A thoughtful comment from Don Argus on Australia’s GDP
Don Argus is correct in what he is stating, that Australia’s position in 2013 has deteriorated back to the high debt levels of the 1990s.
The situation in Australia today economics wise is not a good situation for a variety of reasons. I have always argued that the measures taken back in 2008 were not necessary because Australia was not affected by the GFC because of the flow on effect of the good management under former Treasurer, Peter Costello.
The points that come out of what Andrew Bolt is reporting re the comments of Don Argus are ones that I think are critical as to the future economic position of Australia, especially if the electorate was foolish enough to allow the ALP to have another 3 years in power. That point is that our debt position has worsened and we have not had a recession!!
Despite what some claim, Australia was not as badly affected by the GFC, as say the USA or the UK for a simple reason – we have better controls over bank lending for mortgage. The mortgage companies that failed did so because they were following practices adopted in the USA and they were lending to people who could not possibly meet the mortgage repayment requirements. However, we did have a minor liquidity problem at the time and it did mean that some lending sources dried up, leaving some big projects either unfinished or simply delayed until the situation got better. Specifically, I am thinking of the Canberra Airport expansion that was held up due to temporary liquidity problems.
The measures adopted by Wayne Swan as Treasurer were the wrong measures to be taken. There was no need to send out $900 cheques to a portion of the population. I should add here that most of what was adopted was a colossal waste of money.
On a different note: There is a lot of information being revealed about government waste on certain projects. The waste involved more than 1 state in Australia and includes: Victoria, Queensland, South Australia and NSW. The projects are the white elephant de-salination plants. What is being revealed at this time indicates that the beneficiaries of the projects were people who had their snouts in the trough. Certain names, companies and unions have surfaced in what I have been reading. One name Robyn McLeod is quite significant because her history is not what has been claimed. The winners in regard to these projects have been the AWU and Thiess.
I am not sure that what has happened can be undone, but the point to make here is that this kind of project has meant that taxpayers will continue to be hurt for a very long time because a group of people had their snouts in the trough and were getting rich as a result of these schemes. BTW think Climate Change when considering this matter.