Swan’s irresponsible budget leaves nanny state untouched, passes the buck to Reserve Bank
letter published in The Australian, 12 May 2011
The 2011-12 budget fails the most important economic test by providing for a deficit of 1.5 per cent of GDP in circumstances where it needed to make room for the expansion in mining investment. It’s irresponsible that policy decisions actually add to the deficit next year.
Also, the claimed $22 billion in gross savings over the four years to 2014-15 includes an unidentified saving of $7 billion in the mysterious category of “Other” and effects very little reduction in expenditures that reduce individuals’ reliance on government.
Moreover, the measures designed to encourage employment omit the vital need to reduce the regulation of employer/employee relations.
In sum, this is an economically irresponsible budget that leaves the nanny state virtually untouched.
Des Moore
South Yarra Vic