Tuesday, March 03, 2015

'Rubbery Joe' Hockey still confused

Last Thursday, during question time, Australia's worst ever treasurer, Joe Hockey, was asked to “outline how the government is building jobs, growth and opportunity and how will this assist all Australians.”

Last Thursday, during question time, Joe Hockey was asked to “outline how the government is building jobs, growth and opportunity and how will this assist all Australians.”

Bizarrely, he chose to respond by suggesting “there has been more good news today” in reference “average weekly earnings”, despite Australians’ earnings growing by less now than they have for more than 20 years. 

In delivering the “good news” Hockey told parliament that “the average wage in Australia has now increased to $76,800 a year. It increased by 2.8% this year”. He noted this meant the average wage for Australians “works out at $1,476.30 a week”.

Firstly, Hockey got a bit confused. The 2.8% growth referred to the original data, while the $1,476.30 referred to the trend data – which only grew by 2.7%. He was referring to full-time employment only, not the average earnings of all workers – that is just $1,128.90 a week. 

But what is worse is the treasurer’s suggestion that these growth figures were in any way “good news”.

They were, in fact, terrible. The 2.8% growth (or 2.7%, to use the trend data) was the third-worst annual growth going back to 1994. And the worst result occurred in the 12 months to May 2014 which saw just 2.4% growth what is worse is the treasurer’s suggestion that these growth figures were in any way “good news”.

They were, in fact, terrible. The 2.8% growth (or 2.7%, to use the trend data) was the third-worst annual growth going back to 1994. And the worst result occurred in the 12 months to May 2014 which saw just 2.4% growth.

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