Despite 27 years of economic growth, Australia on track for $600 billion debt
Though often swept to the periphery of the news cycle, the fact remains that Australia is currently heading towards a $600 billion debt.
With any deficit placing us in a precarious position should economic downturn come knocking, it’s thought Australia’s 27 years of uninterrupted economic growth has made our politicians unaware of the crippling realities of recession.
Instead, politicians are caught in a naive and costly political experiment based on a fiction of unlimited debt and taxes, according to Maurice Newman.
“I just see the situation deteriorating,” explains Newman.
“Because all I get out of Canberra is there is only going to be an expansion, there is never going to be a downturn.”
“The politicians go along as if there is never going to be any correction, but the underlying economic activity is slowing and we are unprepared.”
“They just keep on spending money.”
It looks as though the debt has permeated beyond the confines of Canberra, with Australia now bearing the second highest household debt-to-income ratio in the world.
A recent study even suggested that a quarter of Aussie households have less than $1,000 in the bank.
“We’ve had the highest population growth of any country in the OECD. With this and the competition for jobs, there has been virtually no real increase in household income. Yet power prices, petrol prices, everything is going through the roof.”
“This is why households don’t have anything in the reserve.”
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