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.