As mentioned in a previous post the nations debt under the current government looks set to go over the 1 trillion mark imminently. This isn't simply just a matter of labor did this or liberals are doing that but its becoming a matter of national importance. We're not lucky enough this time to have a mining sector deliver us royalties (another debate in itself) and have seemingly little direction on actually changing it. This is a bit of a dig at the liberals but the same could be applied to labor as I'm sure its done the same in its time: they seem to be going after culling programs including welfare, energy that when are all added up seemingly are quoted at saving 10-100 million at best. While these savings are required, these are often essential programs and now when you break it down cutting several of these programs will be barely a trickle in the motion of making savings. This is an issue of governance and really needs to be addressed.
Australia's white elephant
- Thread starter hamohawk1
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There doesn't appear to be a lot of political will to do anything about it.
Cutting spending actually causes more harm than good (particularly on those with the lowest level of capacity to pay the extra required for such things in health for example).
The current government seems so reticent on not increasing taxes (unless it is the GST) and the tax mix itself is fairly ineffectual (see the comments regarding the Petroleum Resources Rent Tax), so it doesn't deliver neither enough revenue or returne enough into the economy for the greater good.
Cutting spending actually causes more harm than good (particularly on those with the lowest level of capacity to pay the extra required for such things in health for example).
The current government seems so reticent on not increasing taxes (unless it is the GST) and the tax mix itself is fairly ineffectual (see the comments regarding the Petroleum Resources Rent Tax), so it doesn't deliver neither enough revenue or returne enough into the economy for the greater good.
Defence would be one.
The detention centres on Nauru and Manus island is another.
Needless consultancies would be high on the list too.
Gough
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I often wonder whether the people that flooded this board in 10-13 complaining of every minutia of the Gillard are capable of following politics without Murdoch telling them what to think, or indeed followed politics at all prior to the 2010 election. There seems to be plenty of issues in this government that they could pass their critical eye over but clearly choose not too. Page after page demanding Gillard be jailed over the AWU fantasy, yet MPs accepting Rolexs from the Chinese, or the AG misleading the Senate is of no interest.
Reynolds Number
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I know one poster who flooded this board with a tirade of ALP bashing whilst they were in power and has disappeared Harold Holt style since the Libs got elected.
I'm not going to name posters but it is very interesting.
On SM-A300Y using BigFooty.com mobile app
I'm not going to name posters but it is very interesting.
On SM-A300Y using BigFooty.com mobile app
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IIRC the repeal of the Carbo Tax while keeping certain initiatives (18k tax free threshold etc) has been majorly costly. GST is another thing that is always touted to go up but is probably political poison if not done in the first year.
VineyIsLORD
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Tax base will need to be increased because there are practically no revenue generating assets held by Australia anymore. Baby bonus wasn't worth it.
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Key issue of privatisation. Short term profit but you end up selling your country majorly short.
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- #10
Where does government expect to draw money from full stop. You have a more service based economy where the 'average wage' has been lowered in tax. Many high wage residents may not even be getting paid in australian dollars and the government is reluctant on any form of manufacturing or start up which could keep taxes within the nation.
Power Raid
We Exist To Win Premierships
I wonder how low our currency will go as we try and deal with our debt. I dare say digital currency will increase in importance over the coming decade
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My Budget Solutions
Cut Red Tape
http://ipa.org.au/news/3563/red-tape-hampers-resources-recovery-for-miners
"Australia's has a red tape problem. Recent research by the Institute of Public Affairs, based on the World Bank's ‘regulatory quality index' and a methodology developed in the US, found that red tape costs $176 billion in foregone economic output every single year. That's the equivalent of 11 per cent of GDP."
Reduce the Size of Government
- Merge Departments
- Remove Duplication at Federal/State Level
- Automate/Computerise as much as possible.
Cut Spending
- Remove perks for single term politicians
- Cut back on middle class welfare
- Cut back on Long Term Unemployment benefits
- Refocus spending on Indigenous programs into Indigenous businesses growth.
- Reduce Foreign Aid
- Spend less on prisons (i.e Only imprison violent criminals, fine the non-violent crims)
Tax (20, 25, 25 System)
- Increase the GST to 20% (50% must got back to state that paid it).
- Reduce Corporate Tax rate to 25%
- Reduce Maximum Personal Income Tax to 25% (25-75k = 10%, 75-125k = 20%, 125k+ = 25%)
- Close Loopholes so large corps pay tax for earnings made in Australia (no shifting debt).
- Legalize Marijuana/Drugs and tax them.
Cut Red Tape
http://ipa.org.au/news/3563/red-tape-hampers-resources-recovery-for-miners
"Australia's has a red tape problem. Recent research by the Institute of Public Affairs, based on the World Bank's ‘regulatory quality index' and a methodology developed in the US, found that red tape costs $176 billion in foregone economic output every single year. That's the equivalent of 11 per cent of GDP."
Reduce the Size of Government
- Merge Departments
- Remove Duplication at Federal/State Level
- Automate/Computerise as much as possible.
