The media, has been scaring us about this country facing a future of debt, deficits and public penury .

“A decade of deficits spells a bleak future for Australians,”

In fact, the bond market rallied on the day of the announcement of a $12 billion black hole.
Australia is one of only eight nations in the world rated ‘AAA’ by all three major ratings agencies, this makes our bonds highly sought after.

Big funds in London and New York look at Australia and see a South Seas Switzerland – strong public finances, solid growth, low unemployment, low inflation, good yields and politically stable.

The Wall Street Journal, last year described the Australia Government’s ‘AAA’ debt one of the few safe haven investments left in the developed world.

The shortfall in the budget is about 1% of GDP.
Imagine you’re a two-income household earning about $200,000 a year. You’ve done the household budget. You forgot to include Jasmine’s school trip, which is going to cost $2,000. That’s 1% of your household GDP. Well, that’s the position Australia is in.

And what about THE DEBT? Another analogy: Your household income is $200,000. Your mortgage is $20,000. You are no worse off than Australia's economy. Are you worried?

More perspective. Australia has an unemployment rate of 5.4%. In the US, the economy leading the world out of recession, unemployment is 7.7%, in Canada 7.0%, in the European Union about 11%, in Spain 27%.

Since the GFC Australia has gone from 15th to 12th largest economy in the world. In that time, 900,000 new jobs have been created. This is a period when in much of the developed world, millions of jobs have been lost and millions of lives destroyed.

Now what would have happened to our budget position if the government had taken the austerity route –Tens of thousands of people would have been thrown out of work. More unemployed, more social spending. Fewer employed means lower consumer spending.

A thought filled thread.
And one if followed to its conclusion will remind us, media is privatly owned and used first, to put the owners views not the truth.
We are in for a ride, after Labors unavoidable loss, and the unloading by Abbott of his non core promises, we will see voters reject politicians, more than ever before.
This will see Labor needing to climb mountains, to just get back to its once base.
But it will, however it too, will not undo much of the Liberals actions, it is always so.
We how ever will not fall over or stall in our growth, we know, the thinkers of us, we prosper under both forms of government.

Thank you, Robert,

You note -

"And what about THE DEBT? Another analogy: Your household income is $200,000. Your mortgage is $20,000. You are no worse off than Australia's economy. Are you worried?"

Most people with a mortgage would agree with your premises, but usually their mortgage would be somewhat larger than $ 20,000. Try this scenario instead:

" ..... Your household income is $ 60,000, and your mortgage is $ 200,000. You work in manufacturing, or casual tutoring at a uni. Are you worried ?"

Bloody oath.

But let's keep smiling :)

Cheers,

Joe

It has been a unique experience, watching a government lurch from one stuff-up to the next, mishandling every single opportunity to present policy, and failing to manage any aspect of their portfolio with competence and precision. All against a background of relative financial stability, and an economy that is robust enough to survive a few minor sniffles with the minimum of medication. An object lesson in how not to approach government.

Part of the blame has to be allocated to the Green and Independent brigade, who have run interference on every single initiative, and not once been told to come to heel. But again, this only underlines the lack of management skills available to Ms Gillard and her team. Much can be attributed to the manner of her accession, which was an act of pure political bastardry. Failing to follow this up with a clear victory at the election fatally highlighted her inability to command the respect necessary to control the marginal ferals.

It is in this context singularly unfair to blame the country's mood on the press, who have hardly had to raise a finger - the incompetence stories simply write themselves. And keep on coming. The journalistic gift that simply keeps on giving.

And I defy any journalist in the country to come up with a story that throws a favourable light on the present government's management capability - even their "good" policies have been mangled, mismanaged and mishandled.

Whatever the financial fundamentals may be, they are not going to be a driver of the election result. All-round loss of confidence in absolutely anything the government says or does, is what will guide the outcome.

The following may be of interest:

http://newmatilda.com/2013/04/30/calm-down-about-deficit

Robert
So according to your perspective, everything that everyone in the country earns and produces is the government's to spend as it pleases? The country's wealth actually belongs to the government? It is ridiculous to say the government has wasted too much money - it could always have wasted more, like so many other states have done?

You see, the only reason Australia's finances are in as good shape as they are in, is because of all the people who *don't* share your Animal Farm theory that people are just some kind of chattel belonging to the government