TL;DR: Treasury published a PREFU yesterday that exposed the Opposition’s claims about the Government being ‘addicted to spending’ and presiding over a ‘fiscal catastrophe’ as both hollow and dangerous, given these politicians are quite likely to be in charge of those same finances in just over a month, and will need to assure foreign investors the Government’s credit is good.
But the PREFU isn’t all ticketyboo. Yet again, Treasury does not include the very real liabilities being stored up for future generations in the form of higher public health, climate, education and housing spending because of the systematic and ongoing underinvestment in infrastructure, relative to population growth of 1.5% to 2.0% per year, which is being pursued by both sides of politics in an unacknowledged, undebated and unplanned-for way that essentially pulls forward well to today’s voters and stores up climate and health liabilities for renters under 40 and/or yet to be born.
Both sides of politics are betting on higher migration and tax cuts to keep themselves in power, but by doing so are freezing in place an unsustainable structure of our tax system and Government that is starving the nation of investment. In essence, Labour and National are consuming today’s cash profits, rather than reinvesting surpluses to help the young deal with a more difficult future, let alone improve their health and wealth. It’s a selfish, short-sighted and fundamentally sociopathic approach to governing.
Paying subscribers can hear more detail in the podcast above, along with the PDF of a powerpoint presentation. UPDATE: I have now opened this up for listening, reading and sharing for all after requests from paying subscribers.
Chart of the day
Our Churn and Burn economy
Table of the day
Global productivity slump? This might be a factor…
Social media users in Australia spend and average of 1 hour and 22 minutes a day on TikTok and nearly an hour on Instagram, reports the AFR’s tech reporter Mark Di Stefano via X
Quote of the day
Saving the furniture V2.0?
“Good thing Labour didn't introduce a wealth tax, capital gains tax, cannabis legalisation or any other policy that may have led to significant change. Wouldn't want to do something at the risk of being unpopular when you can simply do nothing and [checks notes] poll at 26.8%” StrayDogNZ via X
Climate pictures of the day
The disaster in Libya needs more attention
“Emergency workers uncovered more than 1,500 bodies in the flood wreckage of Libya’s eastern city of Derna, and it is feared the toll could spiral with 10,000 people reported still missing,” AP reported with video via X
Maps of the day
It’s supposed to still be the colder months in the Southern Hemisphere
"Twin" unseasonal heat waves in Southern Africa and South America with widespread temperatures >40C in early spring. >40C in South Africa and Botswana,42C in Bolivia and Paraguay,>41C in Argentina and Brazil, ExtremeTemps reports via X.
Cartoons of the day
Cartoons by Sharon Murdoch via The Post-$$$ and X and Chris Slane via Listener-$$$ and X. Please Subscribe to them via those links.
Ka kite ano
Bernard
Wednesday’s Chorus: The PREFU's missing debt