DEAR News Of The Area,

OUR government debt stands at over $900 billion, which is much higher than it has ever been in recorded memory.

So, does this affect us in terms of our daily lives or is it just a headache for the treasurer?

As government debt increases, so does the percentage of tax revenue that goes towards servicing the debt with interest payments.

This means that expenditure on our infrastructure, education, public health, social security and aged care suffers.

Public debt increases inflation, and devalues the dollars earned by Australians.

In the long run it leads to higher interest rates which drives up house prices.

In short, government debt results in a lowering of our standard of living and a slowdown in economic development and community provision.

We are led to believe that the present government is a safe pair of hands when it comes to managing the economy but they have seriously mishandled our economy in recent times.

They have substantially increased our public debt, supported big corporations in allowing them to pay no tax, have misspent on Job Keeper payments and seem to believe that “borrow now pay later” is good economic management.

We need to consider whether ‘going for broke’ is always the best way to go.

Can this government in truth say they are good managers of the economy?

We need to see beyond the slogans and look at the figures.

Regards,
Marlene GRIFFIN,
Valla Beach.