Will the PUP alliance with Labor and the Greens make Australia ungovernable?

Clive Palmer’s PUP Senators have just voted with Labor and the Greens to reject the Government’s attempt to repeal the Carbon Tax and its associated “compensation” arrangements.

Palmer’s PUP also looks as if it will oppose much if not all of the Government’s proposals to move toward a balanced Budget. Basically, this means that as of today, the massive deficits will roll on.

Today’s antics in the Senate will do nothing to engender confidence, especially amongst Australia’s small-medium business community. Small businesses alone account for some 50% of total employment. If the uncertainty around the Abbott government’s ability to implement it’s economic policies continues for any length of time, the private sector will step back and growth will stall.

We can then expect a serious slowdown in the economy, accompanied by a spike in both unemployment and under-employment. The move to casualisation in the workplace will accelerate, with serious implications for the home-building, financial and retail sectors.

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