First, Joe Hockey and
the Liberal Government must never be allowed to forget the standards they applied
when the Labor Government's predictions of a Budget Surplus did not eventuate
due to declining revenue. They insisted this was no excuse, and accused the
Government of incompetence and worse – Joe Hockey talked about people going to
jail over such matters. They said there would be no excuses.
Second, the big end of
town and their Liberal Party and media cheer squad will try to use the
deteriorating Budget position to promote their ideological agenda of cutting
back Government spending, jobs and services. No matter what the state of the
economy they always advance this agenda. But Joe Hockey's Budget has damaged
consumer confidence and contributed to the rising Budget Deficit and rising
unemployment we now see. It was a shock, not a shock absorber. Austerity
measures in Europe following the GFC made those economies worse. They didn't
work there and they won't work here.
Third, it is possible
to balance the books without taking the axe to health, education, or pensions.
The Liberal Government has chosen to greatly increase Australia's defence
spending to 2 per cent of GDP. This is an arbitrary figure and an increase
which will not make Australia a safer place. We could do much more to close tax
breaks both offshore and onshore, which have increased substantially in recent
years. We don't need to continue negative gearing, which costs taxpayers dearly
and pushes up the cost of housing at the expense of young Australian homebuyers
who can't afford to buy a home.
Fourth, we have pursued
policies for years now of globalisation and free trade which have promoted
mining and damaged manufacturing. This was very short-sighted. For years I and
others have pointed out that we should be doing more to spread the benefits of
the mining boom, and that it was foolish to put all our eggs in the mining
basket, and allow the dollar to rise and kill off manufacturing. Our economy
has become too narrow, and we are way too vulnerable to things like a fall in
commodity prices. The free trade fundamentalists have left us vulnerable and
exposed.
Finally, we have lost interest in the current account deficit and the national debt. There was a time when the Liberal Party rolled out a "Debt Truck" to draw public attention to our trade imbalance and our overseas debt. But while the current account deficit and the overseas debt turned the Debt Truck into a metaphorical Road Train or Ocean Liner, they lost interest in this. Instead of encouraging household saving and investment by Australian owned companies or superannuation funds, they think foreign debt is not a problem provided it is turned into equity – selling off the farm. Again this is an incredibly short-sighted view and a recipe for Budget Deficits as far as the eye can see.
Our economy has certainly become too narrow! Much of our economy has become reliant on housing and real estate, and rising house prices have become an indication of economic health! What's not equated is the cost of growth. Already Australia is sinking into deficit for infrastructure, and living conditions are falling. The neo-liberal policies are all about "the economy", not on human well-being. If we are struggling to maintain our budget, the most illogical thing to do is to keep on the same track of high population growth! If families are struggling, they shouldn't keep having more babies. It's assumed that the great break, of a budget surplus, is just around the corner. It's a gamble. We are leaving a heavy load for future generations to inherit, of debt, a struggle to maintain jobs and living standards and all the "challenges" ahead globally. Population growth now is theft of future generations, who'll inherit an economy, and planet, already at its peak!
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