What Gillard said might work in the very long run, but she and her government have not demonstrated how to make up for short to medium runs of their strategy to work.
The problem is that the short to medium runs are crucial for the nation and for a government, particularly so when it has been struggling enormously already.
Inevitably Gillard and her government are going to fail in designing a workable strategy and a set of policies to survive long enough of the short to medium runs.
Her alliance with the Greens means it is impossible for her to be flexible enough on the carbon tax to make it work effectively and to the best of our national interests.
Gillard has also swung the IR system too much into the area of inflexibility.
The political need for her government to show it is able to produce a budget surplus means there will not enough investment in productivity and critical infrastructure, especially in the context of the huge investment used for the NBN.
Low productivity growth will make impossible to deal with the adverse impact of the mining boom on most other sectors effectively.
Unfortunately for her, Australians on longer have any patience with Gillard and her government. And that will be fatal for her government.
It is political impossibility. What she is saying is likely to be perceived as stubbornness and silly political rhetoric of a person out of touch and with ignorance.