One in two voters is fully reliant on public welfare, page-59

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frasier

10,445 Posts.

17/04/16

12:11

Post #: 17523843
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Originally posted by Scarpa ↑

Actually Hingdog, from recollection you are 30 something so have never seen a recession so IMO you are clueless. My wife is not impressed I will be switching sides - she is very Liberal but the only reason she is voting Liberal is because that is what she has done most of her life (the other votes were National when she was back on the farm).

Organisations such as Moody's are telling Australia they have issues and others will follow, and the issues are on revenue account as well as spending. Ultimately as a country that relies on foreign money - 1/2 the lending money the banks use in Australia comes from foreign banks because of our poor savings ratio - it doesn't matter what I think and those financial institutions backed by Moody's and S&P will determine our fate and what needs to be done. In the past, politicians drove Australia's destiny and as I see it we will be led kicking and screaming to that destiny. That is the way it is - I can't help it if you are so far to the right you have lost reality of what is fair and unfair, and what is growth versus avoidance. Parking your money in Panama, with no intention of reinvesting, is not wealth generation. We will leave it at that.

You need to understand to read a budget - spending as % GDP has been around 25% (since Howard as well) but revenue has collapsed because we gave too many things away on revenue account because we thought a boom will last forever. When the commodity cycle burst the structural deficit in the budget became apparent for all to see, and Moody's is saying the same thing. As I said you better start calling these ratings agencies lefties as well because ultimately loss of AAA will make Oz consider its finances (kicking and screaming). Certainly on the spending account if there are people genuinely abusing the welfare system govt needs to act.

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Or, in other words, to retain our AAA rating, we must live within our means. Just like budgeting. If your income falls, you cut back on spending. Simple and obvious.

That a significant amount of revenue goes in wealth redistribution via welfare makes it rather obvious where the axe should fall.
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