Sinclair Davidson is back to his long standing favourite line of arguing that because the Australian government's tax revenue (when looked at as a simple dollar figure) has, after a post GFC dip, continued to climb since the Howard government, this actually means there is no "revenue problem" but only a spending problem.
Funny how he doesn't mention either population growth (21,542,000 in September 2008, and 23,581,000 in September 2014 - close enough to a 9.5% increase). Or the growth in GDP. (Not sure if inflation has been factored in; maybe it has?)
In short - of course revenue should have grown over the period in dollar terms; the question is whether it is growing at expected rates to cover expected needs of a growing, aging population. To dwell on the rise without context is just ideological propaganda.
And as for arguments about what government is better at covering rather than private enterprise: the recent DeLong/Krugman writings about it are of great interest.
Update: I see Andrew Bolt continues his gullible following of any argument Catallaxy runs and re-posts the Davidson graph and line.
2 comments:
Davidson is very poor at goebellising. The ALP Governments had revenue about the same as the Keating government and this man with a straight face says there is no revenue problem.
If it were a spending problem then inflation and interest rates would be rising not falling.
He never uses ratios only nominal figures. Wonder why?
The bloke could lie straight in bed!
No wonder he nor anyone else would dare comment anywhere else.
in their last budget tax as a % of GDP was 23.7& of GDP.
Post GFC it NEVER got to 22% which it is estimated to get to this financial year.
Of course there is a revenue problem.
Only an idiot or a liar would say otherwise.
Naturally no-one can post this over there!
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