Intergenerational plunder (MYEFO 2013-14 Edition)

 

Debt-page-001

 

To finance public consumption by debt is equivalent to the eating up of national capital value. By placing claims against future incomes, with no future offsetting benefit stream, we are lowering the capital value of that expected income stream. To state that even more dramatically, we are bequeathing negative capital value to future generations in our capacities as members of the body politic. (James Buchanan, 1987, “Debt – An Economic and Moral Crisis”, IPA Review 41 (1), p. 56-57.)

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23 Responses to Intergenerational plunder (MYEFO 2013-14 Edition)

  1. .

    It’s still pretty bad in America:

    http://www.zerohedge.com/news/2013-12-16/chart-day-what-generational-theft-looks

    Say what you will about ZH, but they do make up some fairly useful charts.

    I had a look at MYEFO.

    The compounded increase in GDP per capita if all of the waste and debt since 1973 was never taken on would be quite substantial.

    My parent’s generation sold us all down the river to a lower level of living standards and high taxes and long hours to pay them off.

    I hope they are sorry.

  2. Julie Novak

    I do agree with you with regard to the foregone growth in GDP per capita. This is an issue subject to serious empirical research for at least three decades, but usually completely ignored by socialists who mistakenly believe that larger government represents a cornucopia of wealth.

  3. stackja

    My parent’s generation

    were born in the 1900s and lived through the 1930s to the 1980s. I have worked since the 1960s.

  4. Lysander

    60% is a result of Hockey decisions?

    Is that right????

  5. Craig Mc

    In as much if Hockey (and blockers) decides not to overturn Labor decisions, yes.

  6. stackja

    Liberty Quotes
    “Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” — Ronald Reagan

  7. I am the Walrus, koo koo k'choo

    Good work Julie.

    Australians made a very expensive mistake when they decided to use Kevin Rudd to forcibly retire John Howard.

    Honestly, what a clusterfrack. There is something seriously wrong with quality control in the Labor Party.

  8. stackja

    There is something seriously wrong with quality control in the Labor Party.

    Evatt, Caldwell, Whitlam, Keating, Rudd, Gillard, Shorten, next?

  9. Rabz

    My god, reading through this MYEFO is both depressing and infuriating.

  10. stackja

    Rabz
    #1114142, posted on December 17, 2013 at 2:58 pm
    My god, reading through this MYEFO is both depressing and infuriating.

    1996 all over again.

  11. stackja

    SHADOW treasurer Chris Bowen warns the government is softening Australians up for deeper cuts in the May budget.

    Oh my goodness.

  12. HK_Brother

    *Looks at MYEFO*

    F**K ME! …What did the ALP do?!

    Rob the future to pay for the present…This is the Rudd/Gillard legacy.

  13. I am the Walrus, koo koo k'choo

    @HK Brother,

    Incredible, n’est-ce pas?

    Rudd, Gillard and Swan were utterly toxic.

    What the frack is going on inside the ALP??

  14. the sting

    I heard former deputy PM John Anderson, at a forum during the last election, use similiar words ,”intergenerational theft”.That is what the Labor party stands for and I hope it is pointed out to young voters.

  15. Toiling Mass

    Doofus reminds me of that farside cartoon where the sharks have chased the humans out of the water at the beach. One of them notices “Hey! Our fins are sticking out of the water! I wonder how many times that’s screwed things up?”

    Laborites always announce the bad things they are up to by accusing other people of it.

  16. Thadook

    I guess the Howard and Rudd governments shouldn’t have given all those tax cuts then, which largely benefitted higher income households and have lead to the current deficit.

  17. I am the Walrus, koo koo k'choo

    I guess the Howard and Rudd governments shouldn’t have given all those tax cuts then, which largely benefitted higher income households and have lead to the current deficit.

    This person votes.

  18. Jannie

    I guess the Howard and Rudd governments shouldn’t have given all those tax cuts then, which largely benefitted higher income households and have lead to the current deficit.

    It may as well be returned via tax cuts, because there is no point trying to leave a surplus or quarantined investment fund for the next Labor government to manage – they will simply spend it on some folly or other. Labor and the Left do not value money or capital the way conservatives do. They think it comes easy, so they spend it easy. Its not even a political judgement, its just immaturity, like believing in Santa Clause.

  19. johninoxley

    Why do I have to pay a higher rate of tax for the scumsuckers just because I earn more.

  20. JohnA

    Jannie #1114535, posted on December 17, 2013 at 6:34 pm

    Labor and the Left do not value money or capital the way conservatives do. They think it comes easy, so they spend it easy. Its not even a political judgement, its just immaturity, like believing in Santa Clause.

    Yes, the Santa clause gets them every time. :-)

    They also have the standard deficiency: a Marxist/leftist/totalitarian view of wealth being a static pie created via a zero-sum process. Therefore the only way to fix inequalities (NB: NOT inequities) is to redistribute it because “the rich” got that way by taking it from “the poor”.

  21. stackja

    Liberty Quotes
    “In the long run even the most despotic governments with all their brutality and cruelty are no match for ideas. Eventually the ideology that has won the support of the majority will prevail and cut the ground from under the tyrants feet. Then the oppressed many will rise in rebellion and overthrow their masters.” — Ludwig von Mises

  22. Tel

    So “Appendix D: Historical Australian Government Data” contains four years that haven’t happened yet.

    Amazing to think that when I was at school, history used to be what happened in the past. Future Historians were looking at this moment with the pride of achievement yet to be earned.

  23. .

    Thadook
    #1114434, posted on December 17, 2013 at 5:40 pm

    I guess the Howard and Rudd governments shouldn’t have given all those tax cuts then, which largely benefitted higher income households and have lead to the current deficit.

    Reality check Pal – Howard and Costello has surpluses – and the tax cuts benefitted everyone, like scrapping the WST, a lot of tariffs being cut or abolished and income tax cuts created incentive to become wealthy (that you could keep more of it).

    What a pathetic version of socialism you believe in – you don’t even try to indulge the peasants that they’ll ever be rich.

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