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The Forum > Article Comments > Small government not the answer – a response to Wayne Swan > Comments

Small government not the answer – a response to Wayne Swan : Comments

By Tristan Ewins, published 2/5/2011

Australians ought to be paying more tax so we can enjoy a better quality of life.

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Tristan

Are you going to be as congratulatory of Swan's performance when the $50 Billion deficit is announced officially in the next budget?
That's more than the $43 billion to be spend on building the NBN(if they can find someone to built it!)

Did you miss that snippet leaked last week?

Too busy watching the royal wedding ... were you?

How are you going to address that?

You can leave aside for later how exactly you are going to explain where all the money has gone ... during a resources boom?

We know where it went after the Liberals had put money aside ... the stuidity of pink bats and an idiotic school buildings waste. Neither could be said to have got Australia through the GFC. Stuffing up the savings stratagies of people who did not invest in the 'guaranteed' major banks was hardly the stuff of magnificient policy.
Posted by keith, Tuesday, 3 May 2011 5:44:01 PM
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Keith, you won't find me defending the management of the home insulation debacle. Though on memory the amount was in the vicinity of $2 billion. It was very bad - but it was a once-off.

re: BER - Abbott beat that up a lot; I guess he thought if he said the same thing again and again people would revert to the old prejudices. In reality it provided stimulus when desperately needed, and with BER specifically waste was minimal. The total program was over $16 billion; within which about $2 billion could have been saved. Perhaps if the public sector had its own construction capacity profit gouging in such circumstances could be avoided? The infrastructure provided is socially useful as well - and will be for decades.

The problem is that many people will never realise now what would have happened without stimulus. The Conservatives revert to type with talk of 'waste', but what of the hundreds of thousands who otherwise would have lost their jobs?

You say there will be a $50 billion deficit. If that's true link to your source. And even if it was true - consider the context of the government's plan to return to surplus in three years. If anything the government is moving too soon - as the disasters in Japan, Queensland etc - are impacting on growth.
Posted by Tristan Ewins, Wednesday, 4 May 2011 11:12:26 AM
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Tristan Ewins:

Your proposals in this article for improvements to “Social Infrastructure” are laudable; but ignore the fragile nature of the economy at present. I think there is a need for Governments to acknowledge the causes for the GFC gone, and prepare for a future possibility of further financial collapse on a more grand scale than we witnessed.

The realities current are the witness to whole of countries in the EU collapsing into bankruptcy: And of numerous states in the USA going the same way. Our own economy is struggling along in two speed. Extract resources and the banking industry from the equation and the balance is losing the plot at a rate of around 3%pa. Unfortunately that sector contains the larger portion of tax payers from which to draw the “goodies” for funding your proposals.

One thing I do whole heartedly agree with you on, is the need to eliminate urgently middle class welfare such as you suggested with the medibank rebate among many others. Other areas of savings could easily be drawn from industrial welfare, such as subsidies to aluminium smelters for cheap power, and many more examples too numerous.

Gillard and Abbott both will not win on welfare reform. It is already reformed. Short of standing back and watching wholesale starvation and homelessness as an alternative, welfare must be left to the bureaucracy to defend, in its current state. Already enough persecution is on the official books for welfare recipients
Posted by diver dan, Thursday, 5 May 2011 1:12:17 PM
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