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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Worse than disrespect

On the face of it, Joe Hockey’s statement that talking about things like “costings” in this election campaign will bore everyone to death seems like run-of-the-mill disrespect for the electorate. After all, we’re in week two of an official election campaign, and spin and mistruths are par for the course regardless of your poison of choice. (Actually, this is not quite true: I cannot find any examples of egregious mistruth or deliberate spin in any statements by the Australian Greens. This may simply reflect that they have such a low proportion of the media coverage.) Continue reading