Part 2
What about our huge surplus?

Many commentators think the higher the surpluses the better. This is juvenile, a bit like schoolboys comparing the size of their manhood. In the enlightened would we all know it is not size that counts but how you use it.

So too with budget surpluses, what it is really demonstrating is a juvenile approach to national development. Infrastructure investment is needed to advance the nation and allow economic growth. Hoarding public finances to pay debt early does not generate any future income. In other words it does not lead to a bigger or tastier pie.

The Costello Years will be remembered as the squandered years. Surplus accumulation through high taxation to pay off debt without creating additional national value.

Slasher,I'll think you'll find that NSW which makes up nearly 40% of Australia's economy has much to do with our poor growth rates.Much of this is due to the excesses of the Carr/Iemma Govts;but that aside,you are right about interest rates.We tend to keep interest rates high to draw in foreign capital since we buy more than we sell.The negative side to this is low growth.Our greatest burden is that we don't export enough to support the excesses of our lifestyles.Foreign Debt is now half our annual GDP.It will come home to bite us one day.

China on the other hand has 10% growth and keeps it's Yen artifically low to sell more and thus get more foreign capital.You cannot export manufactured goods to China without copping a 110% tarrif.Even second hand items have a duty equal to that of new products.Raw materials have no Govt tarrifs.A foreigner cannot buy land in China or Japan yet we sell of anything we can lay our hands on to live for the moment and have no protection for our primary industries.

Now we wonder why few can afford housing in Sydney with foreigners able to buy anything they want.If China in the future gets enough foreign capital they'll just buy our entire country and not a single bullet will have been fired.

I say it's time to get people off social security,reduce taxes and get all of this country working again.The middle and working classes are sick of being slaves to to the excesses of our socialists Govts.

Arjay,
Yep sell, sell, sell....greed, greed, greed...

Kay,
If it's one thing you can't acuse our learned collegue of it's not doing anything about Mental Health, only 2 years ago, he and his musketeers cut State Health funding by almost $1 billion, what more could you possibly want from a government with a projected budget surplus of $17 billion?

[Deleted for flaming and offensive language. Poster suspended for 14 days. Second offence in one month.]

Slasher,
"Australia is a low interest rate nation isn't?"

It's better than the 20 or so % it used to be with Keating, he sent us broke.

Peter,
You and/or John Howard will be around for a while yet.

Keating was the Architect who initiated all the good reforms so that at Present Peter and J.Howard take all the Credit for the good Economy of this Country but there is no Gold on the Streets of Australia the Rich are Getting Richer and the Poors pay Tax because there is no way out but the Wealthy can get around and pay little Tax 10Years of Peter and John over 3million people live in poverty one million children live on the Streets of Australian Cities The Tax System is in bad Shape we pay the GST plus all the other Taxes Immigration in need of Urgent Reforms Education under John and Peter in very bad Shape We are involved in a War in Iraq and Afghanistan is Clear no one or any Countries will ever Win ? But J.Howard keep Beating is Chest Telling the People of Australia that is Doing the Right thing and Peter what Happened to the 17 Billion Dollars you tell us you have on the Side ? how much does the War Cost Australia ?
i suppose that is the Legacy we get from John and Peter 10Years in Power ? far to Long that is no Democracy that is more like Dictatorship .....thankyou for Listening......