Ok, enough of this now. The Howard years were fortunate ones lining up the the infrastructure period of the mining boom, the Rudd/Gillard years however lined up exactly with the GFC. Now it doesnt take a genius to look up the fiscal graphs on our own government website to see the real picture. Expenditure during the Rudd/Gillard government was indeed a little higher than that of the Howard years, HOWEVER, during the Howard years, revenue peaked at over 26% GDP and was very steady around that 26% mark whilst expenditure stayed between 24-25% GDP, if we were to project the spending during the Rudd/Gillard years over the Howard years, Australia would still have seen a surplus, because there was just so much money coming in. Move into the Rudd/Gillard years and within 2 short years due to the GFC revenue dropped a staggering 4% GDP. If Howard was in power during those years, we would have still accrued debt. The major reason for our current debt was the sudden drop in revenue due to the GFC, not unwieldy expenditure which was sitting at just over 25% GDP on average. The biggest fallacy that exists in our society right this second is that Australia wasn’t affected by the GFC because we didnt go into recession, well the data proves we were affected, and the sudden drop in revenue is the main reason for our current fiscal position. Furthermore, the graphs clearly show a steady upward trend of revenue rising from the worst of the GFC, continuing that trend would have put us into a budget surplus somewhere around the 2017 mark (based off the graph) if the trend were to continue. Now, I just wish people would stop pedaling this political crap that “Labor put us in this mess and now we have to clean it up”, this mess would have been about the same regardless of the Government in power at the time. I’m not saying Labor was perfect, but those who agree so strongly with this current government about our fiscal position, the (false) reasons for it, and then letting the current government restructure our society whilst potentially driving us into a recession based off these flat out lies really need to get off the band wagon and educate themselves in the realities of the situation. There’s no doubt we’re currently in debt, and need to rein this debt in somewhat, but many factors must be considered, it’s useless saving $20 billion in potential debt interest if we lose much more than that in the falling of our GDP. ( est at $30 Billion or 2% by economists by 2017 if all measures introduced)
Posted on: Mon, 26 May 2014 00:40:58 +0000
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