The World’s Smallest Sledgehammer

A favourite saying of mine is “There are 3 kinds of lies……………lies, damn lies and statistics”

Wayne Swan said last monththe high dollar, and lower terms of trade, have resulted in a $7.5 billion sledgehammer hit to revenue in the federal budget”

Wayne Swan was in fact referring to Labor’s previous figures whereby they had incorrectly forecast revenue to be $7.5 billion higher than it was going to be.

For today’s article I have borrowed a diagram from the IPA newsletter entitled the World’s Smallest Sledgehammer.  Wayne Swan was using statistics to make you feel sorry for the poor government who suddenly had billions of dollars lost to them. The diagram below shows in fact that Labor did not lose $7.5 billion, rather that the increase was smaller than they forecast.

The World's Smallest Sledgehammer

 

 

 

 

 

 

 

 

 

Using the Global Financial Crisis, the high dollar, and lower terms of trade as a reason for our large deficit is a crock.  Based on the above figures, government revenue has increased year on year and, even if you allow for inflation, Labor still has more money.

As I said in my article yesterday the reason that we are increasing our debt, is because the government is spending too much money.  Labor has implemented a growing welfare state and has handled other matters of expenditure incompetently.  One only has to look at the well documented pink batts, and school hall fiascos to see how inept they really are.

Tony Abbott in his reply to the budget is confident that he can keep the tax deductions in place while getting rid of the Carbon Tax.  He is confident that the Coalition will be able to find enough savings from the overspending, and that this will be done without causing problems in the economy.  This is quite evident.  We do not need to get rid of existing programs, rather we need to eliminate the waste that each of those programs has.  For example the bad handling of the asylum seekers has caused government to spend $3.2 billion more than they had budgeted.  What is needed is a government that does what it was elected to do…..govern!  Making hard decisions is never easy, but that is what a good government does.  It not only has the job of running the country, and implementing policy, it also has the responsibility of handling all the taxes correctly and competently.

It is time for a change, and this September 14th we ask you to

Vote 1 Rise Up Australia Party!

 

Posted on May 17, 2013 in Uncategorized

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Responses (5)

  1. ralph
    May 21, 2013 at 8:43 pm ·

    For every complex problem there is an answer that is clear,simple and wrong. The pink batts and school halls spending occurred in 2009/10 and as evidenced in the graph above was at the height of the downturn. If these programs were not instituted there would have been a much higher level of unemployment, with its accompanying misery. And so your point is? As for the waste – I challenge you to identify it – and not some glib line about $3.2 billion in asylum seeker costs which is less than one percent of total govt expenditure – ie 2/3 of b***** all. The coalition will also bang up refugees in overseas camps which will cost the same.

    • Admin
      May 21, 2013 at 9:56 pm ·

      Ralph for every complex problem there are normally answers that are clear,simple and right. I did not say that implementing the programs was wrong. My Question to you: How many people need to die before you stop a program. The answer is obviously 4 if it’s the pink batt program. http://www.abc.net.au/pm/content/2013/s3754863.htm
      Let me ask you another question. How many assylum seekers came during the Howard period, and how many have come during the Rudd/Gillard era?
      In my opinion if government cannot make a tough decision, and that costs you money, then that is waste.
      I have a list of over 30 programs that have been wastefully run. Using your argument if each of those is only 1% of government spending, then that is a 30% waste. Hardly nothing!
      If you don’t believe me, just type in “Labor waste” in Google and see what comes up. To make it easy try http://www.international.to/index.php?option=com_content&view=article&id=5261:labor-waste-.. … or the Coalition site http://www.youtube.com/watch?v=4GpVh10kyI4

  2. Phil.
    May 21, 2013 at 3:15 am ·

    ‘Based on the above figures, government revenue has increased…’

    Yes, but has Australia’s REAL revenue increased? In real income terms, I think you will discover that, as usual under left-wing administrations, the rich get richer and the poor get poorer. There has been a downturn in mining royalties/tax receipts, indicating a downturn in national income. Yet because wages are artificially regulated and go up automatically, tax receipts from ordinary taxpayers (not to mention the GST component of ever-increasingly expensive necessities) keep going up. Revolving door. Jam the door, say, with a serious downturn in China’s manufacturing & construction, and Australia could find itself having not only to repay serious government debt (with reduced capacity to do so) but could be handed a credit rating downgrade and ever higher debt repayment penalties. Your graph above does not necessarily tell us about real national wealth.

  3. Ash
    May 19, 2013 at 8:17 am ·

    Labor has finally come up with a budget that is going to bring us back to a surplus. Isn’t this a good thing and we throw our support behind them?

    • Admin
      May 20, 2013 at 9:05 am ·

      The problem Ash, is that Labor have been promising a surplus for a long time now,so it is highly unlikely that they will be able to keep this one either.

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