Originally Posted by Kr00
I think you need to take your blinkers off when you read the balance of trade figures buddy. Australia is in debt to the tune of $165 billion dollars. Where do you think they borrow the money from? The money fairy? Considering we had a surplus of $43 billion back in 2007 should ring alarm bells anywhere. The carbon tax has nothing to with the environment, it's a guilt trip designed to gouge $11 billion out of the public to prop up its deficit. Effective tax collection, god that makes me laugh. You can't live in Australia without a tax affecting every part of your life. "That looks like fun......... Let me tax that for you". The chicken are coming home to roost, and we will be in the tish, just like the rest of the western world. Enjoy your distorted reality while it lasts.
You say $165bn like it's a bad thing, but it represents about 10% of Australia's GDP, or about half of the Australian Government's tax receipts. However, http://www.tradingeconomics.com/australia/government-debt-to-gdp paints a slightly different picture.
Nevertheless it's within historical bounds, and it doesn't mean a lot. Australia is right up there with Bulgaria in terms of national debt, so there's no need to freak out. Well, I'd freak out about the relentless pursuit of a budget surplus, which in the end will be a paper one only, if at all. But national debt is hardly the boogeyman people make it out to be,
And the 2007 surplus? So what? Economies are cyclical. Govt spending goes up when the shit hits the fan - it's counter cyclical.