The Australian Financial Review published a piece I wrote on the 28th of May, 2015, comparing Australia’s fiscal situation to that of Greece.
How far is Australia from Greece? Pretty far, but, sadly, they’re getting closer every day. Not because the Earth is shrinking, but because the Australian government is very gradually easing into Greek financial methods.
Greece provides a brutal reminder of what happens when governments spend and promise beyond their means, make it harder for workers to find jobs, and stifle wealth-creating enterprise.
Previous Greek governments financed government expenditures and consumption through borrowing, ran up staggering debts, made promises that cannot be fulfilled (known as ‘unfunded liabilities’) and did their best to drive work underground or out of the country. Everything seemed fine until it didn’t.
The full article can be read here, thanks to the Centre for Independent Studies.