Bernard Hickey looks behind the headlines in the Crown accounts. Forget the investment write-downs he says:
Government spending is growing at a rate of 9.8%, which was more than twice as fast as revenue growth at 4.5% and twice as fast as estimated nominal GDP growth at around 5%. The government is eating the economy.
Watch the OBEGAL. It is barking that the government is spending too much and taxing too much and employing too many bureaucrats. It is biting us with low productivity growth because our best and brightest are becoming highly paid bureaucrats who now call themselves senior policy analysts. We’re all paying for this with higher wages costs, higher inflation and lower GDP growth.
Ignore this month’s deficit. Pay attention to a government eating the economy.
Eating the economy. A very nice way of putting it.
Hat Tip: The Hive