Business community wary of minority government
Published in the Queensland Times, September 2010 by Dale Gillham
The election is now over but we are still none the wiser as to the future direction of our country.
Even when we do find out the result, it is certain we will have a minority government which could spell disaster for our short term economic growth.
For the economy to grow business must grow, however, businesses need certainty before taking on the risks associated with expanding.
We are now seeing many companies putting off expansion plans and this has a flow-on effect for business borrowings, employment, and spending on infrastructure and other services.
Despite the recent economic conditions, we have had some good results in the current reporting season.
That said, if we are faced with a minority government over the next four years which may have its hands tied or its policies watered down, I would suggest we could be see a different picture in the years ahead.
While I believe the possibility of Australia falling into a recession is low, this is not something we can ignore - especially since the US is looking more and more like a basket case.
Given this, we need strong leadership and a strong government that can make decisions swiftly for the benefit of all Australians.
Maybe we should go back to the polls? But with the absence of any real strong leader would it be worth it?
The All Ordinaries Index has fallen away this week as expected, with the market down by around two percent from the open on Monday.
Looking at the Dow, I believe it is also falling with my forecast being that the low will be between 8,900 to 9,400 points in mid to late October.
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