Thursday 15 May 2014

BUDGET: There Are Some Words Missing

Praise this morning from all quarters for the government achieving a surplus in its first “post-global-financial-crisis budget.”

There are a few things to say about that.

Be aware this is not a surplus produced in this financial year, but one he will promise for next year. (And that they already have form about breaking firm promises on tax cuts, let alone hints about them.)

And there is still a god-awful debt this government has accrued in its five years of government.

But, it’s argued, we have a big debt now because of the global financial crisis.

No, there are a few words missing in that sentence. We have a big debt now because of the way this government tried to address the global financial crisis.

There were other ways.

Oh. And let's not just assume the global financial crisis is over.

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