Bard
Norm Smith Medallist
As the economy worsens, more people are going to require welfare to exist. More people on welfare requires more money from dwindling sources of income. Medicare and old aged pensions and subsidies are prime targets for cuts. All the people making money from negative gearing their extra properties might also find themselves targeted for savings.
Getting more in tax from big business, charging higher fees for university, increasing GST to 15%, increasing penalties for speeding, forcing people to reverse mortgage their home to pay for their pension, making the unemployed work for the dole and taxing travelers 33% for picking our fruit on their miserable $18000 a year income are among the many means government has to raise money to pay for expenses.
Someone somewhere ultimately has to pay for the payments to another. The Labour party traditionally are kinder to the disadvantaged and the Libs more favourable to the middle class and the rich. In practice, both parties realise that it's the middle class that is going to make or break elections, so it is no surprise that this group are the focus of election policies and strategies.
Australia is almost the most expensive country in the world. Dropping wages or welfare payments is not an option given our cost of living. If our dollar falls as the government wants it to do, we will sell more overseas, but imports will cost even more and overseas' travel will become a luxury. On the other hand, we'll be flooded with tourists from the likes of China taking advantage of our comparatively cheap prices.
I am not looking forward to the economic future.
It all has its positives and negatives which is why I'm not too worried about the future, although being a recent graduate during this current economic climate has certainly not been favourable, but what can you do. It's about time we got some more international money flowing into our economy anyhow, maybe a few years of that will do us some good.
