As early as January 1999 John R Saul was pointing out the dangers of having our economy becoming dependent on mining exports and of treating financial manipulations as worthwhile activities.

I think that the author misses some of the points made by proponents of Modern Money Theory.

The government need not pay interest on the reserves of financial institutions. Instead of issuing interest paying bonds for those reserves (corporate welfare)it can always borrow the money for any budget deficit from the Reserve Bank which the Federal Government owns on our behalf). Also a sovereign (money issuing) government can never have problems paying debts incurred in the currency it issues. It can however have trouble paying for goods and services where the price is designated in a foreign currency.

Foyle makes a number of interesting and valid points.
However, there is a structural deficit, inherited from the Howard Govt, which created most of the welfare for the rich,(around 26 billion PA) that is still causing problems for the overall economy today.
The rivers of gold, that flowed from the mining boom mark one, should of been invested in a income earning sovereign fund, rather than handed out as welfare for the rich or as vote buying pork barrelling?
Clawing back this money, will not however solve many problems, when at the heart of our nation's fiscal problems, is quite massive, if legal, tax avoidance. [At least one hundred billion per.]
Eliminating this avoidance is a must; and as simple as rewriting the tax code, so that the only tax imposed, is a single stand alone unavoidable expenditure tax.
[The ATO, which advises the Govt on all matters tax, will not give this advice, as it would sign their own death warrant!]
This single unavoidable tax, would have the benefit of ending the need for compliance, or its cost to the averaged bottom line. A cost, which is currently higher, than the actual tax impost, we would need to impose on all expenditure, via the banking/financial service sector.
[A win/win outcome.]
Taxing expenditure rather than entities, will also deal effectively with the destiny of demography.
Or a shrinking pool of taxpayers supporting more and more non productive Elderly etc.
Growing the economy will also grow the tax base!
Marginal variations in the tax rate alone, would then, much more effectively and immediately, deal with either inflation or stagnation; meaning, interest rates could be lowered and lowered, until the AUD dropped to it real value, turbo charging the non mining economy in the process!
Rhrosty.

The Labor government is a complete joke, racking up record debts even when the economy is growing at pre GFC trends.

The legacy of Labor is debt and taxes.

Well, Shadow Minister, what would you have them do?
As a visiting American governor commented, we seem to be the only western nation, providing more funding to non Govt schools than the public ones? [They have to stand on their own two feet, everywhere else?]
Perhaps if this were to end, we could save many billions?
We could also save money, (around 30%), by the fed providing a direct fully funded model for autonomous public education and public health.
The latter also being means tested; meaning, the ultra expensive health Insurance rebate could be withdrawn, also saving the budget bottom line many billions.
Half the GST could be withdrawn, to fully fund both public health and public education? And in the process, forcing state bureaucracies to quite massively downsize.
The fuel rebate could also be means tested, to ensure real farmers etc, get the benefit, rather than multi-millionaire Collins street farmers.
If we simply stopped spending money we do not have, supplying welfare for the rich, in all its manifestations and guises!
I reckon we could create sizeable ongoing surpluses.
What would be your catch cry then mate?
The politics of envy or some similar and equally risible rhetorical response?
Rhrosty.

It was mostly previous Labor Govts that sold off 4 State Banks and the Commonwealth.

Now nearly all our new money for growth + inflation gets created as debt by private banks.Unless we move back to Govt Banks the debt will either continue to grow or our economies will contine to stagnate being unable to afford infrastructure.

Rhrosty you degrade your posts when you tell that obvious lie about school funding.

You wouldn't be a public school teacher by any chance would you?