Albo Not Knowing The Cash Rate or Unemployment Rate Is Worrying

https://www.news.com.au/national/federal-election/anthony-al…

how the hell can this guy be the leader of the opposition?

literally the 2 big issues us Australians are facing are employment/under employment and housing costs/cost of living guy doesn't know basic figures that you would expect every MP to know…..

is there no one else!? dead set this guy is worse then Shorten….every time he opens his mouth i think he is a fraud who knows jack all about the job he is going for…

i think i would honestly accept him getting the unemployment rate wrong because the number changes every 1/4 but the cash rate has been at 0.1 percent since November 2020 thats almost 2 years. Albo is trying to be the next PM and he studied finance how the hell could he not know what the cash rate is….

i know this place is a LNP hate fest but considering most people here want love the ALP to win and they 'probably will' but this has to be concerning that this guy is leading the ALP.


for people saying this isnt a big deal - it is actually huge it is a massive gaff and it is something that any MP let alone future PM should know, i think the 'bias' to ALP kind of shines though on OZbargin - i guess will see how things go on May 21

Comments

  • +248

    I saw the clip… but reality is no one can provide detail about every aspect of their job. PM and Albo are both being shot questions deliberately to catch them out to make news.

    • +133

      ScoMo was asked the price of bread and milk at the press club a couple of months ago. He admitted he didn’t know the answer.

      It’s a favourite gotcha of the press.
      That said, I am surprised both weren’t better briefed.

      • +42

        The price of a loaf of bread at Woolies is a bit different to such a fundamental issue of knowing what the RBA cash rate is

        • +85

          Were you worried when John Howard didn't know it? Mr Howard, who has literally come out of the wood-works to comment on Albo's "gaffe" with these choice words: "So what?"

          • +44

            @ThithLord:

            "So what?"

            Agree with Howard. Knowing these figures wouldn't make much of a difference (the only difference it will make you look like you know something). Politician's focus should be on how to create more jobs and increase wages, improve economy by investing infrastructure etc

            • +36

              @htc: The unemployment figures are very bogus anyway. Same as inflation figures.

              Source: Am an economist who trades finance markets.

              • +2

                @StorminNorman: What are the real figures?

                • @retailsaver: I second this question. How much fudging are there

                • +18

                  @retailsaver: Much higher for both.

                  Inflation doesn't include asset price inflation (which many would argue it should) and unemployment rate under reports those who've given up looking for work or under employed in casual/part-time/gig economy.

                  If the true unemployment rate was 4%, wages would have much more upward pressure.

                  • +3

                    @StorminNorman: Agreed with StorminNorman

                    Not only that, it's not simple to judge a health of your citizens' financial stance. Certainly not through just unemployment rate. Or GDP. Or Average Wage. Or the taxes paid.

                    You need many data points.
                    The best single-point would be to look at Bank Accounts of households. How much went in for the year, how much went out, and what is the positive/negative difference of the figures from that previous year (savings, or investment, or interest charged). With modern computing and Big Data, these conclusions can be made.

              • @StorminNorman: Hmm, we share the same background - I traded the global finance markets for 25 years, in London, NYK Chicago, Japan, Singapore

              • @StorminNorman: Albo also claims to have the economics knowledge but do you see the difference?

                the way you say it and the way Albo said

                you sound confident in your statement, saying you do not know what the "real" unemployment rate is but it is definitely higher than what is presented by LNP

                I wish Albo had defended himself by saying what you are saying

            • +7

              @treeman: Treeman - I hope to the almighty deity that that is the case. That would make my week. A real case of schadenfreude if old Howard thought it was SloMo he was coming to the rescue of, but it was actually Albo LMAO

            • +7

              @treeman: Scott Morrison is running out of friends in the Liberal party, he was chosen on the basis of electability not on any ideological goals. We've already seen how quickly people turn on him once they leave politic's. Personally hopping for a bloodbath so the liberals can return to their roots as a party based around strong economics rather than spending far too much time discuss people genitals and what they choose to do with them.

