The execution of Philip Lowe on Friday displays what is to me a worrying dismissal of the responsibilities the government holds over the fate of the economy.
This is despite the polite words of mutual admiration and respect, that is what it was, an execution. While not unexpected, one party just decided it was not in their interests to have the other around any longer.
It is not just this current government, but the 4 or 5, or is it 6, previous ones that have seeded the field that is now being so bitterly harvested. The rot seems to have started in the latter stages of the Howard government, when the kindergarten defence: ‘it was the other kid‘, became the norm.
Nobody in power seems to be able to shoulder responsibility for anything anymore, always pointing fingers, rarely (if ever) offering thoughtful commentary on alternative choices. Meanwhile, they stand in line for a medal if anything, even well beyond their control goes well, claiming that despite all evidence to the contrary, the good outcome is the result of their farsighted and selfless dedication to the common good.
I am not an economist, and have little beyond common sense and a wide range of commercial experience gained over a long period. However, if I was asked to manage a company while being given only very indirect control over the drivers of revenue and expenditure, I would have to politely decline.
The reserve bank governor is the spokesperson for the bank, an independent body charged with managing the cost of doing business in the economy: the cost of money. That is all it can do. Every other lever of control of economic activity is in the hands of others.
Those others have done a ‘Lady McBeth’ washing their hands of any responsibility for the current difficulties, while celebrating the change. The elevation of the current deputy governor Michele Bullock to the top hot seat and expecting her to fix problems of their making better than her predecessor, is a hollow hope. Meanwhile, on top of the day job, Ms. Bullock is being tasked with the redirection and renewal of the culture that delivered the top job to her, while overseeing the changes in the operational processes recommended by the Reserve bank review.
Good luck with all that herculean set of tasks, but somebody has to be in line to be the fall guy. I keep on having visions of deck chairs and icebergs.
Cartoon credit: John Kudelka ‘Friendly fire’ April 8 2011.
