Remarkable just how ideologically flexible this government is. For almost three terms their abhorrence of debt could not have been more paramount. Now they have reverted to the ideals of socialism to overcome an enormous financial crisis. I’m still waiting to see the marriage of society with economics.
Despite a commitment to Keynesian economics to fix the problem the government is still relying on a market lead recovery.
Budgets are built around assumptions. For example, China’s economic response to the monetary dilemma of the virus is a massive infrastructure build that will guarantee sales of our minerals. But the price we get over a long period can only be assumed.
1 The ABC compares Frydenberg’s Budget to Joe Hockey’s:
“Billions upon billions in tax cuts, tax breaks, free cheques and a debt figure about four times what it was back when Joe Hockey declared a ‘budget emergency’, oh how we laugh now to recall that quaint term.” reports The ABC.
Which reminds me: My wife and I, together with other welfare recipients, would like to apologise to Joe Hockey and his government for being such a burden on them for the 2014 budget.
2 There are more people leaving Australia than coming in. That is a problem for any economic recovery.
3 Chris Richardson made the point that it has never been cheaper to borrow money.
4 Economists generally agreed that rather than tax cuts, building public housing would have been better.
5 I thought the 23,000 home care packages offered was a pathetic response to the Aged Care crisis in the country. The sector had asked for 60,000 to address the 100,000 on the waiting list.
Maybe there will be a better response when the Royal Commission delivers its report next year.
6 They have given two $250-dollar payments to pensioners, but beware. I don’t think they will be seeing any 6 monthly rises for some time.
7 They talk about jobs, jobs and more jobs yet the biggest protentional creator of them was completely overlooked: Renewable energy. Ideology gone mad.
8 As for renewables like wind and solar, the government considers them “mature technologies” and successful enough to no longer need Government support. Begs the question that if there are so successful why not support them more?
9 $18 billion on the unproven science like carbon storage that has been around for 20 years. Millions of dollars have already been spent on it and it has never worked commercially. “If you took out the politics, we would have a price on carbon.”
10 The ABC cops it again with ongoing cuts to its budget in real terms. The government argues that there is an increase in its budget but the truth is that it is subject to a 0.7 per cent decrease. “Bastards”
11 Laura Tingle writing for the ABC summed up the many Budget assumptions that this government makes with this statement. “Trying to make fiscal forecasts in the pandemic is like playing ‘pin the tail on the donkey’ in six months we’ll know if the Government’s budget gamble has paid off.”
12 The universities welcomed the “Government’s budget announcement of an extra $1 billion for research, but they face an enormous revenue hit from the loss of international students.” How they will overcome the loss is anyone’s guess. It won’t be easy re-establishing this vital industry.
14 There was a billion-dollar saving from reducing the Humanitarian Program. One would have to question the morality of such a cut. Despite our own problems we are still a rich country.
15 Immigration, so vital to our growth has been given a shake-up. In an effort to compensate for the coronavirus-related immigration slump, the government has chosen to increase the number of family stream places which will escalate from 47,732 to 77,300.
16 Remember that infamous 2014 Budget (voted the worst ever) where kids got the boot from Newstart? Well this one will pay half their wage to any business prepared to hire them. That’s what I call a turnaround.
At least it recognises that if you are going to build dams, roads, waterways and gas fields it is vitality important to train people.
17 Building social housing? The Government seems to be uninterested. Taxpayers had to be rewarded for their toil. It means people who earn between $45,000 and $90,000 will end up with an extra $1,080.
18 But it’ll benefit higher income earners the most, with people earning more than $90,000 taking home up to $2,565 extra.
19 The Childcare sector didn’t rate a mention yet it influences those looking for work significantly. It seems to me that if unemployment is to be turned around then Childcare has to be free. A suggestion would be to cut back a little on the enormous subsidies paid out to the rich and privileged.
20 The government’s focus on mental health including doubling the number of Medicare-funded psychological services from 10 consultations to 20 is to be applauded. “It is a great idea and I plan to take advantage.”
In my view there are so many assumptions in this budget that it could fall in a heap at any time. Hang on to your seat belts. The next six months will tell if their assumptions were correct or not.
However, in the hands of these incompetents anything might happen.
My thought for the day
The word “Frugality” is one of the most beautiful and joyful words in the English language, yet one that we are culturally cut off from understanding and enjoying and a consumption society has made us feel that happiness lies in having things, and has failed to teach us the happiness of not having things.
Therefore, life is about doing things, not having things.
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