Spending money we don’t have is never the answer

IN 2011 the Aussie dollar would get you around $US1.10 today it will get you barely 70 cents.

That’s great for exports but imports come at a premium.

Ours is a big country, travel, distribution and transport come at a cost.

We import vehicles and fuel which by extension adds to our everyday cost of living.

Transporting those groceries from farm to the fridge, the machinery and fuel used in construction and the high cost of clean energy generated from imported components all take their toll on a balanced family budget.

We can’t even afford to drown our sorrows in a beer because it, like fuel, goes up every year under a government excise.

Looming over all that is the national debt which increases with the fall of the exchange rate and more borrowings.

There’s little point in arguing about how we got here except to learn from it. In simple terms, if your family income is $1500 a week you can’t spend $2000. Eventually, someone will come knocking on your door wanting payment. The same principle applies to government.

Sure, it’s depressing and there is no easy fix, nor will the fix be painless, but it’s not the first time we have dug ourselves out of a hole. It stars with our politicians.

Spending money we haven’t got, no matter how emotionally appealing the cause, is not going to draw down the national debt.

Let’s be frank, it’s really about winning an election and dealing with the fallout later. Sorry kids!

In a balanced budget there are always losers when governments start to pork barrel, either increased taxes or money is taken from some other sector including our future economic security.

Investment is paramount. Investing in projects that generate jobs and an income stream will also reduce government spending on unemployment, money that could be used to draw down our debt or pay for critical infrastructure. There are many public private partnerships that deliver this type of investment and savings yet political rather than economic considerations seem to take precedence.

Be it local, state or federal, the next time there is an election, think carefully before you vote.

The candy offered in one hand may give you a bellyache while the other digs into your pocket. BOB JANSSEN PRESIDENT, GOLD COAST & HINTERLAND BUSINESS ALLIANCE