Australian Government paranoia about debt
The federal government is in a constant state of paranoia about our debt. It would be good to be in surplus and they are working towards that. We were in surplus just prior to the GFC. This is what saved us from recession at that time. Our debt ratio to GDP is one of the lowest ratios in the developed world. We have been in a state of growth for a long time now. Other countries envy us.
I may be wrong but I think the USA has been in debt for a very long time and they seem to manage.
In the 2017 budget the big banks took a hit as they are to come up with $6.2 billion over the next several years to help ease the debt situation. The banks have vowed to pass on this levee (pollies' euphemism for a tax) to their customers and maybe even their shareholders. A lot of mum and dad investors hold substantial numbers of bank shares in their superannuation portfolios. Australia is a bank bashing place as the profits of the big 4 banks are seen to be obscene. The current Federal government that rests on a policy of private enterprise needs to be careful in going down this path. It is effectively regulating business and this is not a platform it would like to be identified with.
They need to tackle the Goods and Services Tax (GST) as a revenue raiser. Maybe it could be put up from 10% to 12%. Maybe it could be expanded at 10% to food. Governments are afraid to tackle this one even though economists are in favour.
Young people cannot afford to own their own homes yet this government persists with a negative gearing arrangement for those who invest in properties. Australia is one of the few developed countries that has this arrangement. This is another area that this private enterprise government is afraid to tackle.
Australians are doing it tough not having had a pay rise for a long period, yet living costs keep going up.
We are not happy little vegemites at present. [Vegemite is a strange black spread that Aussies love and it was promoted by a song "Happy Little Vegemites", hence the colloquialism just used.]
May the Force be with us!
GD
I may be wrong but I think the USA has been in debt for a very long time and they seem to manage.
In the 2017 budget the big banks took a hit as they are to come up with $6.2 billion over the next several years to help ease the debt situation. The banks have vowed to pass on this levee (pollies' euphemism for a tax) to their customers and maybe even their shareholders. A lot of mum and dad investors hold substantial numbers of bank shares in their superannuation portfolios. Australia is a bank bashing place as the profits of the big 4 banks are seen to be obscene. The current Federal government that rests on a policy of private enterprise needs to be careful in going down this path. It is effectively regulating business and this is not a platform it would like to be identified with.
They need to tackle the Goods and Services Tax (GST) as a revenue raiser. Maybe it could be put up from 10% to 12%. Maybe it could be expanded at 10% to food. Governments are afraid to tackle this one even though economists are in favour.
Young people cannot afford to own their own homes yet this government persists with a negative gearing arrangement for those who invest in properties. Australia is one of the few developed countries that has this arrangement. This is another area that this private enterprise government is afraid to tackle.
Australians are doing it tough not having had a pay rise for a long period, yet living costs keep going up.
We are not happy little vegemites at present. [Vegemite is a strange black spread that Aussies love and it was promoted by a song "Happy Little Vegemites", hence the colloquialism just used.]
May the Force be with us!
GD
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