Sinclair Davidson again

Alas and alack I have found it hard in recent days to write about anything  however Sinclair Davidson's desultory comments at Steve from Brisbane's blog got me reading Catallaxy in search of something I could  'write' about. Sure enough there is Sinkers attempting to show up Jim Chalmers.

so let us go through this penetrating article.

First of all he says the electorate had its vote on who had the better plan. This may come as a shock to Sinkers but we had a HUGE polling failure. Although we know the result we do not know the reasons for that result. The government had no plan either which is exactly Chalmers' point.

Next he makes the extraordinary claim that the sluggish growth is all due to people anticipating an ALP victory.  Any evidence for this ? Nope. We must remember Sinkers does not have a clear grip of basic macroeconomics. Indeed this is a feature of Catallaxy as we have seen in the past.

He does not like the term per capita recession. Oh dear what happened when our old mate Katesy talked about this in 2008. You are right Sinkers was silent. We now have GDP per capita falling for three consecutive quarters.!

He says an increase in tax as a % of GDP from 23.3 to 24%  of GDP  over time is a massive increase.Oh dear .Household consumption was obviously falling in John Howard's time then He implies those tax increases were aimed at those experiencing low wage increases. No  the ALP were  mostly targeting middle class welfare such as franking credits and  negative gearing. We should remember sinkers does not understand the difference between total income and taxable income so the confusion is understandable. And of course he forgets about what is occurring to expenditure.

Finally Sinkers does not seem to realise renewable energy is either cheaper ( solar PV) than coal fired energy or almost the same price ( wind) and both are still falling in cost indeed Ross Garnaut thinks there is a good chance Solar PV costs could be $30/MWh by 2025.

I should add something that neither He nor Judy knows. The ALP had a swing to them with better educated and high income groups. The people who swung against the ALP were the pesky voters who were getting all the goodies. That is a giant whoopsy. The PBO ticked off the ALP program so only an ignoramus would say the spending was not costed.

Lastly Sinkers does not want more spending. Well Phillip Lowe the RBA governor does because it will help stimulate the economy.

So many errors in an article and no-one at Catallaxy could pick one up.say it all really.

Anybody else 'working' at a University would be embarrass