Australia - The Envy of the World

IMAGINE a country of about 25m people, democratic, tolerant, welcoming to immigrants, socially harmonious, politically stable and economically successful; good beaches too. It sounds like California 30 years ago, but it is not: it is Australia today. Yet Australia could become a sort of California—and perhaps a still more successful version of the Golden State…

Read the full article at The Economist... 

Economic Growth is measured in the changed in GDP. 

Australia's Economic grwoth between 1998 and 2007 grew by 3.6%. 

Currently it's at about 3.3%. The lowest point in Australia's GDP was in 09 when the effects of the Global Recession were felt. 

What does Australia's debt look like? 2011-12 = 9.6% GDP, 2012-13 = 11.4%. 

While comparing to nations around the world in 2013: 

• Australia 9.4%
• Canada 33.4%

View a full list of Countries by public debt at Wikipedia.

View a list of Countries by tax revenue as percentage of GDP.

Econoimc policy dominates public policy.
Has changed significantly in structural reform, 1983 - present.
Australia has a good story in econoimc policy.
But can't afford to relax. Economic policy is difficult and faces significant challenges.

Party Promises

Both parties promised growth, jobs, low interest rates and fiscal responsibility.

Both major parties blame each other for the problems within Australia.

Some promises made by the Coalition include:

• 4.3 Billion parental leave scheme.
• Axe carbon pricing and mining tax.
• $18 Billion infrastructure over 5 years.
• Savings of $43 billion, including: 
  • foreign aid $4.5 billion.
  • 12,000 fewer public servants $5.2 billion.
  • 'Stopping the boats': $1 billion.
• Fiscal position better off by 6.3 billion over 4 years:
  • Deficits still projected for? years.
  • Tony Abbott: a 'situational Keynesian'
• Policies on asylum seekers, broadband, climate change not submitted to PBO (Parliamentary Budget Office) 

Commissions of Audit - A big part of the challenge for whoever takes on the Commission of Audit will be finding areas to extract sizeable savings outside designated ‘frontline’ areas that have been quarantined that include public-facing staff at Medicare, Centrelink, the Australian Federal Police, Defence and Customs.

Politics of Policy 

Hartcher 2011 assessment of both political parties: 

Government is the critical element in good policy, and good policy is the critical element in economic outcomes.

If the electorate will not reward good performace, why bother performing?.. It's much easier to deal in cheap populism than good policy, to run fear campaigns than reform agendas, to demonise the rival party than to propose better alternatives.