The retail sector has been particularly flat, although some services have been doing okay. Wage and inflation numbers are weak, the transition from mining to non-mining investment is proving much slower than had been hoped or predicted, and although our trade numbers have been strong, this has mostly reflected a pick-up in prices, rather than volumes.

While the Reserve Bank might otherwise wish to lower interest rates further to stimulate the economy, they are most reluctant to do so for fear of further feeding the housing bubble, and the budget repair task has been left to drift, such that coming budgets must be contractionary if the government is to avoid a downgrade in our AAA credit rating.

More broad-based economic and social reform is pretty much off the political/policy agenda, as the electorate is suffering an advanced case of ‘reform fatigue’, and the hope of achieving what would be essential bi-partisanship, with an emboldened opposition, and a hostile senate, almost a fanciful desire.

Of course, the government won’t admit any of this, preferring to attempt to ‘spin’ the situation, rather than to face reality, and reluctant to lead by enunciating a new strategy which might see us trade out of this situation in the medium-term.

However, this doesn’t stop them ‘promising BIG’, as, for example, we are being told that the forthcoming budget will provide a ‘solution’ to the housing affordability crisis.

Yet, again, rather than face reality on this issue, recognizing its complexity, with overlapping State and Federal powers and responsibilities, and significant demand and supply challenges, with the problem having been left to drift for decades, the image being created is that they will deliver an instantaneous, ‘silver bullet’ solution, concentrating mostly on ‘housing supply’.

Basically, their hope is to ‘muddle through’, rather than to have to genuinely ‘solve’ the problem.

Is it any wonder that we are now seeing mounting voter dissatisfaction and disillusionment with the major parties and the political process, especially as many feel neglected and excluded from the process, and from the economic growth we have enjoyed?

With wage increases at an historic low, but with key ‘prices’ – power, phone/data, health and other insurances, child, aged care and school fees, rents and housing, and so on – increasing much faster, average Australians are struggling at a time of mounting job insecurity, all against the background of a very uncertain and unpredictable global economic and geo-political environment.

Most voters understand that government is very difficult in these circumstances, but they pine for honesty, and genuine commitment from government to understand their plight, and to start to deliver policies that address the costs and issues with which they have to deal in their daily lives.

Talk of yet another ‘welfare crackdown’, or yet another ‘onslaught on multinationals’ who aren’t paying their ‘fair share’ of tax, in the absence of genuine reform of government spending and of our tax system, rings particularly hollow. Likewise promises of improvements in health and education.

The budget on May 9 offers the government a chance to tell the truth and to reset its agenda. It is imperative that they do so!