The Gillard Government

[Miss Hale]

Yes and just because interest are low it does not add up to a healthy economy. It means the economy is in bad shape and needs stimualting.

But its almost impossible to stimulate it at the moment. With most people in deleveraging mode cuts in interest rates are not stimulating people to spend but just helping them to reduce debt more easily which is what most people are focussed on right now.

 

[noco]

But its almost impossible to stimulate it at the moment. With most people in deleveraging mode cuts in interest rates are not stimulating people to spend but just helping them to reduce debt more easily which is what most people are focussed on right now.

Miss Hale, lowering of interest rates is supposed to stimulate the building industry which has a major flow on effect to other indutries,

 

[IFocus]

But not interest payments on the massive debts Gillard/Swan have run up in such a short time with very little to show for it. How many more billions will tax payers have to fund to just pay interest on this massive debt?

Even IF interest rates are low, what's the point when people will be hit with higher taxes to pay for Gillard/Swan's massive spendings?

Weren't the highest interest rates of around 18% when labor was in government (around 1988-89)?

OK I know you wont buy the numbers but facts are.

There was $20 bil difference between the Coalition and Labor on stimulus for the GFC no more no less.

Under Swan growth in federal government spending has been lower that ever during the Howard Costello years yep thats a fact hard to swallow but its fact.

Current debt run up is due to the fall in revenue another fact due to the big black hole left by Howard / Costello helped by Rudd the GST (narrow base) coupled by tax cuts = fall off in revenue.

Now for all the huff and puff from Abbott / Hockey they will have the same problems and if they implement any thing near their promises.........Australia's very own fiscal cliff awaits us.

 

[kwaka1]

"Current debt run up is due to the fall in revenue........"

Is it also not due to a government that "spent" billions above what they could afford (forecast)?

The well known fiasco's of wasted money on "stimulation" of the economy.

Decisions made without forethought of the consequences.

I refer to a previous post (this post may well be my third in umpteen years) about the fact that the government is running a business and this present government has and will send the business broke because of their poor management skills.

 

[bellenuit]

Current debt run up is due to the fall in revenue another fact due to the big black hole left by Howard / Costello helped by Rudd the GST (narrow base) coupled by tax cuts = fall off in revenue.

Incorrect. There has been no fall in Revenue. In fact Revenue has gone from $350B last year to a forecast $376B this year. What has happened is that Swan's forecast revenue of $376B, which was initially to deliver a $2.5B surplus, is in doubt and is now expected to come in at $4B less. Swan's $376B in revenue was always at odds with what independent economists were projecting and Swan was just being pig headed by sticking to his unrealistic forecasts.

It is bad management that has got us to where we are now and with an increased revenue this year compared to last, Labor should have delivered a surplus if they had properly controlled the expenditure side.

The fall has been in expected revenue vs an unrealistic forecast, not a fall in expected revenue this year vs last.

 

[Julia]

[

Incorrect. There has been no fall in Revenue. In fact Revenue has gone from $350B last year to a forecast $376B this year. What has happened is that Swan's forecast revenue of $376B, which was initially to deliver a $2.5B surplus, is in doubt and is now expected to come in at $4B less. Swan's $376B in revenue was always at odds with what independent economists were projecting and Swan was just being pig headed by sticking to his unrealistic forecasts.

Yes. An essential difference. IFocus has been sucked in to spin from the government.

It is bad management that has got us to where we are now and with an increased revenue this year compared to last, Labor should have delivered a surplus if they had properly controlled the expenditure side.

The fall has been in expected revenue vs an unrealistic forecast, not a fall in expected revenue this year vs last.

+1. At least now that they have abandoned the pretence, we may see an easing of fiscal and monetary policy working against each other.

I don't like Penny Wong, but I felt a bit sorry for her on "7.30" this evening, having to attempt (in vain) to answer some pretty direct questions from Chris Urhlman on the backdown on the budget surplus.
As has already been observed, Julia Gillard chose her time to be away from the fray well.

I don't know how many will be interested but there was this evening an excellent address followed by questions by Jennifer Westacott of the BCA. She is not someone I've taken too much notice of in the past, but here she demonstrates intelligence and insight.
http://www.abc.net.au/radionational...end3f-changing-the-australian-mindset/4333558

 

[Ves]

Incorrect. There has been no fall in Revenue. In fact Revenue has gone from $350B last year to a forecast $376B this year. What has happened is that Swan's forecast revenue of $376B, which was initially to deliver a $2.5B surplus, is in doubt and is now expected to come in at $4B less. Swan's $376B in revenue was always at odds with what independent economists were projecting and Swan was just being pig headed by sticking to his unrealistic forecasts.

Can you post or link me to total government revenue stats from say the last decade? I am curious to see the cyclical changes (if any).

 

[bellenuit]

Can you post or link me to total government revenue stats from say the last decade? I am curious to see the cyclical changes (if any).

