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Economist Richard Denniss of the Australia Institute on the economic “virtue” of the first Abbott budget

With even Clive Palmer criticising the recent budget as “for the lobbyists and Liberal donors” there is much to discuss and be concerned about in the Abbott government’s first budget.

For a discussion on the economic level we speak to Richard Denniss, Executive Director of the Australia Institute for some of his analysis.

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One Response to Economist Richard Denniss of the Australia Institute on the economic “virtue” of the first Abbott budget

  1. Project Studio Consulting May 21, 2014 at 3:45 pm #

    Mr Dennis is not acknowledging that the income tax levy he supports is temporary, whereas there will be permanent cuts to health. education, higher HECS loan interest rates, co-pay levies on GP visits and the likely extension of GST to food and other basic living essentials (likely at an even higher 20% rate). Taken as a whole, there really isn’t any progressive value in the proposed Abbot budget. Quite the contrary, the budget is being used as a political tool in service of an ultraconservative social agenda. I see too many undernourished, uneducated and disabled people in the street these days to be able to reconcile moves in the direction of austerity. Abbot and Hockey will bluster and threaten to get their way. Instead the country needs to follow through with the bold moves made at the start of the GFC – we need continued investment in our local resources and industry to keep liquidity in the economy. Taxes and levies are the opposite and will dry up what liquidity we have. A surplus is not needed. Debt must be kept manageable, but these days money can be borrowed by banks at essentially 0% interest. (Why do we want to charge more interests to students? Anyone?)

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