c2105026
Active Member
- Joined
- Aug 9, 2009
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I don't think the opposition is adverse to budget saving measures, just the ones that were put forth. But indeed even if every single measure from the 2014 budget were passed the deficit would reduce but would still be there. Whilst the opposition could have passed Coalitions budget savings measures in senate, conversely the Coalition could have introduced reforms that were more ideologically neutral, and more likely to be passed.
Basically the budget seems to be based around a pre GFC growth level. Quite often after a downturn, things go gangbusters and the budget sorts itself out. We haven't seen this since the GFC. As an example, the ASX 200 has only grown 10% since early 2010. Maybe the economy as we see it now is the new normal.
You could cut back on expenditure to reflect perpetually sluggish economy but do it too much is electoral suicide. It's easy to give the voter what they want but if/when it has to be called in, there is a voter revolt. If we as a populace want the budget to be fixed, we need to accept such measures that will permit that, be they focused on rich on poor. Just as those on the left must accept eg Medicare copayment, those on the right must accept eg restrictions on negative gearing. One ideological angle alone won't sustainably fix the budget.
Basically the budget seems to be based around a pre GFC growth level. Quite often after a downturn, things go gangbusters and the budget sorts itself out. We haven't seen this since the GFC. As an example, the ASX 200 has only grown 10% since early 2010. Maybe the economy as we see it now is the new normal.
You could cut back on expenditure to reflect perpetually sluggish economy but do it too much is electoral suicide. It's easy to give the voter what they want but if/when it has to be called in, there is a voter revolt. If we as a populace want the budget to be fixed, we need to accept such measures that will permit that, be they focused on rich on poor. Just as those on the left must accept eg Medicare copayment, those on the right must accept eg restrictions on negative gearing. One ideological angle alone won't sustainably fix the budget.