read actual stuff, just make the headlines.

They then all report that a report said things it didn't and claim it takes the oxygen out of the budget which is only does because they keep prattling about it.

And they claim that Thomson took his wife on 14 trips for business in nearly 5 years and that is “excessive”” yet there was no policy to say it was illegal.

Then there is a gripe that he broke the non-existent credit card rules by approving two charity gifts totalling $15,000.

How the hell our worthless media can claim someone broke the rules when the rules are known not to have existed is beyond me but Thomson is being blamed for the failure of the national executive to make such rules.

But hey, can;t expect the dirt bag media to report that – they are too busy talking crap.

Mr Rabbit · May 9, 2012 at 7:13 AM

“…socialism is defined as any measure that involves redistribution of any kind …”.

That's not quite correct. Redistributing money to private schools or to those with private health insurance is not socialism, nor are baby bonuses for those earning over $150,000 per annum. Negative gearing for those speculating in property is fine. It's only redistribution to the undeserving, i.e. the poor, the unemployed, refugees, aborigines, the arts, anyone deemed unlikely to vote for the Coalition or anyone of whom News Limited disapproves.

Anonymous · May 9, 2012 at 11:08 AM

Well done Mr Denmore. It never cease to amaze me that the MSM, at the blink of an eye, can trot out the usual whingeing “family” who feel robbed/forgotten/abused and not to mention left out of the largesse even though they are collectively earning a considerable amount but have a sense of entitlement(take note Hockey).And a disgruntled “self funded retiree” on 80grand a year who reckons they are short changed.

Amazing that those who really are up shite creek can never find an MSM to take up the cause of trying to survive on newstart.

charles · May 9, 2012 at 12:18 PM

Excellent article, thank you.

re “our media” and “What ARE they on?”, I suggest they've overdosed on relevance.

Anonymous · May 9, 2012 at 1:57 PM

Shows how little the stupid media hacks know – about everything.

The mainstream media is a cancer on democracy. It wasn't supposed to be that way (just the opposite), but that's how it has become.

The sooner the audience desert the media the better.

Anonymous · May 9, 2012 at 2:08 PM

And I'll bet the crew at the OZ sat around this morning and looked at the apalling cartoon and the nine headshots of staff on the front page (talk about being up yourself) and told each other what a good job they are doing. Delusional is too strong a word.But then again they do work for Rupert and the Leveson inquiry last week was proof aof the state of his mind

Helen · May 9, 2012 at 10:37 PM

What others said. Thank you.

Sue · May 9, 2012 at 11:13 PM

Geez, how awfully unaspirational of you ;P

Anonymous · May 9, 2012 at 11:58 PM

Found this via Pure Poison. What everyone else said. Just brilliant. (Actual facts, research, and argument – such a relief!)

Joel · May 10, 2012 at 1:51 AM

Said it before, imagine the response if Howard and Costello were portrayed as right wing despots and dictators of the past or present (Hitler, Mussolini et al) in any publication…

Doug · May 10, 2012 at 7:15 AM

Tell that to jspooner@theage.com.au He'll give you a good debate on that.

Mr Rabbit · May 10, 2012 at 11:41 AM

Great article. Couldn't agree more. It seems that many 'capitalists' no longer invest productively but are involved in some gigantic casino. Or a game of musical chairs. Or perhaps its more like a Ponzi scheme. We need more regulation, not less. And when a bubble bursts, the the cost should, as far as possible, be born by the speculators – after all, they were gambling and they lost.

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