Politics With Michelle Grattan

When Treasurer Josh Frydenberg joined the podcast in December, the outlook was positive. While the forecast deficit was massive at nearly $200 billion, it had been revised down and the prospects for growth and employment revised up.  Frydenberg said then: "Australians go into Christmas with real cause for optimism and hope". But the economic climate now is bleaker. And very uncertain. With the September quarter set to be negative, and the December quarter dependent on New South Wales' ability to get on top of the virus, a second recession can't be ruled out. But joining The Conversation podcast this week, Frydenberg looks for some silver linings. He says a likely contraction of "about 1.5%" in the September quarter would be considerably less drastic than the 7% contraction the economy saw in the June quarter of last year.  "Consumer spending is about 30% higher today than it was in March and April last year.  "Consumer confidence, similarly, is around 30% higher than it was back then". And the latest jobs num