              • +8

                @Krankite: 1983 Malcom Fraser (Lib) Australia ranked 20th in global economy when he was voted out
                1996 Paul Keating (Labor) economy ranked 6th globally on exit.
                2007 John Howard (Lib) economy ranked 10th globally on exit.
                2013 Julia Gillard (Labor) economy ranked 1st globally on exit.
                2015 Malcom Turnbull (Lib) economy ranked 10th globally and LAST in OECD countries.

                • +5

                  @grr1701:

                  10th globally and LAST in OECD countries

                  How is that possible when there were 34 OECD member countries at the time (38 now)?

                  • +7

                    @Meconium: In 2015, 5 out of 6 key indicators of the economy were DETERIORATING, which placed them in last position out of the (then) 34 OECD countries.

                • +2

                  @grr1701: What was the rank when Rudd was exited.?

                  • +11

                    @t_c: 1st, mate

                  • +7

                    @t_c: Rudd was succeeded by Gillard (both Labor), so look at Gillard’s result.

                • +5

                  @grr1701: @grr1701,

                  Yep, really telling who the "best economic managers" are, every other country followed our stimulus plans we created during the GFC when covid hit, Australia did something different and was worse off (the Libs even had to ask Labor to make a stimulus plan which they changed anyway).

            • @treeman: Why did everyone neg me? All I was saying was he must have miss heard…

              • +1

                @treeman:

                All I was saying was he must have miss heard…

                he repeated the question, including the persons name, and then concluded his answer with 'So what'
                Unsure how you could claim possibly "miss hear" when he also clearly repeated the question.

                Blame his 'So what' response, which isn't in-line with LNP talking points on something else like his age/mental ability if you want, but surely cant be his hearing

                • -2

                  @SBOB: Okay well obviously that political reporter I heard was maybe misinformed.

              • +3

                @treeman: You ASSUMED he must have misheard, thus the negs.

                • @grr1701: Technically wasn't me it was the radio presenter.

                  • +1

                    @treeman: Has the radio announcer linked in any way to Murdoch? That could explain HIS spin.

        • +29

          Is it actually that fundamental, though? The govt doesn't control the RBA, and it doesn't affect announced policy ("Can't commit to aged care pay increases, don't know the precise cash rate").

          It's a gotcha question - makes a good soundbyte, but it (like the price of bread and milk) is a distraction.

          FWIW, I think he made a good point at ScoMo's cost in responding to his error: "Earlier today, I made a mistake. I’m human. But when I make a mistake, I’ll ‘fess up to it, and I’ll set about correcting that mistake. I won’t blame someone else, I’ll accept responsibility,” Albanese later said.

        • +20

          Is it though? The cash rate is more detached from the rates people actually pay than ever, but everyone buys groceries. One is academic and the other shows an understanding of the issues that affect your constituents.

        • +12

          It also suggests the Scomo & Co are living a life better than avg Oz is and hence are far away from realities faced by them.

        • -3

          Exactly. All these ALP fanboys and their false equivalences. As part of his job he should know the unemployment rate, interest rate, etc, not what every item in a supermarket costs.

          • +13

            @GodsSon23: There is a looong list of absolutely f**ked things SloMo has gaffed, but you wanna focus on this?

            You guys are so sad

        • +6

          I agree that Albo should have known both. It was a big gaff. But in the overall scheme of things I think it's more important to ordinary Australians that their PM know the price of milk or bread ( said above ). It's a fair bot more relevant I would have thought.

          • @gravel: Price of bread and milk vary. That's not something people can answer with a figure.
            You've got woollies milk to a2 milk to milk derivatives. Honestly it's a stupid question.
            Same as bread rang from cheap bread to expensive bread.

            • @maverickjohn: If he had any clue whatsoever he would've replied with exactly as you said instead he just bumbled through it. I'm sure 90% of the working class could give a rough answer i know i could.

        • +4

          I pay for our groceries every week, but I couldn’t tell you the price of bread (so much variety) or eggs (always cage free). I also couldn’t state the rubbish unemployment figure at the moment or the cash rate. What I DO know is the we need a government to honestly address Climate Change, or all those other figures are irrelevant. We need a government to take action on health and hospitals, aged care (very neglected) and public education. We need a government that actually gives a damn about wages being stripped back due to inflation. ONE party either ignores all these issues or pays then lip service. One will at least TRY to address these issues.

