Monday, October 29, 2007

The continuing bad luck of JW Howard

It seems to me that when the Australian dollar was at it weakest some years ago, public perception was that this was a matter of some embarrassment to national prestige.

Now the dollar is at its highest level since 1984 (!), yet there is no beneficial perception in the public mind. What's worse, Toyota takes the opportunity to point out that it is making its operations unprofitable and raise the issue of tariff protection again, which always has popular appeal even though it makes little economic sense. According to the report just linked to, Senator Carr's initial reaction was reject further tariff protection to the car industry, yet it leaves open the likes of Kevin Rudd, SA premier Mike Rann and the unions to make sympathetic sounds about the importance of keeping manufacturing alive, and arguing over tariffs again.

The public perception will be that Labor will do more to keep manufacturing here, even though it doesn't seem to me there is any legitimate criticism to be make of Coalition support to the industry thus far. The anti tariff forces in Federal Labor will surely win, and its very likely that support Labor does supply will be pretty much along the same lines as what the Coalition might be talked into anyway.

Just dumb bad luck for the Coalition again, I reckon.

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