Could the cost of living be Abbott’s undoing?

Tony Abbott has created the perception the carbon price will cause the cost of living to surge. When he is found to be wrong, his job will become a lot harder.

Much has been made of the importance of cost of living issues in the decisive victory by the Liberal National Party in the recent Queensland election. Many pundits are suggesting this will also be the undoing of the Gillard Government due to the carbon price. But politicians need to be very careful in pandering to the mob’s demands to lower the price of bread.

Kevin Rudd tried the trick of pretending he could do something to lower grocery and petrol prices (anyone remember ‘grocery watch’?). It helped get him elected, but then he was ultimately caught out when he couldn’t deliver.

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