      • +8

        I thought he was asked the price of bread/milk, petrol and RAT tests which he didnt know. Morrison was very cunning and turned it to bread and milk as less of an issue- at the time escalating petrol prices and limited RAT tests it was a huge issue of politicians being out of touch.

        • -2

          Knowing the current retail price for something you do not purchase yourself is irrelevant.
          You can literally ask about 100's of thousands of items that they would never buy and never memorise the prices of…

          Knowing key economic indicators that are discussed daily in parliament as part of your job suggests you either have a really bad memory, do not pay attention or are just dumb….

          • @jv: Nah, I am with you for the day to day job coverage but not for the retail price of everyday items although it is ideal to find out more if required, JV.
            Cheers.

          • +3

            @jv: Don't know why people are downvoting you. You are correct.

          • +5

            @jv: JV you keep ignoring my comments RE: SloMo making the same gaffe as Albo, two weeks ago. Why is that?

          • +5

            @jv: The cash rate isn't an economic indicator. If anything, it's an economic setting.
            And the government doesn't really have any control over it.

          • +4

            @jv: The current retail price of something is a good indicator of cost-of-living - something very important this election. Bread and milk are the most popular shopping items.

            Both Scomo and Albo should have known better - but really memorizing this stuff which changes all the time isn't a good indication of good leadership.

        • +7

          IIRC he said that he himself went into a pharmacy to buy a RAT with his own money and turned out that his staffer bought it…

      • -4

        ScoMo was asked the price of bread and milk at the press club a couple of months ago. He admitted he didn’t know the answer.

        He most likely has not shopped for bread and milk for a very long time…

        Any senior minister should always know the unemployment rate and current reserve bank interest rates. Does he just sleep when sitting in parliament?

      • I thought your example as apples and oranges…but wait…it is apples and pumpkin.

      • +1

        ScoMo could have picked any amount between $2 and $12 for bread and between $1 and $5 for milk. All would have been correct.

    • +16

      I don't expect either of them to know every detail. But basic details like the unemployment numbers and the interest rates, both of which are central political issues at play I do expect them to know. Whats more they know the press love to try to catch them out so knowing the basics are bloody critical.

      • +12

        Why do they need to be able to give an exact figure off the top of their head? They're not the only two important statistics and it's a trivial exercise to look them up.

        Just because you can't give an exact figure at that very moment doesn't mean you don't know what's going on.

        Does a CEO of a company know every stat and figure committed to memory? No, of course not - but they have access to that information or the people that have that information.

        Instead of focusing on how many stats one can recite from memory, why not focus on actual policy? The media asks empty questions like this because they provide a gotcha moment if they can't answer, but doesn't give them any room to impress anyone with their answer if it's correct - and unfortunately some people eat it up.

        • +10

          Most CEO's that are even half competent will absolutely be able to tell you off the top of their head the approximate Shareprice, PE ratio, Annual revenue, profit margin etc. Any that can't shouldn't be a CEO. We aren't talking about obscure items here. In the end I don't think it is a huge issue, but it certainly is a bad look when these are two Key areas he is claiming he will do better at.

          • @gromit: The key to your statement here is ‘approximate’.
            If Albo stated the approximate number, instead of the intellectually honest thing of stating he didn’t know the exact number, it would have looked much worse

      • +2

        Not knowing the official unemployment rate is forgivable as it is a VERY misleading figure, which gives no indication of the reality of people's employment (many have given up finding proper work or are under-employed in low hours/unreliable casual work, and these facts do not show up in the official figure). Albo definitely knows this, and so the official unemployment rate is not so important to him.

        But it is very strange that he didn't know the cash rate. I just assume his head is so full of more meaningful information that this information slipped out. The fact is, the brain only has enough room for a certain amount of information. As we create new memories, older memories gets squeezed out. This is supported by scientific data. Information only sticks if we review it frequently/occasionally. Also, the cash rate is not the same as the interest rate.

