Massive budget surplus - Australia

[trev]

The Federal Government of Australia has just announced a $14.4 billion budget surplus. This is despite taxcuts amounting to maybe 10billion or so over several stages. The state governments are also generally recording substantial budget surpluses as well, proably amounting to an aggregate of about 3billion.
Some would say that Australia must have a very strong economy and in many ways that is true, but we do run a current account deficit of about 6% of gdp, maybe higher. It seems that very large government surpluses are of no assistance to reducing current account deficits, although very large government deficits are often blamed for large current account deficits.

[Bkeela]

Pretty easy to get a budget surplus when you sell public assets and basically do nothing but reap in tax. Denying people fair industrial relations will no doubt garner an even fatter surplus next year.

The Queensland government had a budget surplus. Don't mind the fact that the health system is falling apart, and almost every public service is understaffed.

[Flip McWho]

Agree with Bkeela. You might be making a lot of money but you're ****ing over the worker in the process.

[chequita guevara]

Capitalists always seem to forget that their workers are also their consumers. Screw the worker, you screw the consumer. Screw the consumer and you screw yourself.

[Dracon II]

Mark Latham during last year's election considered introducing legislation, were he to become PM, requiring governments by law to keep the budget in surplus.

What an idiot.

(edit: he was leader of the Labor party!)

[Zkribbler]

Originally posted by chegitz guevara
Capitalists always seem to forget that their workers are also their consumers. Screw the worker, you screw the consumer. Screw the consumer and you screw yourself.

Wooo, that's going in my sig!

[Asher]

Originally posted by chegitz guevara
Capitalists always seem to forget that their workers are also their consumers.

I guess that's why capitalists are so against giving the workers more of their money to spend in the market, by way of lower taxes.

[MrFun]

How about a higher minimum wage, Asher?

[Urban Ranger]

Originally posted by Asher
I guess that's why capitalists are so against giving the workers more of their money to spend in the market, by way of lower taxes.

Most tax cut schemes benefit only the rich.

Of course, tax cut is not the only way to put money into the pockets of workers.

[Asher]

Originally posted by MrFun
How about a higher minimum wage, Asher?

Higher than what?

Alberta just raised its minimum wage from $5.90 CDN/hour to $7 CDN/hour, and our economy is still doing fine.

In fact, in a successful conservative economy like Alberta it's virtually impossible to even find a job anywhere near the minimum wage.

The local Superstore (Loblaws/grocery store/etc) starts people at $9/hr.

[Asher]

Originally posted by Urban Ranger
Most tax cut schemes benefit only the rich.

Of course, tax cut is not the only way to put money into the pockets of workers.

You're right, the goal is to find an ideal point for wages earned and profitability of the company. Some call this the "market price" -- interesting, no?

[Zkribbler]

Originally posted by Asher
I guess that's why capitalists are so against giving the workers more of their money to spend in the market, by way of lower taxes.

I dunno about Canada, but the Bush tax cut isn't giving the worker's money to them. Rather, Bush is borrowing money from China to distribute as tax cuts to Americans -- most of which is going to America's richest 1%. Then our kids, grandkids and greatgrandkids get to pay China back.

[Asher]

Bush is a republican, not a genuine conservative. Christianity and all.

[Dinner]

The ideal situation is a balanced budget but if the choice is between deficits or surplus I know which I'd choose. Besides, if the Australian government could save that money for a rainy day or to finance public retirement funds then it would be well used in the long run. Having a nest egg isn't a bad idea.

[Zkribbler]

Bush is a republican, not a genuine conservative. Christianity and all.

Agreed. Somewhere Barry Goldwater is spining in his grave.