Hockey is about to put the fear of god in us
The Intergenerational Report – a five-yearly document looking at long term fiscal pressures, due for release soon – would make Australians “fall off their chairs”.says Hockey.
He said the IGR would not be like past reports but “a very genuine attempt by the Treasury, in an unprecedented way, to launch a conversation about Australia’s future”.
This is exactly what we were told about the last report that proved to be way out in its projection. These reports are terribly unreliable, not because they are badly conceived, rather that they are trying to predict the future.
They generally conservative in nature for good reason, they are a merely a guide to what might could occur if their predictions prove correct. Its bit like predicting the stock market for the next five years.
That does not mean that drastic action is required immediately, it tells us that our action must take into account the report even though its predictions could be flawed. It could prove to be 180 degrees out in five years time as indeed the last one was.
A bull in a china shop reaction would be crazy, Joe Hockey is already trying to scare the pants of us. After the last debacle(budget) he offered up, let's hope some commonsense is used in framing the next one.