As outlined in The Australian late last week, the Governor of the Reserve Bank has admitted that increased government spending by the Rudd Government will force up interest rates.
Last week’s rate rise is likely to be only the first of many, as Kevin Rudd and Wayne Swan continue their reckless spending. And it is not only Liberals concerned about this spending spree.
Former Labor Government adviser Professor Ross Garnaut has warned that Kevin Rudd’s ill-founded attacks on free markets risk expanding the size of government and damaging the economy. Labor’s dramatic increases in government spending are unsustainable.
Even the Rudd Government’s own Budget figures show the explosion in the size of government under Labor:
Even more concerning is that this dramatic increase is all debt-driven. As Professor Garnaut points out, we will likely see a “reduction of average incomes and living standards” in the future.
Just as households need to live within their means, so do governments. Sadly, Labor have never learnt this lesson – from Whitlam, through to Keating and now Rudd.
Last week Malcolm Turnbull and the Coalition launched a plan to tackle Labor’s debt and reduce the size of Government to the level it was under the Coalition.
As well as reducing unnecessary government interference and waste a Coalition government will live within its means, in contrast to Labor.