Four sharp pains to business confidence

Mining, retail, the automotive industry and public service are understandably nervous as the walls crack around them. But the government is flat footed on the problems.

The big fall in business confidence last month was no accident. Abolishing the carbon tax and making government more efficient are important, but business is reacting nervously to other events that go to the heart of the level of prosperity we will encounter in the next three years.

Unfortunately, so far the Abbott government has yet to publicly recognise that these issues exist, let alone start devising a plan to deal with them.

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