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my clarity is a gust of wind, gone too soon (at home in the matrix)
my clarity is a gust of wind, gone too soon (at home in the matrix)
A comment on Mr Rudd and the economic crisis
Translations available in: English (original) | French | Spanish | Italian | German | Portuguese | Swedish | Russian | Dutch | Arabic

http://www.theage.com.au/opinion/goodbye-mr-kent-20081018-53mq.html?page=-1

Goodbye, Mr Kent

·         Paul Daley

·         October 19, 2008

IT'S amazing what a rush of Franklin D. Roosevelt can do to a prime minister's brain. One minute our PM Kevin Rudd is a super-cautious, process-obsessed, review-driven control freak. Then, after a few back-of-the-envelope sums with the man formerly known as The Least Confident Treasurer The World Has Ever Seen, he's blowing $10.4 billion of a budget surplus obsessively acquired over 12 years by The Least Relevant Former Treasurer The World Has Ever Seen.

Roosevelt, the inspirational Depression-era American president, liked to keep a lid on public expectations while at the same time taking drastic measures - overhauling the domestic economy, introducing the New Deal for the unemployed, enforcing price controls and reforming the banking system. He redefined American liberalism through radical government intervention.

Last week, Rudd had no qualms about channelling part of the Roosevelt strategy of invoking extreme economic measures while simultaneously talking down public expectations - even going so far as to borrow the president's famous quote that "we cannot ballyhoo ourselves back to prosperity".

While such artful appropriation of ballyhoo at a time of crisis has just given Kim "boondoggle" Beazley yet another reason to detest Rudd, our Prime Minister has also just gone from zero to hero when it comes to the politics of grand narrative.

One minute Rudd's critics and allies alike are pasting him for boring us senseless by failing to spin a so-called political narrative. The next thing you know he's banging on so assuredly about the threat of "extreme" capitalism, the implied venality of bank execs and the evils of avarice that you've got to wonder if the Booker Prize judges accidentally overlooked this particular morality tale by this particular loner who also happens to hold an Australian (though not an Indian) passport.

Seriously though, for some time Rudd has been trying to kickstart a debate about the obscene salaries and incentive payments trousered by some of the executives of Australia's retail and commercial banks. Fair enough - it's a worthy debate. But let's not confuse it with the current global economic and banking conflagration, triggered as it was by the subprime loans crisis that, in turn, stemmed from the genuinely immoral practices of some American lending institutions.

No. Compared to the odious banking practices in the under-regulated United States, where executive greed and apparent corporate malfeasance has undermined the financial viability of some institutions, all the Australian banks seem close to virtuous.

By all means let's try to lop a million or 10 off some bank chiefs' packages, but let us not confuse their pay with the solvency of the institutions they head. Naturally these guys and girls say they'd move overseas if their Australian packages were cut. That's not likely, you'd have to say, in this market.

Never deterred by Australia's place (island, down south) and influence (not much) in global politics, Rudd now wants the G20 nations to follow his lead on the banks.

No doubt some of our bankers are cursing the heavens at the injustice of it all. For how could such a shallow morality tale be brought to them by the wealthiest prime minister Australia has ever seen, and seconded, in a spirit of genuine bipartisanship, of course, by the wealthiest Liberal leader (and a former merchant banker, no less) known to this country?

It's all part of the New Kevin-ism, which is propelled and kept on compass by the ostensible modesty, parsimony, sobriety and consideration of its gestures.

This theme of low-key piety versus bellicose consumption has, from day one, been a critical part of Rudd's personal and political story. It's only now, with the image of an economic tsunami gathering off our coast, that it has begun to resonate.

Malcolm Turnbull has little choice. The timing of all this for him, having just assumed the leadership, is appalling. He can do little but feign bipartisanship while getting his shadow ministers to take niggling potshots from the side in the hope of scoring an inside page mention or two.

Offers of bipartisanship coupled with constant claims of "but we thought of it first" seem trite in the face of the current threat. But Turnbull is absolutely right to demand the economic data upon which the $10.4 billion bailout was based. In such threatening times, taxpayers could use the added assurance that the equations used to spend their money add up.

Times such as these are truly treacherous for opposition leaders. Kim Beazley might attest to that from his experience in 2001. Tacking to victory for most of that year, the hijacked planes of September 11 and the arrival of the Tampa changed the atmospherics dramatically.

Beazley's vacillation over the Tampa, in this febrile environment, was fatal.

Britain's Tory leader, David Cameron, meanwhile, is watching his hitherto extremely bright electoral prospects evaporate as Prime Minister Gordon Brown channels Winston Churchill … and FDR.

A few weeks ago, Brown's colleagues were plotting all sorts of strategies to replace their PM. Today, having effectively nationalised three of Britain's biggest banks before moving on to redesigning the global financial architecture, Brown has transformed himself from a ditherer to a doer. Brown was a confident and assured chancellor of the exchequer (equivalent to our treasurer) before he became a largely ineffectual, indecisive prime minister.

Which brings us back to Wayne Swan, formerly known as The Least Confident Treasurer The World Has Ever Seen. Suddenly he is channelling the pre-prime ministerial Brown.

Swan is operating with increasing assuredness as he administers the Australian inoculation program.

But he could make us feel better still as he sticks the needle in by showing us the sums.

What would FDR have done?

*Last week I incorrectly said new gun laws were introduced after the Port Arthur massacre in 1997. It was 1996.

Paul Daley is The Sunday Age's national political columnist.

 


October 20, 2008 | 6:33 AM Comments  0 comments

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