Croaking Cassandra had a good article on not-very-bothered-by-deficits. It was on Around the Traps. It looks at the New Zealand situation. They are in a much more dire situation than us in Australia. The Labour government spent way too much money and a lot of it was ongoing not one-off as should have been the case.
The structural deficit here is around 2% of GDP.
It seems to me the current government is a bit like the government led by Kevin rudd. They know we have a structural deficit problem but simply do not believe they can successfully prosecute the argument.
Now is the time to address the problem. Yes the government has the problem of trying to do this when the RBA is attempting to slow the economy but at least attempt to start to address the problem.
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