To tell you the truth, I’m not at all surprised that the Labor Government who had inherited an economy that was some $30 billion in the black to one that is projected in the next budget to be around $70 billion in the red. I’m not even surprised that they are blaming on the global recession. What I am surprised about is that Rudd’s popularity is still so high. It seems that the majority of Australians can’t see that Labor’s mismanagement is sending Australia into a debt so high that it is going to take a lot more than Wayne Swan’s projected 6 years to get out of.
According to Rudd;
It is responsible for us to have embraced such a (deficit) strategy to deal with the challenges presented to us and other economies with the global recession and to do so within that responsible framework.
The way I see it though is that their strategy so far has been seriously flawed, especially the part where they virtually threw some $20 billion down a virtual black hole. I’m talking about all the money they gave away as part of the stimulus package, a strategy than many have said has failed.
I’m sort of wandering if people realize that all this money they are squandering is borrowed money, money we have to pay back, with interest. I don’t know what sort of interest rates a government gets, but if we look at say 5%, that means that the Government has to pay back $3.5 billion in Interest. That is $3.5 billion less that the government can spend on health or education.
So, where will they get it? From us of course, the Australian tax payers. Already they are preparing to scale back the 30 per cent private health insurance rebate thereby breaking an election promise. This in itself can have dire consequences like putting more pressure on an already struggling public heath system.
I am left wondering how far into the shit we have to go before people wake up to the fact that Rudd and Swan are screwing the economy.