Thompson said it, then Costello did it: “Higher interest rates a sign of good economic management”

Thompson said that was the line they were going to go with only yesterday (before both he and the Prime Minister denied that he said it). Now true to form, today Costello is playing out the very same game plan that Thompson detailed yesterday.

Thompson yesterday (as revealed on an audio recording by the Courier Mail after Howard and Thompson denied he said it);

“Tomorrow if there is a rise, that point will be made once again that we are fortunate to have a good strong economic management team.”

Costello today;

“When you have low unemployment there will always be more pressure on inflation… You would always expect interest rates to be higher during a period of low unemployment than a recession. But we still have interest rates lower today than they were in the recession.”

And yet it was easier to pay off a housing loan during the recession, that despite those (marginally) higher interest rates wasn’t it Peter? Housing payments, that despite the surplus in the labour market (which drives wages down) and despite the marginally higher interest rates, made up less as a percentage of people’s income. You would think that with all this prosperity, buying a house would be easier*!

Oh well, perhaps Costello doesn’t really mean it. Maybe Thompson, a Liberal party backbencher, has more leadership capacity that Costello when it comes to “managing the economy”. Or perhaps precisely the same capacity; none.

Must be why Howard tried to keep a lid on Thompson; he doesn’t want Australia to know that his anointed successor has all the influence in the Liberal Party as a backbencher from Queensland. Brings back memories of 1995.

Thanks for the Youtube link again go to Jimmy Scullin, the man apparently secretly pulling the strings in my faction. I’d better put a lid on him before the Courier Mail find out!

~ Bruce

* The Libs of course have nothing to do with this, they didn’t make it worse nor did they make it any better. They simply don’t have that capacity and nor do Labor. “I will not promise to the Australian people what Mr Howard irresponsibly promised to the Australian people at the last election which he has broken five times on the trot and working families are paying the price for it.” – Kevin Rudd.

PS. According to Grodscorp, the Liberal’s line of spin on their economic “management” does not compute, and it’s a desperate change from their previous unconvincing line.