    • +1

      Agreed. But a bad look if you believe cost of living and employment are the biggest issues facing Australians.

      • +3

        Is unemployment one of the biggest issues facing Australia?

        • +21

          underemployment rate and casualisation of the workforce are way bigger issue than unemployment rate. at this point the unemployment rate is a worthless statistic.

          I'm guessing the cash rate is important to LNP voters because they can afford to enter the home market, probably with investment properties to boot.

        • +1

          Employment rate of backpackers and 457 visa holders is the important thing.
          Wait for unemployment to increase over the coming quarters thanks to the reintroduction of these workforces

    • -2

      Brought a retired but very well vetted scicologyst to a Bill Shorton election campaign. Ok this was before the last election.
      B.S. had an amazing strength to come up with words that sounded convincing and right.
      After an hour of close up grilling he eventually slipped out the back door and had a decoy runaway vehicle, a neutral van. His entourage left with 2 old Govt Fairlane Limos.

    • +3

      "Google it, mate"

    • -4

      So Albo promises to save our jobs and boost the economy without even knowing the fundamental basics of it - no big deal.

      Scomo trying to shake hands with a bushfire victim - OMG what a tool, such a disgrace PM fjdkrbrbU!!!

      Australian politics keeping it classy.

    • +2

      I would rather someone who forgets a few details than a man who confidently lies.

      Can you imagine a situation where the LNP is voted back in just because Albo couldn't remember some figures? I find it hard to believe that any thinking Australian would use that petty reason to inflict years more of lies, vilification, rorts and inaction on important issues like climate change and international relations.

  • +179

    At least Albo took responsibility and was honest and said he didn't know.

    If Scomo was put in the same position he'd either lie or blame someone else

    • +67

      Scomo would deflect/ blame a minority group/ go off on a tangent eg ‘how goods the cricket!?’

      • +32

        Spot on. And yesterday the PM would not explain what was happening with Alan Tudge.
        He's been out of the Cabinet (earlier he said he was still in th Cabinet) because of alleged physical actions against a female staff member. She's been paid $500,000..so something serious happened.
        And Morrison said if re elected Tudge would be back in the Caninet.
        Morrison changed the story twice, $500,000 of tax payers money as been spent, because of the actions of one his senior team and the media are going on about Albo not knowing a figure.
        Really!

    • +67

      Scomo would give his usual response: "Ermmm….. that's a matter for the states"

      • +9

        Scomo doing a total backflip on the flood relief package.

        Scomo day 1: flood relief is state responsibility
        Scomo day 2 after backlash: ok we’ll help OH JEEZ UNCLE SCOMO THANKS FOR BEING A DECENT HUMAN BEING - ONLY HAD TO FACE PUBLIC BACKLASH.

        SERIOUSLY. THE STOOGE

        If Scomo gets back in we only have ourselves to blame.

        • +6

          You missed the part between day 1 and day 2 where marginal seats needed aid.

      • +6

        That's a matter for the states.

        That's a matter for the Minister.

        That's a border security matter, so I won't be commenting on it.

        That matter has been been reviewed and there has been nothing that hasn't met the standards set for Ministers, so as far as I'm concerned that matter is resolved.

        DENY, DEFLECT, DISTRACT.
        And when that doesn't work… FEAR.

        That's SloMo's Playbook. Deny any responsibility at all costs, and even when the facts are clear for anyone to see (like the $1Tril Debt), you still claim you are "better economic managers"…. and straight up lie. Better than who? Trump?

        SloMo has got to go!

    • +37

      Yeah I respect someone who can own up to not knowing shit.

      Agree with others - I'm an expert in my field but there's some shit I just don't know or haven't used in a while. So I need to ask someone else/use some reference for it.

      You're definitely making it out to be bigger than it is.

    • +3

      SloMo wouldn't answer the question wrong - he would just about-face and leave without answering.

    • +1

      The guys a goose.

      • +11

        Parliament doesn't sit every week. Maybe 16 or 17 weeks per year.

        https://www.pmc.gov.au/resource-centre/government/parliament…

        • -1

          "every week in parliament."

          • +3

            @jv: You obviously don't sit in parliament like some of us. Read the hansard.

