A Clear Picture of Australia’s Debt

25 Feb

Barnaby Joyce produces a chart that says it all:

A picture paints a thousand words so a good understanding of our gross debt is seen in the graph (above).

It shows clearly that the Coalition is a government that pays off debt and that Labor is a government that creates debt and Mr Rudd is creating debt at a faster rate than has been seen in recent history. With gross debt currently in excess of $125 billion one would be foolish if they were not concerned by the trajectory of the growth in debt.   How would you feel taking this to your local bank manager as an example of your fiscal prudence, and the ceiling insulation program as an example of your management technique?

If we continue on the trajectory that is self evident in this graph we are most definitely going to arrive at a point of reckoning.

Read the entire article here.

UPDATE: Barnaby offers an updated version of the above graph –

If we continue on the trajectory that is self evident in this graph we are most definitely going to arrive at a point of reckoning. This point of reckoning will place immense pressure on the budget and the delivery of such services as health, education, defence, foreign aid, childcare and everything else that relies on the public purse for payment.
Labor cannot just go on borrowing money at the rate that is portrayed in this graph and it is absurd to look at the trajectory of this graph and say that you do not have a concern. It is vastly easier to manage problems when they are manageable. It is far more prudent to “dot the i’s and cross the t’s” and manage the problem now than to wander into the chamber at a later date with a sorrowful look on your face wishing if only we had that time again we’d have done things differently.

2 Responses to “A Clear Picture of Australia’s Debt”

  1. david August 16, 2011 at 9:59 am #

    Its a pity that the party doesnt use this graph in advertising campains to show the ordinary people how much debt this country is getting into …a lot of people are visual learners !

  2. Knowbody September 4, 2013 at 9:15 am #

    There are some misconceptions here:
    • The assumption that the federal budget is the only important factor in managing the economy. There is *much* more to it than that. If you are going to simplistically pick a single number to represent the economy, GDP is a better number to use.
    •The assumption that all debt is bad. There’s a big difference between spending and investing. The Howard government just did not invest, and sold off assets for a temporary gain.
    • The assumption that saving creates a better economy than spending. The reality is that a healthy economy is one which has money flowing. It’s only possible to make money when someone is spending money. If nobody spends money, jobs disappear.

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