I am having a difficult time understanding some sectors of the Australian community at present, particularly the opposition leader and the Business Council.
They want to bring forward tax cuts to Australian workers – who doesn’t. At he same time they want to increase welfare payment to the elderly by $30 a week, and that sounds reasonable as well – actually the latest call from some sectors is to also increase welfare payments to the unemployed by $30 a week.
It all sounds great. More money for those on welfare – and they do need it. More money for workers and small business – and they need it too. However, there is one little tiny flaw to everyone’s thinking and that is employment. Unemployment is set to rise steeply in 2009.
Can you tell me any budget that can handle a reduced tax on a reduced workforce whilst paying out extra in welfare payments to more individuals receiving those payments.
I’ve heard of a double whammy before – is this an economic quad whammy? Really, can we afford to go down this track or is there an alternative. Employement needs to be the Governments primary concern. Employment reduces two of those four budget drains, fewer on welfare and more paying tax. Perhaps then you can look at tax cuts and welfare increases. They are needed – we just cannot afford them at present.
