A Surplus of Deficits Or a Deficit of Surpluses
Never has the difference in budget strategy between the main political parties been so clearly defined. Labor does deficits, the Coalition does surpluses.
It is true that first time round Wayne produced a budget surplus. This was an unfortunate temporary glitch because it took him till his second budget to clear up the huge surplus mess left by John and Peter.
Labor’s policy is to avoid budget surpluses at all costs as they upset the unions too much. The unions hate them even more than company profits because they are usually wasted on paying off deficits.
Labor’s budget deficits however have made an outstanding contribution to Australian living standards. The party realises that infrastructure development and welfare reform are only affordable when you throw off the shackles of making a surplus and dive unrestrainedly into deficit.
The Coalition’s rigid focus on delivering surpluses means they can never afford to invest in roads, hospitals, pension increases, paid parental leave and sufficient overseas aid to guarantee Kevin a retirement gig at the United Nations.
Gough, Joan Kirner and Paul Keating all spent their way merrily into deficit secure in the knowledge that when they got kicked out for profligacy the Coalition would produce surpluses to pick up the tab.
Wayne’s legacy will be a different matter. Surpluses may not be enough to pay it off. The Coalition may have to take desperate measures to make up the shortfall by selling their bodies. Medibank Private and Telstra are arguably the most attractive they could offer.
If Kevin and Wayne are serious about getting out of debt and deficit they will adopt the Kennett doctrine. But don’t hold your breath. The unions believe the doctrine is the Taliban edition of work choices.
It was immensely reassuring to hear Wayne talk about the deficit as temporary, similar to the Sydney Harbour Bridge toll.
Japan has gone so deep into deficit they’re pioneered a breakthrough budget concept called deficit surplus. Now there’s an idea for Wayne. He might not be so coy about discussing the size of the budget deficit if he could present it as a surplus.
True to form the Coalition government in Western Australia has just declared a budget surplus. Kevin must be really pissed. It spoils his grand vision of leading an Australia totally united in a crusade of deficit nation building. He’ll probably try to fix things by sending WA the bill for Peter Garrett’s overseas junkets.
Life offers some pretty daunting possibilities at the moment. Wayne is threatening to drown us in debt, Malcolm is threatening to hang us out to dry on a lifeline of economic rationalism and Bob Brown is threatening us with tornadoes, soaring temperatures, plague and pestilence. Presumably that’s like living in Melbourne.
And another thing. If life wasn’t meant to be one long surplus how come there’s never a deficit of politicians?
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