So far no one on this group seems to understand Modern Money Theory.

Businesses cannot be profitable without customers and the lower paid always spend most of their income because they need to do so to live at a reasonable standard. That spending produces demand and as a consequence helps to provide employment.

Australia has nowhere near full employment (certainly there is massive underemployment)and while there are unemployed people and under-utilized facilities and supplies in the economy the sovereign government (the government which is responsible for the currency) can buy what is available without collecting revenue. The government pays by keystrokes crediting the suppliers bank account.

The government can afford to run a deficit particularly if, when it does so, it increases the infrastructure and asset facilities owned by the government on behalf of the citizens. That deficit can be continuously about equal to the growth rate of the economy.

A sovereign government is not constrained in the way an individual or household is.

Conservatives either don't understand this or are willfully ignorant on the matter. Read Professors Bill Michell or Randall Wray on the subject or read the blogs on New Economic Perspectives.

Arjay wrote 'Didn't the Gillard Govt dedicate 10% of the Carbon taxes to the United Nations?'

But at least that will save the planet, won't it? I've sent a cheque to Europe to help bring down temperatures even more. Maybe that's why we had a cool wet winter.

A few people here need to check their keyboards, it is putting in
extra zeros. $36.5 Trillion, & $7.05 trillion !
Thats a hell of a lot of hot cross buns !

Belly, it was a radio report. You probably should try Parliament House Library.
If it has been tabled it should be available on line by now.

Banjo, here is a small example.

I have owned five retail butcher shops, from 89 to 2011.

From 94 to 99 I owned a bulk butcher, which meant higher turnovers at lower margins.

In say 96, my shop turned over $30,000 per week, grossed 28%, wages were approx 9%, rent was approx 1%, which included work cove and super, another 1% for misc expenses, power, phone etc, the rest approx $5K was profit.

These days bulk shops struggle, unless they are huge, as the disposable dollars are not there.

So your average shop today turns over around $20,000 per week, with a gross margin of 50%. $10,000.

Wages (if paid on the books), about 22%, rents, approx 11%, power alone approx 5%, work cover alone 8% (of wages), misc expenses 5%, so what's left is less than 10% in most cases.

Now considering a butcher shop today costs about $250,000 to set up, the gamble is quite often not worth it.

Plus, the likes of Coles and Woolies seem to be unrestricted as to how many stores they can open and, in many cases, it's just one land lord, steeling tenants from another.

In fact, it's simply a matter of time before most centers become ghost towns, as the big two, combines with Big W and K Mart are simply taking what's left of shoppers that don't buy online.

Once they ( the big two) get lotto, which they are after, new agents will die and they are a pinnacle part of any centre.

Sorry to bore you, but it's one subject I am passionate about.

Foyle what you pointed out was correct, governments always did and
still do issue pixel money.
However the rules have changed while the financial people have been
gazing at their navels wondering what to do.

The usual rule of thumb is either print more money or have a crackdown
and austerity drive.
Much to their surprise these traditional methods no longer work.
The US has tried one and Europe has tried the other.

We all await their return from slumber.

rehctub;
Interesting post. However as no doubt you are aware many trends occur
in the US before they hit here.
Following something I read I looked at a website for redundant shopping
centres. Yes, websites for everything.

It appears that the large malls are going broke in their hundreds.
I used google streets to check on one in Houston Texas and there it
was with an empty car park surrounding it.
I don't remember what was the cause, although what you are saying
about rents etc maybe the cause.
There are always shops turning over in our local centre.