Cut Spending
- Remove perks for single term politicians
- Cut back on middle class welfare
- Cut back on Long Term Unemployment benefits
- Refocus spending on Indigenous programs into Indigenous businesses growth.
- Reduce Foreign Aid
- Spend less on prisons (i.e Only imprison violent criminals, fine the non-violent crims)
Tax (20, 25, 25 System)
- Increase the GST to 20% (50% must got back to state that paid it).
- Reduce Corporate Tax rate to 25%
- Reduce Maximum Personal Income Tax to 25% (25-75k = 10%, 75-125k = 20%, 125k+ = 25%)
- Close Loopholes so large corps pay tax for earnings made in Australia (no shifting debt).
- Legalize Marijuana/Drugs and tax them.
rodney hoo
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We could borrow the money from Norway, there done very well with minerals/oil boom.
We could stop propping up private health insurance companies as well.
We could stop propping up private health insurance companies as well.
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Issue is regarding government cutting of staff is that while government is seen as a political nightmare due to the slowness a lot of this is often attributed to the over-worked and under resourced departments. Cutting staff simply puts the responsibilities onto others and is not really a long term cost saving measure.
Anything "Institute of Public Affairs" needs to be looked at very, very carefully. They are basically a privatisation lobby group masquerading as a think tank.
Yes sure. She was brilliant. That's why the ALP polled at around 27% when she was leader.
Oh the humour.
Let's look at that point.
A fair percentage of welfare is the aged pension. Because superannuation didn't kick in until the 1990s, there are still at least 2 generations of Australians who have to rely on the aged pension for their income after the age of 65. I challenge anyone to live on the currwent pension rate of around $500-$600 a fortnight per person. With an average household shopping bill of $200, plus relevant bills, travel costs and whatever else, there ususally isn't much left over each fortnight.
It's even worse for the unemployed and those on disability support and carers pensions. Average fortnightly payments for those is well under $500. Say you were trying to get a job...$500 a fortnight doesn't go far, with travel costs, bills and food taken out of it. It is very hard.
The above facts make the case for cutting welfare spending even further more likely to cause harm than good.
Then we look at health care. The government this week is championing the fact that 17.5 million more bulk billing visits have occurred in the last 12 months. Another case that can be made from that is that there have been at least half that number is because of more sickness. And yet people want to cut the health care budget and force patients, to pay more for a basic fundamental need? Love to know how that can ever be justified.
Then we look at education. Now here is where some spending can be cut for the greater good. If you are an elite private school, there is no need for you to get government funding, as you are already making shitloads from your own fees. Instead, that funding can go into improving the schools at the bottom end of the socio-economic food chain, improving results in retention and ultimately end of year results. Needs based funding if you will.
The point is this. We have governments that lack courage and are too busy looking after their mates without actually going out into the electorate and actually talking to people who are adversely affected by the decisions THEY make.
Gough
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Let's take debt as an example. Not long ago, these boards, and the country in general was flooded with people, most of them presumably about as well qualified in economics as I am, parroting the debt, and deficit emergency mantra, assuring all, and sundry that Australia was the next Greece. The budget deficit has increased eightfold since September 2013. Where are these people now?
VineyIsLORD
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I believe the thread title is wrong btw. I think you meant 'Elephant in the room' rather than white elephant. I stand to be corrected though.
VineyIsLORD
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And because the LNP are so bereft of appeal to young people, and so desperate for money that doesn't come from China or Property Developers, they've been able to purchase some pretty sweet public service jobs for their woefully unqualified and inexperienced contributors.
John Lloyd: Writes a bunch of articles talking about privatising the public service - gets awarded the job of Public Service Commissioner
Tim Wilson: Writes a bunch of articles talking about disbanding the HRC - gets appointed HRC Commissioner before parachuting into a safe seat.
Then there's all the senators and MP's they have. Yet the IPA doesn't declare where its funding comes from (hint: Big Tobacco, Murdoch). They also always end up with a talking head on every ABC panel show, I guess to show 'balance' by allowing extreme right wing voices to debate the centre right. Never have I seen a dreadlocked Socialist Alternative speaker on the ABC, yet that would be the left wing equivalent of an IPA member.
They are free market neoliberals, and none of them have ever had a real job or significant qualifications for the jobs they are being handed by the LNP.
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Shaking our heads because we now realise that neither party gives a *.
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The debt issue can be viewed in an analogy not dissimilar to many plants. You are able to chop off vast sections of a plant and while most will grow back, this could take significant time. Similarly the debt has skyrocketed very quickly but its going to take large scale long term changes to get it back down.
Eight fold? I don't quite think that is correct Gough. Yes Australia has an issue, i don't think any credible person could argue against that. Not only that but who is defending the cowardice of Abbott and Turnbull and their non efforts to cut spending?
You might also ask yourself how the deficit went from 43bn to 18bn in an election year (having only decreased 4bn the previous year) then back to 48bn.
Good to see you are economic conservative now.
Yes you are correct. NBN is the white elephant.
I bought my girlfriend an elephant for her living room. When she started to thank me profusely I said 'don't mention it"
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