Raven
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Australian Politics
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John Howard is certainly one of the worst PMs in Australian history.
Let's look at some of his achievements:
On housing affordability, Howard introduced the capital-gains-tax concession; bolstered the first-home buyers' grant; and boosted immigration – all putting pressure on housing demand. Investor entry into the housing market took off from the moment the capital-gains-tax concession began. We wallow helplessly in the backwash of these idiotic decisions.
Speaking of tax, Howard introduced the over-60 superannuation tax holiday, other super concessions, family payments to middle-income households, age-based tax concessions, and lots of income-tax breaks for middle to higher-income households. These have been difficult if not impossible to wind back and have increased inequality in Australia.
In short, Howard squandered the mining boom on buying votes and allowing miners to be lightly taxed.
In education, he dramatically increased federal funding to private schools ,which they largely spent on non-educational luxuries. He starved public schools. The result is the worsening scores Australia gets on national and international testing. Again, it has been difficult to unwind because of the demand that "no school should be worse off", which Julia Gillard was forced to accede to.
In health, Howard's government corroded Medicare by misdirecting money into tax deductions for inefficient private health insurance. Again, they are hard to unwind. Howard set the stage for the present return to the 1960s in the health system – one in which many people cannot afford to pay for healthcare.
We now bemoan the casualisation of the workforce, underemployment and low wages growth. A lot of that is down to Howard's industrial-relations policies, culminating in WorkChoices.
On other iconic questions, he created historic mischief. He divided and ruled on the 1999 republic referendum instead of being a national leader. He demanded his party members vote for an antiquated definition of marriage; we still have division in our society when our English-speaking and European friends and allies have all grown up.
Howard followed the US out of the Kyoto agreement. He reluctantly agreed that a carbon tax would be worthwhile but did nothing about it. He encouraged the states to privatise electricity and, in 1998, set up the national electricity market based on market principles – meaning electricity network owners, suppliers and retailers could screw consumers and small business.
Then there is the myth that the Howard Government were great economic managers.
In 1996, Howard inherited an economy in promising shape. The tax system had been overhauled, the public service had been trimmed to size and the budget returned to structural surplus after decades of deficits.
Australia’s economy strengthened remarkably through the Hawke-Keating period. The world watched in awe as Paul Keating deregulated the banks, floated the Aussie dollar, reduced tariffs on imports, “snapped the stick” of inflation, moved from centralised wage-fixing to enterprise bargaining and privatised publicly-owned non-monopolies.
From about the 20th-ranked economy in 1982, Australia had risen by 1996 to sixth in the world — behind only the United Arab Emirates, Norway, Singapore, Japan and the United States.
That’s measured by the variables: income, growth, wealth, jobs, inflation, interest rates, taxes, economic freedom and credit ratings.
By 2007, however, at the end of the wasted Howard years, Australia had slipped back in the rankings to 10th place.
This was masked, at the time, by global growth and an extraordinarily acquiescent media. But while Howard and Costello alternately blundered and dozed, Australia (with Japan and the USA) was overtaken by Iceland, Luxembourg, Switzerland, Taiwan, Hong Kong and China.
Most of these had lower interest rates, greater support for enterprises and smarter investment strategies — and hence more people employed and stronger growth.
There was no excuse for this deterioration. The structural reforms of the Hawke and Keating years built the foundation for Australia to beat the world — as eventually happened in 2010, when Australia rocketed to the top of the world’s economies.
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