Two Charts Prove Labor Was A Lousy Government

10 Sep

Despite enjoying the highest Terms of Trade (ToT) in the nation’s history …

Click to enlarge

Click to enlarge

… the Rudd/Gillard/Swan Labor government still could not balance the budget.

Not once.

Indeed, from 2009-10 onwards, as the ToT quickly rebounded from the 2008-09 GFC “dip” — thank you China — to scale new all-time record highs, the difference between their May Budget estimate, and their Final Budget Outcome, grew steadily worse*:

Click to enlarge

Click to enlarge

Moral of the story?

If you cannot manage a budget, you should never be allowed to manage other people’s money.

* The Final Budget Outcome (FBO) for 2012-13 has not yet been released by Treasury. Presently, the “estimate” is -$19.4 billion. On past form, the FBO is sure to be worse.

8 Responses to “Two Charts Prove Labor Was A Lousy Government”

  1. mick September 10, 2013 at 9:21 am #

    You wouldn’t find too many (individual) pollies who could manage their own household bugets, let alone the nations’.

    A bit unfair taking the Abbott line about their surpluses when Labor governed through the GFC. You never see this mentioned. The problem with politics in general is that bith sides keep making promises which the nation cannot afford, promises which are then hard to take back for fear of being kicked out at the next election. My forecast: Abbott will sack workers to reward the rich and keep sacking until the budget is back in the black. What a way to govern!! And of course he will more than likely can promises as ‘we can’t afford it’ now that he has the reigns.

    A society gets what it deserves.

    • The Blissful Ignoramus September 10, 2013 at 9:26 am #

      “A bit unfair taking the Abbott line about their surpluses when Labor governed through the GFC.”

      The whole point of this post, and beginning with the ToT chart, is to debunk this rubbish that Labor and its rusted-ons have kept throwing out there to excuse their (and Treasury’s, it should be said) utter incompetence. The ToT chart proves the GFC only had a very brief impact on our economy … it only fell to approx. the same level as it was when Labor came to power, then quickly rebounded, to scale new record heights.

      Labor had record ToT going in their favour … and still could not get within a bulls’ roar of balancing the budget.

      • mick September 10, 2013 at 9:33 am #

        Too many promises and waste. On this I agree.

  2. JMD September 10, 2013 at 10:53 am #

    From Steve Keen. To my surprise, I agree with much – not all – of it. Worth a read.

    • The Blissful Ignoramus September 10, 2013 at 11:08 am #

      Thanks JMD, read it earlier. I broadly agree with Steve’s analysis there re “timing” of governments coming to power … with the caveats that I think he overstates the importance of Labor “stimulus”; completely ignores the abject failure of Labor to get the budget back under control as the ToT rebounded strongly on China stimulus; and (as usual) in his obsession with private debt, he fails to recognise that weakening the government balance sheet via the fastest ramp-up in government debt in the OECD — given the Feds balance sheet underpins the State’s debt, and more importantly, the entire banking system and its credit rating — means that Labor’s budget mismanagement has paved the way to an even greater scale disaster than if we had got a much-needed private debt deflation out of the way. All the Feds did, is kick the private debt can down the road, and by radically weakening the govt balance sheet as well, set the stage for the debt bubble to get bigger, and include more people, before it crashes.

      • JMD September 10, 2013 at 11:14 am #

        That’s because he regards government debt as ‘money’, which is why I don’t take a lot of notice of him.

  3. Kevin Moore September 11, 2013 at 7:31 pm #
    Bill Shorten,
    “………Bob Hawke and Kim Beazley long ago earmarked this former union star as a future Labor leader. And Shorten shares their high opinion. ”Bill is a future champion,” the late Senator John Button once quipped. ”I know that because he’s told me.”
    One Power Index informant remembers Shorten grabbing a seat beside Button at a dinner and bending his ear for half-an-hour, at the end of which the shocked senator told the person on the other side that Shorten had been seeking tips on how to become prime minister.

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