Joe Hockey 's Impact On The Australian Economy

2465 Words Sep 21st, 2014 10 Pages
Whilst Joe Hockey has attempted to replace the age of entitlement “not with an age of austerity, but with an age of opportunity,” by taking extreme fiscal measures, the government have focused the 2014-15 Budget on pulling the economy out of deficit in the future, they have not looked at how the Budget is affecting people at this present moment. As a result, Joe Hockey has failed to show fairness in this years’ budget.
Current State of the Economy
Where did the Labor Government leave Australia’s Economy?
The Labor Government have had a major impact on the Australian Economy, which has made it quite difficult for the Coalition to inherit. Joe Hockey stated that “Sixteen years of deficits without a recession, without any significant downturn, is the legacy of Labor.”(Hockey, Joe. ‘First Step to Repair’) As a result the Liberal Government have had to take immediate remedial action through the Budget in order to pull Australia out of debt, into a surplus. (Musgrave, R. A. n.d)
A budget update from Penny Wong shows that Labor allowed the Budget to go into deficit in 2008-09 due to the global financial crisis threatening to plunge our economy into recession ("Get the Facts on the Budget."n.d). The deficit peaked at $54.5 billion or 4.2% of GDP in 2009-10, which is less than half of the advanced country average. The Labor Government attempted to reduce the deficit in 2012-13 where the federal deficit was $18.8 billion or 1.2% of GDP, compared to an advanced economy average of 4.9%.…
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