The Budget recognises the people it wants to help, and the rest can go to Hell
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.
13 “Throw a little money at it. Apprentice-style,” said Annabel Crabb. Now that was a great idea except “who was it that wrecked TAFE in the first place”
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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18 comments
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New England Cocky
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John Lord
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Carina McNaughton
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OldWomBat
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Keitha Granville
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Kronomex
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DrakeN
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Ross
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DrakeN
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New England Cocky
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Baby Jewels
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leefe
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Florence Howarth
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Kronomex
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wam
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Uta Hannemann
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Uta Hannemann
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Mrs Wobbly
Return to home pageOh dear, JL you have not asked “Who are the beneficiaries of all this economic madness?” Could it just happen to be the international banking cartel and NGO agencies that previously imposed ridiculous conditions on Greece and Italy that generated wide spread and unnecessary hardship and poverty in the name of ”economic reform”?
The name of the game appears to have become “Look after me” forgetting that without community the system fails.
We have the alcoholics in charge of the pub and the mindless in charge of country. Time for another election to install Albo as PM after his sterling performance in last night’s Budget Reply.
I’m with you NEC.
Albo’s budget reply was fantastic. I especially enjoyed the summary of the libs. Dirty deeds done dirt cheap. Says it all.
i would have thought that the mining industry is a mature industry and so it requires no subsidies or “grants “to help it along.
Jobs for the boys, (Cormann gets a cushy new number) money and subsidies for their business mates. Always the same old same.
Sigh
$500 for pensioners equals a weekly increase of just under a dollar. Wow, let’s not spend it all at once. We don’t matter, at home or in care. So many have died the pension bill is a heck of a lot cheaper already.
I wouldn’t worry too much, the LNP addiction and withdrawal symptoms for a “back in black” surplus will keep bubbling and bubbling until it can’t be resisted somewhere in the next 12 months or so I expect.
Keitha, don’t forget that the $500 will be in two payments in December and March which should, maybe, cover a couple of power bills and bugger all else.
Kronomex, my next 6 months of power bills have been paid for by the WA State government.
WA Labor have turned around a State economy from a burgeoning disaster to an effective and fully operative one since they took over from the previous Liberal government, and created a decent surplus to use as a buffer in the event of more unseen economic distrubances.
Same as always, Labor fixing up the massive failures of the “Better economic managers”.
The government could easily rid itself on its “debt burden”.
Simply stop the issuance of government securities to the private sector and make provisions for the RBA to provide the AUD to payout the bonds when they fall due. Easy peasy lemon squeasy.
They won’t because it’s monetary policy to finance deficits this way. But it’s only a policy, if you think about it for a couple of seconds a government who create and issues its own currency doesn’t need to have deficits in the first place. What’s limiting the government is ideology not economics.
Ross, I believe it is more personal greed, rather than ideology which drives the lost souls on the government benches.
@OldWomBat: An excellent observation. Similarly, private schools have had over 50 years of government funding to raise their academic standards to the same as state schools, and yet the present philosophy is to pay Principal’s $500,000+ salary packages and build swimming pools; both hardly revolutionary innovations to improve academic performance of students.
@Kronomex: C’mon K, When has a farmer been able to properly manage the finances of their agricultural enterprise without the assistance of government rural socialism handouts? Take away all the rural corporate subsidies because agriculture is ”a mature industry” and let the foreign owned international miners get on with the job of destroying the Great Artesian Basin water that supports agriculture in W NSW, W Qld, N Vic, and SA ….. after the farmers have walked off their unviable properties. Western land clearances without compensation cost to the COALiiton misgovernment.
The 23,000 home care packages are over four years, whilst there are currently 100,000 waiting which will grow over the next four years. Yes, it is pathetic.
If wind and solar are “mature technologies” that do not require misgovernment support, what does that make coal, gas and other fossil fuels – geriatric?
Come to think of it, that explains their support for those sectors; that’s their version of “aged care” – it’s for industries, not people.
#Worse thing about the tax cuts, they are permanent, setting tings up for structural imbalances in the future.
DrakeN October 9, 2020 at 12:14 pm
“Kronomex, my next 6 months of power bills have been paid for by the WA State government.”
(Blows raspberry and waves fist at rotten old Labor for caring.)
🙂
Leefe,
“…what does that make coal, gas and other fossil fuels – geriatric?” Yes, they are and the LNP is all about caring for them and the corporations that gently remove them from the ground that they blow up, bulldoze, rip up, dig up and destroy and give Saint Scotty and Marketingettes lots of brown thank you envelopes for making it easier.
A great warming read this morning, lord.
I shall have another good day like the one after albo’s reply. I think not having labor to take care of our recovery is the greatest political disaster in my memory.
The mentality of these men and women is in number 13.
Throw cash when cornered and forget about it. Albo follows your rules and let’s us forget about it too.
Sadness comes so easily with these thoughtless thinkers.
I heard this morning they are abolishing bulk billing.
Again cutting the poor who will not go to the doctor and waste almost all of the indue cash allowance. The frankers will lose their health card advantage but they are rich enough not to miss the cost.
ps
a recurring thought about frugal?
Since milne this mob have been so profligate and to the shame of the media and labor most of the cash splashes are secretly done to avoid scrutiny and accountability.
“aged care” – it’s for industries, not people.
leefe. I think you got this one right!
“The Budget recognises the people it wants to help, and the rest can go to Hell”
This heading sound about right to me. Well, I guess the government has to decide who is important and who isn’t. From their point of view, some people just do not deserve to be helped adequately. They probably think, that first of all the people who own all the assets have to be supported, and for sure you cannot deprive these people of any extra income just to hand it out to these undeserving people.
Same old script budget or not from LNPS helping the well to do and demonising poor and low income earners. But some how the LNPS lairs keep getting voted back in, if people thought laterally in this country we may have decent politicians to run our country for all our citizen despite income levels and not MPs helping their own agendas of wealth generation. Sadly this isn’t happening, with saturation of msm agendas from the master , this hasn’t helped us, as msm just bows down to the wishes of their master and are in a higher income brackets so not affected, indeed shameful journalism helping the wealthy profit and then lies for the rest of the population. When will msm and LNP be held accountable for lies and criminal behaviours on behalf of the Australians population ? hopefully in my lifetime.