Re: Australian Politics Chatter Thread
chicky_pie said:
He's taking us back to when Australia was in debt and we had to rely on the Liberals to get out of the hole that Labor created.
History repeats itself baby.
My friend we're allready in debt, don't be so naive as to think this new government was granted a completely ship shape economy, rather they decided to stage a coup only to find the island was a fools paradise. Good on the government for getting a government surplus, look how long it will take to wipe that out when the private sector fails to make debt repayments.
Private sector debt has never been higher and it is spiralling out of control, when the people fail to make their repayments whaddaya think will happen? It goes something like this, lenders have to make massive cutbacks because the money they had been expecting and indeed spending before they recieved isn't coming in, thousands of redundancies, thousands of people no longer paying taxes furthermore they're collecting government welfare payments.
What happens then? There are a few possibilities. The traditional approach has been for the government to sell off assetts to keep the budget respectable and just stay out of the private sector until it hits the depths of the early nineties and begins to grow again when the cost of living has plummetted so low that there is actually enough capital to go round. They could raise income taxes on the highest bracket to raise the lost government revenue, which might work but will probably mean lower investment so growth will be curtailed a bit, but better to limp forward then run backwards I guess. Or the government might cut spending on services, most likely infrastructure as that doesn't show up until about five years after the failed payments. And this is what liberal twits like yourself get for ignoring Lord Keynes.
