A favourite saying of mine is “There are 3 kinds of lies……………lies, damn lies and statistics”
Wayne Swan said last month “the 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.
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!