Reserve Bank Governor, Glenn Stevens, has given reporters a no-holds-barred description of the economy and what it is going to take to fix it.

Mr Stevens took aim at the expectations of Australians today calling the constituency ‘a bunch of whingers’. Mr Stevens said this as data shows the public’s reliance on government support is growing to unsustainable levels. Half of all Australian households now receive some form of government support. Businesses too (both large and small), are seeking more and more concessions and capital injections.

These ever growing payments are being gouged from an ever dwindling number of earners. Not only does this act as a disincentive to work, it also takes money that could be used to create new markets and products, thereby stifling further growth.

RBA Governor Glen Stevens.

RBA Governor Glen Stevens.

Mr Stevens was blunt about the state of the economy – it needs fixing. ‘The kitty is bare,’ he told reporters. He warned that the Reserve Bank had done about as much as it could do with interest rates saying, “I have allowed the horse to come to the water of cheap funding. I cannot make it drink.”

What Mr Stevens means is that the government now has to back an entrepreneurial culture. Without risk there is no reward. Slashing red tape and simplifying regulations governing Australian businesses goes some way towards that.

However, politicians are pandering to where the votes are – to those receiving the wealth rather than those who could generate it. And while this happens the economy will continue down the same path.

Mr Stevens was adamant, we will not like where the path leads.

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