Soft corruption

The 2014 budget is a corrupt document.

A few words about corruption are necessary. Much has been said about potential conflicts of interest and corruption on the part of Tony Abbott with regards to his daughters. Some have intimated that Tony Abbott was bought and paid for with a scholarship for Frances to the Whitehouse Institute of Design. It is important to be clear that it is unlikely that there is malfeasance or corruption (as legally defined) in either the scholarship for Frances Abbott, or the appointment of Louise Abbott to a plum post in Geneva.

In the case of Frances Abbott, it appears that the Whitehouse Institute sought her out, courted her for a position, and sealed the deal with the scholarship. This happened during Labor’s term in office when Tony Abbott was Opposition Leader. There has been an indication that having Frances Abbott associated with the college might be good for its profile, although I find this unconvincing; but having Frances Abbott associated with the college has certainly proved good for its budget and its future. The budget has, for the first time, allocated government funds to private educational institutes such as Whitehouse, which will be of direct financial benefit to the Institute. Nevertheless, I am not claiming that this is a quid pro quo for favours given to Tony Abbott’s daughter.

It doesn’t have to be.

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Solving the real problems

We have a budget problem.

It’s not a budget emergency. Everyone agrees about that… at least, everyone who understands about national finance and economics, which is unfortunately only a minority of the voting public, and none of the current Coalition government to hear them tell it.

By current standards, by any measures you care to name, Australia is currently doing very well compared to every other nation in the G20. Taking all of the various factors together, it’s impossible to deny that Australia is in the best economic state in the world.

The justification for immediate, sweeping, deep cuts to government expenditure is looking pretty shaky.

With that said, it is prudent for us to realise that Australia does face some severe fiscal challenges in the coming decades. Some of these are the result of demographics. Some are historical, and some are being wilfully ignored or exacerbated by the Coalition government’s policies.

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