Premier Campbell Newman made headlines when he declared that Queensland’s economic position is similar to that of Spain. His remarks reminded some commentators of Paul Keating’s famous forecast that Australia could become a banana republic, a comment that caused him to suffer a fair bit of flak for years afterwards.
Of course, Newman knows, as we do, that Queensland’s position is nothing like that of Spain. His State has the backing of a strong Australian dollar, while Spain is tied to the Euro which is well on its way to being a terminal currency. Spain has 25 per cent of its population unemployed, whereas Queensland’s percentage is one quarter of that. Additionally, Queensland’s debt, and that of Australia, is miniscule compared with Spain’s.
So, why did Campbell Newman make such a dramatic statement? Continue reading “The pain of being like Spain”