I'm so confused right now, and considering the amount of conflicting messages coming our way on interest rates who could blame me?
Originally the Coalition argued that it must remain in office in order for interest rates to remain at "record lows". This at least suggested that government held some control of rates through its use of "economic levers", and that these "levers" would be wrongly tweaked by a Labor government. Argument = government IS responsible for high or low interest rates. So when rates are low, the government can claim credit, and when they're high this logic suggests that the government can be blamed.
Yet now, according to Howard, this sixth rate rise since 2004 is actually not their fault, rather it's the product of a strong world economy, high oil prices and the drought. This may all be partly true but it also leaves one asking why, if it is out of their control, did they campaign that they would keep interest rates at "record lows"? Howard's denial of any responsibility for rate rises since 2004 directly contradicts the Coalition's last campaign theme. But then, Costello isn't buying it:
'The Treasurer said yesterday unemployment was at its lowest level since 1974, but this may be having an effect on inflation.'
"Because unemployment is so low and employers are in some places competing with each other to get employees, that's putting upward pressure on wages," he said.
So it is their fault now, even though the argument he's making is that the government is just too damn good for its own good, he is admitting some blame. You've got to love Costello here as he attempts to turn the rise into a positive for the government, but doesn't this acknowledgement hint at what Labor's been attacking them for all along, ignoring the skills shortage? This has to be one of the key problems for inflation these days and it is something that the government does have some responsibility for. So why did Howard bullshit us? Or was it just semi-bullshit?
With Australians in so much debt it's predictable that politicians will try to use things like interest rates to scare votes out of us. So the layers of lies concerning what's behind rate rises are products of our own making. We need to stop living out of our means, shed some of our excessive materialism and relax. Why be slaves to "things"?
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