Blame the middle class, not the Greek

The real similarity between Greece and Australia is not productivity, nor an overvalued currency, but the culture of entitlement both nations have developed.

Business Spectator’s Robert Gottliebsen today describes how Australia has caught the Greek disease of low productivity and an overvalued currency (Australians are catching the Greek disease, May 15).

This is interesting as just last week Robert was bleating on behalf of Australia’s middle class welfare state (Federal Budget 2012: Ripping in to middle Australia, May 8).

Australia’s productivity has stagnated over the last 15 years, but unlike Greece the ten years before that was a period of massive reform to both employment practices and government spending.

The structure of the Australian economy is very different, not least in its openness, to that of Greece.

What’s more Australia has a floating currency which will eventually correct itself unlike the euro that Greece finds itself trapped in.

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