Someone has to pay the bill

I tuned to talkback on my way home from Dunedin on Monday night and heard a man explaining to Kerre McIvor that everything went wrong in New Zealand when Roger Douglas was Finance Minister.

He was wrongly criticising the cure rather than the cause.

Roger Douglas’s recipe wasn’t perfect but radical change was necessary because of the parlous state our economy was in owing to too many years of living beyond our means.

No doubt Australian Treasurer Joe Hockey will be similarly criticised for the tough medicine he delivered in his first Budget last night.

Critics will forget he was handed a sick economy and it was the high spending and high taxing prescription of the Labor governments before him which did the damage.

Now Hockey’s had to present the bill which all Australia has to pay just as we’ve been paying the bill for the over taxing and over spending that Labour-led governments indulged in through the noughties here.
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5 Responses to Someone has to pay the bill

  1. Dave Kennedy says:

    Australia’s economy was humming when coal prices were strong, now that mining is not providing the same returns a major income stream ceased to exist. We have been let off the hook with the $400 million collapse of Soild Energy and a $30 million mothballed briquetting plant. If SE had managed to dig up the fertile Mataura Valley for lignite it would have destroyed valuable farm land for nothing. We have recently discovered the importance of leaving lignite in the ground as it has been shown to neutralize nitrate.

    I always thought Labour often had a surplus and that Government debt has actually increased by over $50 billion under this National led Government. I also thought that we are having to deal with a collective debt of around $12 billion to fix the leaky building caused by National’s deregulation of the industry in 1991.

    While I am not a National supporter I have been grateful that they haven’t resorted to the extremes that have occurred in Australia. An economy is also dependent on strong social capital, under investment in health and education actually cripples the economy through not having a healthy, well educated workforce.

    I guess it must be all about perception 😉

  2. Ray says:

    “While I am not a National supporter I have been grateful that they haven’t resorted to the extremes that have occurred in Australia.”
    What a stunningly stupid comment.
    The only extremes that have occurred in Australia were the ones promoted by the late and not lamented Labour/green Government.
    A perfect example would be the Australian Government’s $10 billion Clean Energy Finance Corporation, which sounds ominously like the “green Investment Bank” mooted by our own loons, which tipped millions into lunacy like this.
    http://blogs.news.com.au/heraldsun/andrewbolt/index.php/heraldsun/comments/10_billion_more_where_that_came_from/

  3. TraceyS says:

    Great comment Ray. Australia clearly lived for the good times under the last government. That’s always going to be unsustainable.

    Dave, to say that you are not a National supporter is rather obvious going by your previous comments.

    A lot of people I know who either do (or most likely) vote Green are actually very, very fiscally conservative individuals. They are also some of the most freedom loving people I have ever met.

    I don’t think the Green party strongly represents these values anymore.

    From your comment above I see that you can understand why National is so popular.

  4. Paranormal says:

    DK it’s not the drop in mining revenue that stopped the economy over there – it was the impact Labor/Green policies. And you want to do that here.

  5. Dave Kennedy says:

    Tracey, the policy announcements that the Greens have made recently are actually more fiscally conservative compared to National. Our education School hubs policy will actually cost less than 1/3 of National’s, has been widely supported by the education profession and will deliver greater academic gains.

    Paranormal, I would love to see where you get your evidence from, here is one of my sources:
    “According to the latest IMF World Outlook, a slowdown in Chinese growth from an average of 10 percent during the previous decade to an average of 7.5 percent over the coming decade would cut Australia’s gross domestic product by more than 3 percent per year by 2025, primarily as a result of slower Chinese demand for coal, iron ore, and copper”

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