Sorry, I can't. I had been looking for that too and couldn't find it. Best I could come up with were two separate Wikipedia links, one on 2011 and one on 2012 budget. Sky also mentioned on midday agenda that revenue has in fact increased this year and that the fall was only in the actual to date vs forecast to date.

 

[Miss Hale]

Miss Hale, lowering of interest rates is supposed to stimulate the building industry which has a major flow on effect to other indutries,

Well that's not happening as far as I can see. It's also meant to make people spend more by giving them a bit more in their pockets because their mortgage repayments are lower, as well as engender a sort of joie de vivre about how wonderful things are because interest are dropping so let's spend, spend , spend! Unfortunately people are just getting worried about this never ending need for stimulas

 

[Miss Hale]

I don't like Penny Wong, but I felt a bit sorry for her on "7.30" this evening, having to attempt (in vain) to answer some pretty direct questions from Chris Urhlman on the backdown on the budget surplus.

I didn't. I heard her on PM and she spouted the exact same rubbish about how the government is not being political, implying of course that the opposition were by pointing out that this was - yet another - broken promise by the government. I lost count of how many times she said "we are not being political about this" (when of course they are). She was just trotting out glib pre-prepared answers that meant nothing and don't fool anyone.

 

[IFocus]

Can you post or link me to total government revenue stats from say the last decade? I am curious to see the cyclical changes (if any).

If you Google George Megalogenis from the Australian you might find a number of his articles he has written which goes into the numbers in some detail concerning the revenue black hole some thing a Coalition government will also face.

 

[Some Dude]

Can you post or link me to total government revenue stats from say the last decade? I am curious to see the cyclical changes (if any).

Mark The Graph has some plots that may interest you regarding the National Accounts and GDP.

 

[sails]

Receipts have been steadily increasing according to this link:

http://www.budget.gov.au/2012-13/content/overview/html/overview_44.htm

Receipts were $272 billion in 2006-7 (labor took over later in 2007) and $329 billion in 2012-12. Looks like a healthy increase to me.

However, despite the increase in receipts, massively negative net financial worth is the frightening figure since labor took over. It now stands at -$251 billion for 2011-12...

 

[MrBurns]

The Sunrise show had a message on the screen during the finance report that said " govt admits it can't keep budget in the red"

 

[bunyip]

Isn't that better than directing new money at it? Of course they should have left in place the arrangement that had pretty much stopped the boats, but as long as they're still pouring in (and why wouldn't they given it's now straight into the community with what to most of them would be a lot of money each week?) wouldn't you rather they didn't e.g. strip funds from hospital or education funding to pay for them, instead reducing the overseas aid budget?

Sure I’d rather they spent some of our foreign aid money on the illegal refugee problem rather than stripping money from essential services like education and health. But money earmarked for essential services is already being cut, and that will continue. This year alone has seen 63.3 million dollars sliced from Federal funding to Queensland Health. Presumably health services in other states have had their Federal funding cut as well. And that’s just health.
Their nifty plan to spend some of our foreign aid money on the boat people problem will not stop them from cutting money from essential services. It may reduce the amount they need to cut, but they’ll still have to go on cutting money from somewhere.

This increasingly cash-strapped government is desperately looking for money to apply band air solutions to problems that were entirely of their own making.
I’d really like to see us putting our money into looking after our own people, rather than wasting thousands of millions of dollars on people who engage in criminal activity to come here uninvited. The clueless mob of ALP fools who caused this problem in the first place have to be voted out of power. They simply don’t deserve to govern our country.

 

[bunyip]

"Current debt run up is due to the fall in revenue........"

Is it also not due to a government that "spent" billions above what they could afford (forecast)?

Not according to Swannie! lol
The bastard had the audacity to state that the shortfall wasn’t because they had over-spent....it was because of a drop in revenue.

They spend like lunatics, then expect people to believe that over-spending didn’t contribute to their problems!

 

[explod]

Not according to Swannie! lol
The bastard had the audacity to state that the shortfall wasn’t because they had over-spent....it was because of a drop in revenue.

They spend like lunatics, then expect people to believe that over-spending didn’t contribute to their problems!

Here spending is bad, overseas it is the current rage to stimulate

And I do have to laugh, is it not wonderful that we have the freedom in this country to call each other "bastards" and "lunatics".

tick Bunyip

 

[IFocus]

Mark The Graph has some plots that may interest you regarding the National Accounts and GDP.

Thanks SD not often facts get shown here

The charts for GST and the step change down on the National Accounts total tax's are telling

Apparently according to all here we didn't have a GFC, the revenue flow dramatically shows other wise

 

[MrBurns]

The Sunrise show had a message on the screen during the finance report that said " govt admits it can't keep budget in the red"

(idiots)

 

[sails]

Thanks SD not often facts get shown here

The charts for GST and the step change down on the National Accounts total tax's are telling

Apparently according to all here we didn't have a GFC, the revenue flow dramatically shows other wise

Haha - Swanny's "facts" didn't work out too well now, did they?

How you can keep up with this crazy propaganda is beyond me. It has been shown that the majority here have been right and labor have proved to be telling porkies...yet again!