Morrison seems to have pulled off balancing act
THIS is an election Federal Budget. It only happens every three years so, as Hot Chocolate made famous, “everyone’s a winner, baby, that’s the truth”.
Treasurer Scott Morrison, is able to splash around the cash because he is the beneficiary of an economy going through a magnificent purple patch of prosperity. A big trade surplus, the best business conditions in 30 years,
booming company and personals tax revenue, record job creation and a Budget deficit below what was expected a year ago.
It doesn’t get much better. What to do with this largesse has been the debate. Buy votes or stash money away for a rainy by paying down debt.
It’s a balancing act which he seems to have pulled off. Company and low to middle income tax cuts, big spending on infrastructure plus specific pork barreling aimed at heartland Baby Boomers around home care and earning extra income in retirement.
The big question is whether the next 12 months are going to “feel” any different to the last couple of years. Because, for most of us, it hasn’t felt as prosperous as the economic figures tell us.
I’d say this is the most hated period of prosperity in Australia’s history.
Statistics still show you have never been wealthier. The average Australian is the second wealthiest in the world behind the Swiss. The problem is that growth in wealth has come through rises in the value of your home and superannuation … neither of which you can either eat or use to pay the bills.
Basically we’re asset rich and cash poor. That’s been the frustration. The economy and our bosses are doing better but we’re finding it just as tough as ever.