            • -2

              @hearitfromhorse:

              You obviously don't sit in parliament like some of us

              Didn't need to…

              Both figures have been in the news in recent weeks…

              Maybe Aloofbo can't read?

          • @jv: How many weeks does Victora recognise as "working weeks" ?

      • +4

        I think the real point is that it's his job to come up with and influence the policy, not to quote statistics. There's the whole treasury department to do that 🤔

  • +86

    I'm with John Howard

    Okay, well Anthony Albanese didn’t know the unemployment rate. So what?

    • +28

      Yeah when even John Howard saying that you know it's a pointless thing.

      Not knowing figures on the spot only matters for pollies who make policy on the run at pressers :P

    • +15

      I'm with John Howard

      That was a real burn against ScoMo trying to make a big deal out of it.

      Still … there's no denying it wasn't a good look.

    • Well said John Howard.

    • He was so friendly to veild black things yelling jihad and he never missed a chance to wish them Gesundheidt!

  • +135

    I’m more worried that the current Government has destroyed Australia - house prices are much worse, our security situation is worse, the freedoms we took for granted are diminishing, Homelessness is up, cost of living is up, national debt is up. Are we better as a country since the libs came to power? We are much worse. Another few years of the coalition would decimate the very idea of the Australia we once knew.

      • +60

        By blocking foreign ownership of houses like the nz labour government for a start

        • -1

          have you seen the state of the Nz economy…. and foreign ownership is not the reason we have high housing costs.

          also removing foreign ownership would reduce revenue …you want less debt but you offer a solution that results in less tax revenue

          • +6

            @Trying2SaveABuck: This is the correct answer!

            The true driver of real estate prices is cheap debt. The lower the interest rate, the cheaper it is to services a larger and larger debt, and the more people can borrow, the more they'll bid up asset prices.

            In Australia, non-residents cannot buy existing properties, they can however purchase OTP (off the plan) or knockdown-rebuilds, that's after they get FIRB approval. In NSW, foreign buyers must also pay an extra 8% duty on top of the transfer duty. Also, interestingly, permanent residents who have lived in Australia for less than 200 days since their last entry into Australia also counts as a foreign buyer and must pay the extra 8%. Ouch!

            In Australia, foreign buyers account for about 4%-5% of total real estate purchases, and the top buyers are Americans! So the whole rich asians are driving up house prices is not really true.

            This is from McGraths article FY20
            "Most investment (for all property including new and established residential and commercial) came from the US at $13 billion, followed by Singapore at $9.5 billion and mainland China at $7.1 billion."

            link here: https://www.mcgrath.com.au/advice/articles/john-mcgrath-fore…

            • +1

              @xavster: The true driver of property at the moment is a lack of ANY cap on negative gearing.

              Labor wanted to not remove negative gearing, but at least put some sort of minimal cap on it. Everyone should pay their fair share of tax, and not just funnel it to CBA for their profits instead.

              Investors can positively gear a property from day 1 these days due to low lending interest. A Labor government 3, 6, or 9 years ago would have prevented limited the property pain we are all in right now.

              No way LNP are limiting property investing, because out of all the parties they personally invest in property more than all the parties combined! Fact.

        • +6

          I doubt Labor will implement such a policy (blocking foreign ownership). I'm sure they won't be worse than the libs but ALP is planning to implement another FHB scheme that will prop up the market even more.

          • +1

            @Yoo: It is not. No policy on First Home buyers released.
            However Morrisoj will expand its scheme that enables first-home buyers to get into the property market with a five per cent deposit.
            This will keep the market buoyant and if prices fall, these people will have negative equity in their property.
            So stop blaming Labor.

            • +2

              @gar519: I read it on the Labor proposed policies.

              First home buyers will save up to $32,000 in mortgage insurance and be able to secure a home with a deposit as low as 5 per cent – with the government guaranteeing up to 15 per cent of the purchase price.

            • @gar519:

              if prices fall

              Imo the simplest way to make houses more "affordable". Not everyone wants cheap housing, so the question becomes how do we make houses affordable without stopping the housing market from rising.

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