Julia
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Chris Richardson's view on the debt ceiling from "The World Today":
This is all just the usual political theatrics on both sides. Labor have nowhere to go on this. They have tacitly admitted this by asking for justification of the $500billion by Treasury. Martin Parkinson will be duly wheeled out, will say all the right words, and the whole silly argument will be history.
Economist Chris Richardson - from Deloitte Access Economics - dismisses the need for a debt ceiling at all and accuses both sides of playing political games with it.
CHRIS RICHARDSON: I don't think we need a debt ceiling, full stop. Remember this is a fairly new invention in Australia and it's a dumb one. Parliament already looks closely at every budget. You can ask Gough Whitlam and Malcolm Fraser just how closely we look at budgets.
We have Parliament passing in effect the expenditure and revenue decisions in the budget. That means they've directly or indirectly already made decisions about debt. If you have another layer of decision, that's dumb. It's asking for trouble as the US has recently proved.
We'd be much better off having no debt limit. If we've got to have one, let's have a massive increase so that it does not prove to be a problem.
LOUISE YAXLEY: Do you think then that this is just a political game?
CHRIS RICHARDSON: Both sides have played political games with debts and deficits in Australia. No side has covered itself with glory in this debate. Either before or after the election.
For reasons of good governance in Australia, we have already, year in, year out, taken careful decisions around budget spending and revenue. We should not let grandstanding opportunities arise. The US is a good example of the trouble a nation can get into around grandstanding.
Again, neither side of politics has its hands clean here. Of the available options, yes I would prefer the increase to $500 billion. But only because the sensible option, you know, take the debt ceiling out the back and shoot it.
ELEANOR HALL: That's economist Chris Richardson ending that report from Louise Yaxley in Canberra.
This is all just the usual political theatrics on both sides. Labor have nowhere to go on this. They have tacitly admitted this by asking for justification of the $500billion by Treasury. Martin Parkinson will be duly wheeled out, will say all the right words, and the whole silly argument will be history.