Reviving Australia’s Economy
From a business perspective everyone needs to look for a progressive revival of Australia’s economy and not be self-interested in the ‘what’s in it for me’ syndrome.
I believe the governments focus on a budget surplus is correct, however there needs to be strategic intent by including plans for overall tax reform relative to new investment and payroll tax.
For any business, a balanced budget is a protective measure against unforeseen economic shocks and uncertainties and as we all know the world is currently facing severe challenges with monetary and fiscal management.
Even China has the largest debt bubble in the economic world which I believe is unsustainable as many businesses are operating on IOU’s due to an inability to pay their debts. When you put this into context with a debt-based IOU system of $200 billion, I shudder to think of the impact a collapse of the Chinese economy could do to Australia?
Australia has never been better placed to borrow money given the low interest rates and then to utilise these borrowings to underpin an infrastructure stimulus spending plan.
We must also realise that ongoing national budget deficits will have serious adverse consequences which will prevent Australia from getting back on top of interest payments needed to service debt.
2020 and beyond will bring another set of unique challenges in a fiscal sense, however instead of us looking at our own self-interest, we should look at how Australia can prosper sustainably and when this occurs our self-interests will be catered for.
