crocodile wrote on Sep 30
th, 2014 at 9:01am:
George, how is it even possible to make comparisons given vastly different circumstances across all time frames. So far, it seems that the gong is set to go to either Howard or Swan. There can't be any dispute that this pair also suffered the worst of global performances during their respective tenures and in one case, working under a PM that didn't put a high priority on macro reforms.
You judge by how well each Treasurer managed in the conditions he faced at the time.
Howard stuffed up big time, huge inflation. He put up no Cabinet submissions for reform—Fraser challenged him to produce any submissions, the rhodent put up: ZERO
Swan managed the GFC brilliantly, no one can deny that. He also manfully attacked the Howard spending in the Budget, means testing the useless Health Care Rebate and the like. Could he have been bolder? Difficult to say but the minority Gillard/Swan govt did get major reforms through, maybe he could have made much bigger cuts to FBT, tax expenditures, etc. Lower than expected revenues bedevilled his Budgets, he should have gone for the low hanging fruit that are the tax expenditures.
I feel he also should have increased the GST and broadened the base—the extra money from broadening the base would have gone to the states, the extra 5% revenue to the commonwealth. To do it right—overcompensate those on lower incomes, phase compensation out at say $100K pa.
To armpit—I have already stated the tripling of the tax free threshold was a needed reform and was paid for by the carbon price.
Costello is one of the very worst Treasurers. flogged off most of the family silver at firesale prices and acted like the boom was going to last forever. A real Treasurer would know booms don’t last forever and acted with an eye to the future.
An indication of how crap a Treasurer Costello was: nobody wanted to employ him in the high paying job he felt he was entitled to. A company CEO who paid out all the record profits in dividends without socking some away, without investing money into expanding and improving the company would get the sack.