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A billion here, a billion there and soon you’re talking big money

November 21, 2016

If you want some idea how truly bad our governments have been, and in particular that economic illiterate of a Prime Minister of ours, let me begin with this: Government loaning NBN $20 billion to finish rollout.

NBN Co has abandoned plans to borrow money from debt markets to complete the roll-out and will instead borrow $19.5 billion from the federal government “on commercial terms”. This takes total government contributions to the project to nearly $50 billion.

They no doubt abandoned such plans because no one would give them the money since it is a project that is destined never to make a cent. Meantime, I want you to keep both the present $20 billion and the $50 billion in mind as we move to the next part of the story.

Here we come to the bit Judy has highlighted:

Treasurer Scott Morrison has left open the door to considering a Grattan Institute proposal to curb or scrap three aged-based tax breaks that cost the budget $1 billion a year.

Wow, save a billion by screwing Australians whose aim is to stay in the paid workforce, that is, to remain productive by earning an income. These are the very people the government should be doing everything they can to keep in the value-adding part of the economy, rather than just spend and drain productivity away. And then to go with these, there is this:

Much lower than expected wage growth has knocked a hole in the government’s budget projections, blowing out deficits right through until 2019-20.

The worse position, confirmed by Treasurer Scott Morrison, comes despite a doubling in the price of coal and a 50 per cent jump in the price of iron ore. . . .

Deloitte is expecting an underlying cash deficit of $40.5 billion in 2016-17, around $3.4 billion worse than budgeted.

We have possibly the most incompetent economic managers this side of Greece, with no vision, no will and no concept of what they are doing wrong. The NBN remains my favourite because it is so stark. But do you think Malcolm has any idea of what’s wrong with what he has done? Instead they sit around shredding their hankies worrying about the trade effects of Donald Trump. Even if he deliberately set out to undermine the Australian economy, he could not do more damage than these clowns have already done all by themselves all on their own.

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