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.
There are at least two fundamental requirements for a functioning democracy. In various ways, in recent years, we have seen political parties in Australia attempting to subvert and limit these requirements. This is an assault on democracy itself. It may not be deliberate – political parties, like business entities, will work within the constraints of the law to achieve their ends, and loopholes and aggressive tactics are a part of the game. But dress it up how you may, attempting to coerce the workings of parliament and the electoral choices of a population is anti-democratic even if done within the limitations of the laws of that democracy.
In the business sphere, there is an overarching structure to act as a check and balance. The courts, and above them the legislature, ensure that eventually businesses that exploit loopholes to the detriment of the community can be brought back into line. Through the testing of legislation in the courts, through the drafting of new laws and regulations, there are means to help ensure that the system is fluid and no entities can subvert the intention of the regulations to which all businesses are subject.
Politics has no such overarching structure. The limits on politics are the various parties themselves – where one party oversteps the bounds, the only bodies that can pull them up on it are other political parties. Some of the time this works. And sometimes it does not.
In the aftermath of the 2013 Australian election, I spoke to a variety of my friends and colleagues about the core issues that motivated my voting intention. Chief amongst these was the issue of climate change, and the various parties’ approach to Labor’s ETS or another alternative. I voted below the line and took into account several important areas of policy, to the extent it was known, but the primary consideration for me was climate change.
In many cases during my discussions, I was disheartened to hear that climate change just wasn’t top of mind for these people I valued. For them, other issues took priority: Australia’s budget, its productivity, its two-tiered economy. There were others for whom provision of healthcare, education, housing and social benefits were of higher import. And there were some for whom the key issue was the two parties’ policies on refugees and boat arrivals.
What people perhaps fail to fully understand is that climate change will fundamentally alter every aspect of life and governance in this country and around the world. It is already having adverse effects on health, on productivity, on national economies and on food production. And all the scientists tell us that we are on the cusp of a downward slope, that things will get far worse from here. Continue reading