"We need to respect the intelligence of the Australian people," declared Malcolm Turnbull as he publicly unveiled his leadership challenge. He can start by telling the truth about the economy.

The talk has been of a glass half-full under Treasurer Joe Hockey, even a glass brimming over.

The creation of 300,000 jobs. Higher wages. All is well.

The intelligent public is not buying it, for good reason.

At 2 per cent, economic growth is tepid and well below trend.

The unemployment rate has been stuck above 6 per cent for 15 months, and that understates the lack of job opportunities.

Measured by the broader labour utilisation rate, nearly 15 per cent of the labour force either cannot get a job or cannot find enough hours.

Despite the Government's boasts, job creation is not keeping pace with population growth. Without improvement, the level of unemployment and under-employment is destined to rise.

Productivity growth is weak. Business investment is in sharp decline.

Wages are stagnant; the most reliable measure, the Wage Price Index, is growing at the lowest pace on record.

Yet house prices are stratospheric in the major capitals and well beyond the reach of many.

Little wonder the public is cynical about the 'good times' sloganeering.

Although a recession is not imminent, despite the Government's denials, it is a real possibility.

A weakening economy in China is undermining Australia's prospects, just as it boosted them for so long.

Across the globe, the hangover of the global financial crisis has left much of the Western world plagued by sluggish economic conditions.

Whereas inflation threatened in previous decades, the spectre of deflation is haunting Europe, and North America.

Australia has enjoyed 25 years of continuous economic expansion, but how long can it last?

The world record for an uninterrupted period free of recession is 27 years - in the Netherlands before the GFC.

It will take a deal of luck and deft management if Australia is to make economic history.

Mr Turnbull appears optimistic.

The former internet entrepreneur and investment banker sees a world of opportunity for Australia, as disruptive technologies create new enterprises, industries and opportunities.

He sees a country with amazing opportunities for trade and engagement with the emerging market of Asia.

Tony Abbott thought coal was king; Mr Turnbull's first speech as PM-designate emphasised the industries of the future and innovation.

But how will his government help position Australia to seize these opportunities?

Mr Turnbull will be under pressure from sections of big business and related lobby groups to cut company tax and personal income taxes; to move more towards a 'user pays' model of service provision in health and education; to cut penalty rates for workers.

But Mr Hockey's disastrous first budget is a reminder that any changes that fail the test of fairness are likely to provoke a backlash from the electorate.

Will that temper Mr Turnbull's willingness to adopt the blueprint set out by former Business Council of Australia president Tony Shepherd in his "audit" for the Abbott government?

To what extend might this "1 per center", the richest man in Parliament, who represents the richest electorate in the country, be influenced by concerns about rising inequalities of wealth and opportunity?

We know that Mr Turnbull believes the Government has failed to explain the case for economic "reform"; we are yet to hear precisely how his version of "reform" is defined.