No doubt because Malcolm Turnbull has demonstrated his stunning grasp of economics yet again by claiming that the Commonwealth budget going into deficit is some sort of yardstick of economic failure, there’s been an immense amount of commentary on Kevin Rudd and Wayne Swan’s willingness to utter the word “deficit”. The latest instalment in the saga is documented by Peter Martin here - Rudd’s conceded that Australia may have to sustain a “temporary deficit”.

Just as Turnbull is privileging politics over economics, so too the Rudd government’s tactics are - in part - about politics. I’m surprised, though, that there hasn’t been a lot of sensible discussion about what they are up to politically. Guy Beres provides a corrective:

In short, Kevin Rudd’s personal approach to the economic situation as Prime Minister seems to revolve around straight talking, with a cautiously pessimistic bent. If things could get worse, then the Prime Minister seems to want to make it clear to everyone that they should be prepared for things getting worse. Rather than trying to create an oasis of blissfully ignorant confidence at the head of government - something the Howard Government probably would have done in the same position.