Reaping what they did not sow

During the GFC China's rate of GDP growth fell from 13% to 6.8%.This is a marked fall but by comparison with other nations China's economy was still expanding rapidly.

In response China's fiscal stimulus was US$580 billion. All of this stimulus was into Fixed Asset Investment [FAI] involving such things as rural infrastructure, low income housing, transport, medical and education, technology, power facilities, particularly coal, nuclear and hydro.

Of relevance to Australia, to enable this FAI stimulus to occur, China needed Australian coal. Australian coal exports at the time of the GFC and Swan's stimulus nearly doubled and the price per tonne increased by 100% for thermal coal and 200% for metallurgical coal. Most of this was due to increased coal and mineral demand by China.

In short Swan did not have to do anything to insulate Australia from the GFC; China's stimulus package did his work for him. He spent $21 billion for nothing.

Every other economic policy this government has done, from the Building Education revolution, to the Mining tax, to the National Broadcast Network, has either featured such cost overruns that the integrity and benefit of what would otherwise may have been a reasonable policy idea has been undermined or, in the case of the mining tax, not worked at all, costing more than it ever will rise simply because this government did not understand that, amongst other mistakes, State Royalties are a legitimate tax deduction.

Economically this government has, during the longest and biggest mineral boom this nation has seen, wracked up a $255 billion debt, a turnaround of nearly $300 billion since Howard left office, with no lasting infrastructure to show for it.

The blight of this government is not all economic however.

Gillard's government is a trade union based government. It must carry some of the blame for the economic vandalism and possible criminal activity of the previous NSW ALP government.

The Gillard government must carry the responsibility for the Thomson fiasco and the wider ramifications for exploitation of workers' money by trade union leaders.

Gillard herself will arguably have to face charges for her past deeds.

Such potential criminality at the highest political levels of the nation erodes the trust and confidence in the criminal system. The delay in dealing with Thomson, the NSW mess and the failure of Gillard to adequately confront her issues exacerbates that loss of trust and confidence.

Gillard's government has also attempted to constrain free speech in this nation via the ill-conceived Finkelstein report, and the equally ill-conceived anti-discrimination bill proposed by former AG Roxon.