Don’t Believe The Hype
The budget will be out shortly, and those on the conservative side of politics will be sure to be shouting from the rooftops that the deficit is due to Labor over-spending.
Here’s Tim Colebatch with some facts: http://www.theage.com.au/opinion/politics/before-we-tackle-the-budget-lets-clarify-a-few-points-20130429-2iot4.html
In particular, more of the problem is on the revenue side than the spending side, and that is due to a slowing economy.
Had the Coalition been in power throughout the GFC and until now, their avowed policy of ‘no stimulus’ would have led to a recession and to a much *worse* deficit, with much lower revenues.
Tony Abbott has not stated his policy yet – and has billions in unfunded spending commitments – but it’s plausible he would tend toward ‘austerity’, as a conservative (as the UK Tories have) and drag the economy into recession, worsening the deficit.
So please, by all means, let the facts get in the way of a (not so) good story about Labor’s spending and economic incompetence.
Then remember former Liberal treasurer Peter Costello’s comment that Abbott is ‘an economic illiterate’.