The Election and the Economy - debt levels good or bad?

[Norwester]

Irony.....

Yeah,

I just voted as well.......funny about that...

A Victorian living in WA, but temporarily working back in Victoria,residing in a Labor heartland (Lalor), voting for a candidate in Perth Divsion who had a prediliction for roadside campaigning and doorknocking.......

Sometimes life is stranger than fiction.....

And no it wasnt Alannah (Photoshop Slush Puppy)McTiernan.

And as for the OP.

My belief is that government debt, unless for a specific purpose is a bad thing.........Whitlam fell for the same reasons these clowns are about to.

ciao

Nor

 

[Token Funder]

Hi TF,

My main beef with the current Labor Govt is the massive debt my kids and grandkids face, JH and PC cleaned up a nasty pile of doo doo left by the previous Labor govt and then increased spending once it was under control.

If the Labor government had done the same thing, ie: ran a tight ship for a year or two then spent the surplus I am good with that

Very, very different to having a party to buy friends and leaving the bill for someone else to pay

As I said, the Howard and Costello period was not characterised by fiscal restraint. The debt repaid (somewhat less than half of which was arguably Fraser/Howard debt to begin with) was repaid by $70 odd billion in asset sales rather than any attempt to restrain spending.

Then, with the debt down and tax receipts skyrocketing courtesy of big increases in CG tax and phase one of the mining boom, did we see restraint? No. Because there remains politcial value in giving people their own money back and calling it a gift, money starts starts getting poured from a height on pensioners, FHBs, private insurers and anyone capable of reproduction.

There's a reason the IMF describe Australia between 2003 and 2007 as in a period of fiscal profligacy.

It doesn't matter how much it is repeated or how much it becomes accepted wisdom. Howard was always a faux conservative on economic matters.

Regrettably, Abbot learnt at the knee of Howard and I am confident there will be a lot of chest thumping but little fiscal courage shown. The fact that he rejected a market-based carbon reduction mechanism in favour of direct government intervention tells us all we need to know about his credentials.

 

[The Fence]

Sure you are not just a littlei bitter there TF...?

Bloody beaut result IMO, sorry it does not suit your outlook on things, being minority view and all. Cheer up comrade.

 

[BayView]

The fact that he rejected a market-based carbon reduction mechanism in favour of direct government intervention tells us all we need to know about his credentials.

The sooner the whole world forgets the whole waste of time idea the better, for mine.

Prediction for the biggest rise in temps from carbon - 1/4000th of a degree.

Jesus H.

 

[Hoffy]

There's a reason the IMF describe Australia between 2003 and 2007 as in a period of fiscal profligacy.

No they didn't. The IMF specifically disclaimed that report as not being the view of the IMF. that is very well reported and acknowledged, yet people still claim it when it suits their argument.

The report you are referring to is also heavily discredited for its rationale and findings. And even if for some reason you still wanted to attach some credibility to it, you would have to acknowledge that the government spending it refers to is total govt spending including the States (nearly all Labor) as well.

 

[Macca]

Well, whatever our feelings we shall now just have to wait and see.

If the Liberals start racking up frivolous debts that they can't pay within the 3 year term I am going to be unhappy about that as well

 

[Crabnet]

Well, whatever our feelings we shall now just have to wait and see.

If the Liberals start racking up frivolous debts that they can't pay within the 3 year term I am going to be unhappy about that as well

The budget is already set to go in the right direction.
The coalition are keeping all of Labors budgeted savings except for the FBT rule changes. Other expenditure is being pushed out further so one would expect some surpluses in the medium term that will reduce our debt.
Their plan to rationalise some State and Federal public services may result in eventual savings, I suppose but theses things have a tendency to under deliver.
What we will have to wait for to improve income is the dollar to drop and GDP to rise back to trend.
Really we are at the mercy of overseas influences in that regard, but our economy has remained resilient enough to benefit from any upturn.
Hopefully we don't get that next recession any time soon.