“Living within your means is not mindless austerity – it’s simple prudence”

The best line from Tony Abbott’s sensational reply to the Budget.

And might I compare this with the opening of Adam Creighton’s article in The Australian last weekend:

IN 1946 George Orwell famously pointed out how politics degraded and abused the English language for the sake of political ends. The same is true in economics. The word austerity, used to describe European and even US fiscal policy, has been a clever ruse by opponents of measures that may cause any reduction in the size of government.

No objective, sane person could describe, in a relative or absolute sense, fiscal policy in Europe or the US as austere, a word stemming from the Greek meaning harsh or severe.

‘The word austerity entered into the conversation once it became clear what a disaster the debt-financed stimulus was going to be,” says Steven Kates, an economics lecturer at RMIT University, referring to the failure of repeated and colossal budget deficits to resurrect economic growth across advanced countries, almost five years after the end of the global financial crisis.

‘Those who support public spending and deficits prefer to characterise those who oppose them as wearing a hair shirt, rather than wanting to reduce public waste and have governments live within their means,’ he adds.

The other side will have to find some other scare word because this one is not working like it used to.

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