Scott Morrison’s MYEFO released today and his speech outlining his government’s “achievements” leaves one breathless for its ignorance, its deception and his own arrogance.
Morrison’s ability to waffle and sound convincing knows no bounds, yet he speaks such rubbish in macroeconomic terms, that he drags the rest of us down with him.
A terrible deception has been perpetrated on the Australian people. We have been led to believe that we borrow our own currency from foreign nations, that the money gathered from borrowing and collected from taxing, funds spending.
It’s simply not true. And why is it important for us to know this? Because, empowered with this knowledge we can change the way our country is run. We can call out our politicians for their deception, their ignorance and force them to address the issues that are most important to us.
The issues that are most important to us are our health, our education and our right to work, as individuals, as members of families; young families have a right to expect to find affordable housing, as communities and as a nation. Morrison’s MYEFO promises none of these. It has downgraded wage growth and clearly wants to keep lowering it.
It fails to address the cost of living. It demonstrates how trickle-down economic thinking attacks all of us. It is clear the projected lower deficit comes at the expense of University students, migrants and family day-care.
These are precisely the areas we should be ensuring have a solid foundation, one that maximises our productive capacity and encourages greater participation in nation building.
Yet Morrison champions their relegation to the ranks of less important simply to make the numbers look better without demonstrating some offsetting benefits.
Spending cuts, spending cuts and more spending cuts. That’s all our government understands.
The Australian people are being taught that there are financial limits to our development. Wrong! We are being taught that surplus budgets are a worthwhile goal in themselves without explain why. Wrong again! We are being taught that our tax dollars determine our future prosperity. Also wrong!
One must ask, therefore, that if, as Morrison claims, jobs created in 2017 are running at twice the rate of population growth, why is it that over 700,000 people are still looking for work, the same number as four years ago?
If over 360,000 jobs have been created this year, why has the number of jobless not dropped by half or a quarter? At least!
The most difficult pill for people to swallow is the concept that our Federal Government is self-funding and creates the very money it “spends”. It isn’t spending your tax dollars at all.
In other words, at the Federal level, it is neither your tax dollars nor the dollars collected from sales of Treasury bonds that are spent. Every single dollar the Federal Government spends is new money.
Opponents argue that taxes fund spending indirectly because governments balance spending against tax revenue and borrowings. It’s called double-entry bookkeeping. Fine for companies and State governments, but not monetary sovereigns.
Many only see the government, the actual dollar creator, as having debt; that it has liabilities, not that we the people have assets; assets that we need more and more of, as time goes on, to achieve any semblance of personal freedom and relative security from harm.
This subject is so poorly understood by many well-meaning people on all sides of the aisle, that until we understand it and destroy the myths and legends we have substituted for it, our nation’s full potential can never be realised.
Every federal dollar is keystroked into existence. Every single dollar spent by government is a private sector asset. So, where do our hard-earned tax dollars and borrowed dollars go if, in fact, they do not pay for spending on roads, schools, politicians life pensions and spin doctors? They are destroyed by the Reserve Bank when they mark down Treasury’s accounts. They are never used again.
This MYEFO and its underlying implications continue the deception, the false impression, that Morrison knows anything about macroeconomics.
It is population growth that is helping to shield him from realising his own ignorance and the rest of the country from knowing where money comes from.