Wesfarmers MD Richard Goyder told an investor conference the budget reaction is too focused on household incomes that will be cut.
“My disappointment in the reaction to the budget is the conversation has been about what the cost to people is…rather than what are the options,” Goyder said according the AFR.
“A household has a limited income and therefore has to cut its cloth in terms of expenses and make choices,” he said.
“I’m disappointed a lot of the commentary hasn’t been about the choices that need to be made.”
“The Australian economy needs to have resilience to future shocks. My disappointment is the conversation hasn’t turned to lets have a discussion about what we can afford and what we can’t afford.”
“It’s turned into a political fight about what initiatives are in the budget rather than a conversation about what is the right shape of the budget.”
It’s interesting in the context of data released yesterday showing Australian consumer confidence is now at its lowest level since May 2009. Less confidence means less spending and this will hit the domestic economy across many different sectors.
There’s more here.