Guess what, what Campbell Newman did in Queensland is exactly what Tony Abbott is going to do to Australia.
That’s really scary isn’t it? Only a big spender would think that Campbell Newman’s policies have been harmful.
The real scare is a returned Rudd Government.
This is the counterfactual.
Imagine the arrogance and hubris. Imagine the self-assurance that Uncle Kevin would have about spending taxpayers’ money.
If Rudd continues to increase spending at the rate which defines his prime ministership, there are three alternative outcomes:
- taxes will increase, probably even the GST
- massive spending cuts will need to be introduced to get the Federal budget back to a sustainable course – true austerity measures
- bankruptcy, chaos and hyperinflation
I admit the last is highly unlikely. But if government expenditure continues to rise at a rate well above government revenue, debt will continue to increase until it gets to the point where no one will lend, and before then Government borrowing rates will increase. But long before then a successor government to Rudd will have to take hard decisions to increase tax and cut expenditure. An unsustainable budget position cannot long be sustained.
That’s the real scare – Kevin Rudd would continue to spend madly putting off to a later government the hard and necessary decisions to bring sustainability to the budget. The net present value of a Rudd government is highly negative.
A little bit of fiscal discipline today will ward off that horror scenario. A little bit of Campbell Newman is just what Australia needs.
By the way, when watching Q&A with Joe Hockey I was struck by how many of the audience seemed to think that spending money is more important than spending money wisely. Surely outcomes matter? Surely we want our government to maximise outcomes and minimise costs? Yet the catcalls and cheers from the Q&A audience suggest the opposite: they would prefer to increase the cost and don’t much care about outcomes.