Friday 23 August 2013

Costello, Howard created Budget black hole

Words cannot express the depths of my contempt for the Australian political class but as the Bee Gees song says "words are all I have." I say "political class" because both major parties are no more open to newcomers or new ideas than a Mafia family. The are self perpetuating elites reinforced by funding direct from the taxpayer. If the electors allow themselves to be treated like idiots, then it is natural the contenders for office will treat them as such. Why aren't they discussing the $70 billion deficit and how they will mitigate its effects on the body politic? The deficit can only get worse.

It's hard to say who sees the electorate as the greater fools, Kevin Rudd or Tony Abbott. Rudd flipped out again in Brisbane, inflicting his bile on a poor makeup artist, an incident well reported in the Murdoch papers. It is well known in political circles that Rudd is regarded by his troops as being mentally ill and is said to be suffering from Asperger's Syndrome. As for Tony Abbott, he was back on the box a few days ago doing what he loves best -- acting like a bogan. And no, these are not trival issues. We have no way of knowing what Rudd or Abbott will do in office, all we can do is assess their characters. Until we can recall governments, all he have is a ballotocracy where were stuck with an elective dictatorship for three years.

No party should be making any spending promises. They should say the kitty is empty. Just how deep the Budget black hole is is open to speculation, but it ranges from $30 to $70 billion. Abbott and Rudd should treat the electorate like adults and say it is irresponsible to make spending pledges and talk about the programs they are going to cut. The China boom is over. They should say so.

First among these cuts should be the middle class welfare with which Costello and Howard bribed the electorate to win their string of victories. Howard was like the out-of-town uncle who always turns up with a pocketfull of lollies. Costello was never liked. It is still possible to find copies of his autobiography, heavily discounted, in remainder bins around the city. Costello didn't have Paul Keating's "flash Harry" charm or John Howard's avuncular bedside manner. Costello and Howard used the early returns from the China boom to bribe their way to power. The GST was the means by which they extracted  these bribes from the electorate.

Costello and Howard turned the Australian middle class from a group of proud, largely self sufficient people into a class of mendicants, always  seeking handouts from the  government. Australians have always been keen on getting money from the government and were only too ready to be bribed. But just try taking this money off them.

I once had a very good friend called Bill Moy. Moy was a multimillionaire and among other endeavours, was heavily involved in the Victorian Division of the Liberal Party for many years. Once, during the many games of rummy with which we spend our evenings in Taipei, he asked me "What is the primary aim of a political party?: I answered "To govern well." Moy replied  "Not at all. The am of a political party is to win and retain power." That is the way politics works in Australia.

Mainly due to that attitude, I think Australia is beyond saving. Unless someone emerges with the balls, like Bob Hawke and Paul Keating, to tell the Australian people that the party's over, the black hole will only get deeper. As for the  Gonski bribes for teachers, the disability scheme and all the rest of the Rudd-Gillard programs -- they were totally irresponsible but you can't expect better from most Labor governments. All you can say is that on current evidence, Tony Abbott will be worse. I am sure Tony Abbott believes in something, but economic rationality is not one of them.

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