Thursday, 2 April 2015
The only advantage to be a senior citizen in Abbott’s Australia is that those over 65 years of age will have less years than younger folk to live in the midst of any social and economic hardship this scenario below may bring down on communities the length and breadth of the land.
The Kouk 28 March 2015:
The Abbott government has no intention of ever repaying government debt. None. It has, quite quietly, announced that it plans to keep borrowing so that government debt remains at 13 per cent of GDP right out to at least 2054-55 which means government debt will be $1.6 trillion. Yes $1.6 trillion of government debt.
The decision to keep government debt at this level was buried in the recent Intergenerational Report. The IGR announced that the Abbott government intends to keep borrowing for at least the next 40 years and therefore maintain government debt "at a level equivalent to 13 per cent of GDP... where it will remain over the projection period [to 2054-55]" (See page 83 of the IGR).
Based on the assumption that Australia's GDP will be around $12.5 trillion in 2054-55, at 13 per cent of GDP, the Abbott government is aiming to have government debt at over $1.6 trillion by 2054-55. It currently is around $365 billion. (This is the level of GDP … implied in the IGR based on the assumption of nominal GDP growth of 5.25 per cent per annum.)