- Posted by Ad astra on June 9, 2009
Last week was one of the most politically eventful since the election of the Rudd Government. But how crucial was it to the future of the Government and the Opposition?
The National Accounts for the March Quarter showed a seasonally adjusted growth in GDP of 0.4%, avoiding two quarters of negative growth and denying oxygen to those who wanted to call a recession. Moreover, there was evidence that the fiscal stimulus packages had contributed significantly to that outcome, although favourable terms of trade had contributed even more. Kevin Rudd and Wayne Swan were delighted, like parents of a lost child on its return. They had feared the worst and the onslaught of criticism that would have followed. Their relief was palpable. In contrast the Coalition was frustrated. While it might be unfair to assert that Malcolm Turnbull and Joe Hockey wanted recessionary figures, they were clearly disappointed that one of the main planks supporting their debt and deficit platform, namely that the stimulus packages had not been successful in avoiding a recession, had been denied them, at least for the time being. In a media conference Turnbull took less than a minute to say he was pleased with the figures and several trying to make the point that the result was mainly due to the trade figures and had little to do with the stimulus packages. The tiny graph he exhibited to the media to reinforce this point seemed to attract more amusement than enlightenment. More...