David Murray, former Chairman of the Future Fund and former CEO of the Commonwealth Bank warns growing debt-funded entitlement could end with a Europe-style debt crisis.
Hat tip to Unconventional Economist at Macrobusiness.com.au
7 Replies to “David Murray: Australian government spending on alarming trajectory”
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The problem is that the politicians have to give the benefits and not tax the wealthy or they won’t get elected. However at some point, when governments can borrow no more and they have sold every that is worth any thing the party is over. If you want to know what that looks like , just watch the news.
Excellent statement by Murray. For once an ABC interviewee was not incessantly attacked with slanted anti-capitalist questions. He was actually allowed to finish his sentences even though he was diplomatically stating that the current Australian Labor government has stuffed up the economy, even as we experienced a mining boom. This interview was like a breath of fresh air because the ABC (Australian Broadcasting Corporation, a government funded organisation which is effectively controlled by the Australian Labor party) is known for it’s anti-capitalist and pro-socialist big government control stance. One wonders if this interviewer will be promoted sideways. Regarding the subject matter: The Labor party is the political wing of the Australian Union movements. Once in government their allegiance is to the union movement, hence the strangle hold that “FairWork Australia” has on industry in this country. Corporations have no flexibility in terms of Industrial Relations. Julia Gillard, the socialist prime minister of Australia, was the architect of “FairWork Australia”. It is a legislated body designed to enhance the power of unions, to grow union membership, and to call the outcome of any industrial disputes. It is effectively controlled by the unions. BHP and other mining companies in Australia have been hamstrung with ongoing go-slows and strikes since the inception of “FairWork Australia”. Even small business is shackled with the same draconian industrial union-control laws as set for large corporations. Now, we all know that big business and power drunk governments collude with each other to control the population masses. This time I think the mining companies and banks are starting to stand back and look at the almighty mess this Australian Labor government has created in good times. Labor’s defence of it’s economic mismanagement is an incessant drive of spin and lies and personal attacks on successful Australian businessmen and opposition parliamentarians. That is the reason why this interview of David Murray stands out – he was not attacked with lies and innuendo. There is hope for the truth, but we need a change of government to revive that hope.
Vince
How would a change of government change anything for the better of the majority of the population? What do you think should be changed? Your comment states that big business is colluding with the government and then go on to say that BHP (they don’t come any bigger than that) is hamstring , by laws written by the government. You cant have both way’s
I have just listened to Mr Murray. It is the usual stuff trotted out by people who.understand only one side of the economic picture. He explains well that a government,company, family or an individual cant keep on spending beyond their ability to earn. He also talks at length about efficiencies from technical advances which means fewer people same out put.I am sure if he had more time or the right question he would also have explained how we have to up skill/re skill, our work force to meet the challenges of the future. Unfortunately he did not mention some real important points. We (and every where else) simple don’t need as many workers to provide for the human input’s to provide the needs and want’s of the population.
Mr Murray said we need a shift in our mind set and he is right, because people are not just units of production.
The same basic argument: efficiency v. equity. We have to strive to achieve both.
You can watch the debt increasing with every second at the following web site: http://www.usdebtclock.org/index.html Australia’s situation can be found here: http://www.usdebtclock.org/world-debt-clock.html along with other countries. The Labor government in Australia has proven it’s inability to manage the economy and I, as one single business owner, am reluctant to invest or employ any further staff due to the uncertainty that surrounds us. Any surplus cash will remain in cash until the situation changes. I cannot see the situation changing with the current Labor government. They offer me no incentive to take risks to further invest in my business currently. I have friends that are setting up businesses in Asia as opposed to investing further in Australia primarily due to the “FairWork Australia” Laws. Retailers are hurting. Ask anyone in the US or Japan or the UK what “Long Service Leave” is and they’ll stare at you blankly. These are outdated rights awarded to employees in Australia which contributes to our lack of international competitiveness during these modern times. Originally designed in the 19th century to allow employees to sail home to England to see the family and return in time to their employment. How ridiculous is this in 2012? Seriously, how are employers suppose to compete on a global stage with such outdated laws? I will remain patient and wait for the right time and circumstances to invest further.
As Margaret Thatcher famously said “socialism is wonderful until you run out of other peoples money”