If Labor can look credible enough on climate change, whatever the next election will be fought on, that should be enough to win it.
Treasury’s unusual move in projecting growth at a higher trend and for a longer forward projection is necessary to provide a guide path out of the downturn that does not come from the economic programs of the political class.
Both parties were just talking tough about going to the electorate with economic programmes that they didn’t have.
So if the downturn is unprecedented, why has then Treasury chosen this time to change its methodology to more allow for the experience of past economic recoveries than ever before?
Predictions of some officials in Washington, London and Paris that the economy would begin to recover within a year, are based on no other reason than they wouldn’t know what to do if it didn’t.
The coalition is desperately trying to hold on to a more fundamental plank in its policy than China-baiting.
The government’s problem here is that in its eagerness to appear relevant it has caught itself up with international authorities looking to do the same.
There is probably no better way to appear practical than by responding practically to a problem that doesn’t actually yet exist.