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May 18, 2004
I haven't really been following the screeds of commentary on the Costello budget. However, it does appear that this account still holds.

Alan Moir
Australians say thankyou for the tax cuts and the family payments. They will help us out for the past price increases and forwhen interest rate rises start to bite on the mortgage repayments. Then they act as citizens and ask: where is the money for the much needed improvement in health and education services?
Their judgement is: the money is in the kitty. It is time to spend. So why was it not spent on where it was needed most, and for the good of the nation?
The ALP people are starting to rub their hands. Their step is lighter. Their hearts are singing, and they are smiling as autumn slides into winter. They have a bounce in their comportment. They smile and say quietly amongst themselves, "it's looking good for August 7."
The euphoria should be tempered. The policy debate is not being engaged in any serious way. It is all short-term thinking about how to present the best possible package to win over the electorate. The focus of the party strategists is on short-term outcomes not serious reform that addresses long-term policy issues: environment; infrastructure renewal; a better tax system and aged care.
An opportunity squandered, you could say. What was delivered was a strategy based on an an easy ticket to power with a few weeks of campaigning centred on a quick budget bounce in the key marginal seats in outer Brisbane and western Sydney.
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I heard on the radio this morning that the federal govt's unfunded superannuation liability will reach $97 billion dollars in three years.
I am not an economist but that sort of figure, together with the aging population, makes me think the govt should be putting the surplus (can a govt ever really have a surplus?) away for the future.
Also according to this economist the govt will get a nice windfall from the current oil and petrol prices. Those prices will also fuel inflation, lower consumer spending etc. Spikes like this, he said, are usually followed by recessions.