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Thursday, 5 March 2015

How can we take them seriously? - The AIM Network

How can we take them seriously? - The AIM Network



How can we take them seriously?

The  inter-generational report released yesterday
is no more than a crafted opportunity for those on the conservative
side of politics to scaremonger and justify their evil intent. They have
tailored a document to suit their own agenda. Just who do these pompous
pretenders think they are?


The report itself
tells us nothing we didn’t already know, or could not have suspected. It
paints a picture very similar to 2010 when I recall the media went into
hyper drive over the prospect of a BIG Australia. The fact is a larger
world population is inevitable which means our future will be no
different from those experienced in most OECD countries.


Each
nation faces increased health costs and aged care planning. Everything
will increase proportionately including revenues from greater work
participation, all of which will be serviced through innovation,
creativity, new technologies and so on. So what is all the fuss about?


To
suggest that those living in 2055 will somehow have a poorer standard
of living than we do today because we didn’t plan properly, is silly.
Each generation throughout history has enjoyed a better lifestyle than
the one before. Why would the next three generations be any different?
Each generation assumes responsibility for its own destiny and acts
accordingly.


One of the more interesting claims
is that there will be proportionately fewer numbers in the workforce,
thus putting pressure on our ability to provide adequate aged care for
older Australians. That trend has been occurring for decades and is the
product of families having fewer children.


immigrationTo
compensate for that, it would seem logical to increase the immigration
intake with the emphasis on young families, effectively slowing down the
ratio of those employed to the ageing rate…oops, hang on, that’s what
successive governments have been doing, until now. But not this
government.


It chooses to continue increasing the
numbers of 457 visas for overseas workers, suppressing employment
opportunities for those out of work today and literally contradicting
itself and acting counter productively to its own findings.


It makes it very hard to take anything they say seriously.

While
we clearly need responsible planning to meet the challenges that occur
with what are quite natural demographic shifts, i.e. an ageing
population, that doesn’t mean we must run budget surpluses to achieve
it.


Budget surpluses merely alter the sectoral
balances; in this case, money withdrawn by government results in a
savings reduction and/or increased debt borne by the private domestic
sector.


If governments continue to try to run
budget surpluses to keep public debt low, that strategy will ensure
further deterioration in household savings until such time as aggregate
demand decreases to the point where economic activity slows down,
unemployment increases, revenues fall and real living standards decline.


prosIf
this inter generational report highlights anything it is that this
government has no idea how to address it. Everything the report tells us
contradicts what the government is doing. In effect, we are undermining
our future prosperity and missing a wonderful opportunity to expand our
economy exponentially.


And still, not a word about the impact of climate change. What an incompetent bunch of boofheads.

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