Quantcast

Tottenham boss Jose Mourinho insists Premier League table means nothing until ‘February or March’

Jose Mourinho insists the Premier League table means nothing until 'February or March' as Tottenham boss shrugs off title talk after impressive start to...
More

    Wreckage of a Spitfire belonging to WWII hero pilot discovered washed up on Dutch beach

    Wreckage of a Spitfire belonging to WWII hero pilot, 21, who vanished without a trace during bombing mission in 1944 is discovered buried on...

    Tom Cruise holds crisis talks with Mission Impossible 7 director after COVID outbreak on set

    Tom Cruise holds crisis talks with Mission Impossible 7 director Christopher McQuarrie at Venice hotel following 'fears of a COVID outbreak on set after...

    UNC Chapel Hill is locked down amid reports of an ‘armed and dangerous’ person on campus

    BREAKING NEWS: UNC Chapel Hill is locked down amid reports of an 'armed and dangerous' person on campus By Jennifer Smith For Dailymail.com Published:...

    Great Fox: Endangered British spider seen for first time in 27 years 

    Great Fox: One of Britain’s most endangered spiders which liquefies the internal organs of its prey with venom is seen for the first time...

    How Australia will take 30 years to pay off the coronavirus recession

    How Australia will take 30 YEARS to pay off the coronavirus recession as debt levels surge to World War II levels

    • Economist Andrew Charlton fears it will take 30 years to pay off Australia’s debt
    • He was an economic adviser to Labor prime minister Kevin Rudd during the GFC
    • His former boss ended a string of ten consecutive surpluses in its first term 

    An architect of Australia’s never-ending string of Budget deficits fears it will take 30 years to pay off the debt from the coronavirus recession.

    Economist Andrew Charlton said government debt levels had surged by $50,000 ‘for every working-age Australian’ as a result of the COVID-19 shutdowns.

    With gross government debt forecast to surpass the $1trillion mark by mid-June 2022, for the first time ever, Mr Charlton predicted it would take another generation to pay off and return the Budget to surplus.

    ‘If we do something like that, even if we deliver to that level, this debt is going to take 30 years to pay off,’ he told the ABC’s 7.30 program on Thursday night.

    Scroll down for video 

    Economist Andrew Charlton said government debt levels had surged by $50,000 ‘for every working-age Australian’ as a result of the COVID-19 shutdowns. The former adviser to Labor prime minister Kevin Rudd feared it would take 30 years to pay off the government debt

    Mr Charlton was an economic adviser to Labor prime minister Kevin Rudd in 2009 when the Global Financial Crisis caused then treasurer Wayne Swan to renege on a surplus promise made a year earlier. They are pictured together at Parliament House in April 2010

    Mr Charlton was an economic adviser to Labor prime minister Kevin Rudd in 2009 when the Global Financial Crisis caused then treasurer Wayne Swan to renege on a surplus promise made a year earlier. They are pictured together at Parliament House in April 2010

    Mr Charlton was an economic adviser to Labor prime minister Kevin Rudd in 2009 when the Global Financial Crisis caused then treasurer Wayne Swan to renege on a surplus promise made a year earlier.

    This ended a string of ten straight Budget surpluses stretching back to 1998.

    The first-term Labor government delivered a Budget deficit of $54.8billion, which comprised 4.2 per cent of gross domestic product.

    Treasurer Josh Frydenberg last year promised a Budget surplus of $7.1billion but the COVID-19 pandemic stopped the budget returning to surplus for the first time since 2007.

    The Liberal Party’s deputy leader, who once told Parliament – ‘our government is too big’ – this week delivered a Budget deficit of $213.7billion for 2020-21.

    This would comprise 11 per cent of GDP, the highest since World War II.

    Treasurer Josh Frydenberg this week delivered a Budget deficit of $213.7billion for 2020-21. This would comprise 11 per cent of GDP, the highest since World War II

    Treasurer Josh Frydenberg this week delivered a Budget deficit of $213.7billion for 2020-21. This would comprise 11 per cent of GDP, the highest since World War II

    Despite the debt, CommSec chief economist Craig James said Mr Charlton’s prediction was wrong. 

    ‘I think that’s quite a negative view,’ he told Daily Mail Australia.

    ‘Our economy was already in very, very good shape going into this crisis.

    ‘When this crisis ends and the borders are open again, I think the economy bounces back quite quickly, so I would certainly not be as negative as some of the doomsayers out there.’ 

    Mr James said Australia could return to a Budget surplus in as little as five years provided there was a COVID-19 vaccine, immigration resumed and there was sustained economic growth of three per cent.

    ‘To get the Budget back into the black, you need a sustained period of solid economic growth,’ he said.

    In 2009, then treasurer Wayne Swan delivered a Budget deficit of $54.8billion, which comprised 4.2 per cent of gross domestic product

    In 2009, then treasurer Wayne Swan delivered a Budget deficit of $54.8billion, which comprised 4.2 per cent of gross domestic product

    ‘If we saw four, five years of three per cent growth outcomes, we could be knocking on the door again of Budget balance or surplus.’

    Former prime minister John Howard and his treasurer Peter Costello returned the Budget to surplus in 1998 – seven years after the 1991 recession.

    Unlike that recession and the GFC, Mr James said this coronavirus downturn was not based on underlying financial problems.

    ‘The situation is completely different because it’s an outside event,’ Mr James.

    Three decades ago, the late Bob Hawke was in his fourth term as Australia’s longest-serving Labor prime minister, mobile phones were the size of bricks in suitcases and the internet was a university research project in the United States. 

    Paul Keating was a frustrated treasurer who two years earlier had brokered a leadership transition agreement with Mr Hawke at Kirribilli House on Sydney Harbour, that was ultimately welshed. 

    Mr Keating had, in 1988, returned the Budget to surplus just five years after the year-long recession of 1983. 

    Three decades ago, Bob Hawke (right) was in his fourth term as Australia's longest-serving Labor prime minister. His ambitious treasurer Paul Keating (left) had, in 1988, returned the Budget to surplus, five years after the 1983 recession

    Three decades ago, Bob Hawke (right) was in his fourth term as Australia’s longest-serving Labor prime minister. His ambitious treasurer Paul Keating (left) had, in 1988, returned the Budget to surplus, five years after the 1983 recession

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Latest Posts

    Billionaire investor Leon Black denies he was blackmailed by Jeffrey Epstein

    Billionaire investor Leon Black denies he was blackmailed by Jeffrey Epstein after ‘he paid up to $75million to the disgraced financier for professional services’ Financier...

    The President’s Taxes: A Reader’s Guide

    Over the last several weeks, The New York Times has published the findings of its investigation into more than 20 years of President Trump’s...

    The Race for Miami’s Perennial Tossup Seat Starts Leaning Democratic

    MIAMI — It felt like 100 degrees on a recent Saturday when Carlos A. Gimenez, the Republican candidate in Florida’s most competitive congressional race,...

    Chelsea boss Frank Lampard ‘lines up deal for Borussia Monchengladbach defender Matthias Ginter’

    Chelsea plotting another raid on the Bundesliga 'as Frank Lampard lines up deal for Borussia Monchengladbach defender Matthias Ginter' following summer arrivals of Timo...