An election hasn’t even been called and already Labor are burying us under debt, in a desperate attempt to buy votes. In just the last fortnight, tens of billions of taxpayer’s money has been promised to the leaner class. So much for Labor’s claims to ‘fiscal responsibility’: those windfall surpluses of the last couple of years, courtesy of stronger-than-expected Chinese demand or iron ore, are finally exposed for what they are: an aberration from the spendthrift socialists.
The amount of our money that Albanese and Co are prepared to splurge to save their failing government is astonishing.
Jim Chalmers’ debt outlook has worsened amid a pre-election spending splurge of more than $67bn in three months, with both gross debt as a percentage of GDP and its expected peak projected to be higher than forecast in last year’s federal budget.
As a result, debt is soaring ever higher.
As Anthony Albanese sprays pre-election funding in marginal seats across the country, the nation’s gross debt is expected now to peak at 37 per cent of GDP, up from 35.2 per cent forecast by Treasury 10 months ago.
The updated projections, which will show gross debt hitting $940bn this financial year at about 36 per cent of GDP, emerge at a time when gross debt as a share of the economy would typically fall if economic growth lifted while borrowing remained constrained.
So we’re back to Labor business-as-usual: debt without end. At least a decade of debt, with no real prospect of returning to surplus.
All of which knocks to the mat Chalmers’ bullshit claims of having turned around the nation’s debt. The political science graduate’s sleight-of-hand was to try and fool us that gross debt was the same as net debt.
While the Treasurer is highlighting gross debt levels, which Labor politicised during the pandemic when it attacked the Morrison government for amassing a trillion dollars of debt, most economists focus on net debt which takes into account all government’s assets. Economists consider measuring debt to GDP as an important indicator because it reflects a government’s ability to repay its debts relative to the revenue it can bring in.
Zippy can’t rely on the sugar hit of record-high mass migration going forward. Even Labor are dimly realising that importing millions of foreigners is toxic to the voting public.
Rich Insight founder Chris Richardson said […] declining commodity prices, weaker migration and lower inflation would make debt management harder. Still, Australia’s big debt position also has a “mortgage offset” with assets such as the $300bn Future Fund.
You can bet Zippy and Albo can’t wait to plunder that money put aside by the responsible Howard/Costello government. And once they’ve cleaned out someone else’s piggy bank?
From January to March, the Albanese government has rolled out health, cost-of-living, housing, infrastructure, manufacturing, schools, energy and natural disaster funding announcements worth tens of billions of dollars. The spending spree aimed at wooing target voters include the $8.5bn Medicare package, $1.8bn for energy rebates, $689m for cheaper medicines, $7.2bn for the Bruce Highway upgrade and more than $5.3bn for infrastructure projects in the key election states of NSW and Victoria.
As Victorians are finding out in the wake of ‘Dictator Dan’ Andrews, grandiose socialist promises are all well and good – paying for them is another thing entirely.
And when a Labor government makes a big-spending promise, it’s best to check the fine print.
Public schools have been short-changed as much as $16bn through secretive funding deals forged on the eve of the federal election.
In a smoke-and-mirrors announcement, Anthony Albanese on Monday said the federal government would boost funding to public schools by $16.5bn to put them “on a path to full and fair funding’’ over the next decade.
The issue, though, is that what Labor claims is the percentage increase, and the actual increase in dollar terms, are not the same.
Centre for Independent Studies education research fellow Trisha Jha said based on the higher percentage of funding, the commonwealth would be expected to hand over at least $30bn over the next decade.
Not that that’s any matter to the teacher’s unions. They’re rushing straight to the head of the queue with their hands held out, as usual.
The Queensland Teachers Union praised the funding deal on Monday, immediately announcing it would seek a pay rise for teachers.
For what? Have they checked school results for the past few decades?
In what other profession – aside from politics, of course – could anyone demand a pay raise for so miserably failing to do their jobs?
