Government Expenditure

Bernard Hickey looks behind the headlines in the Crown accounts. Forget the investment write-downs he says:

Government 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 too much and taxing too much and employing too many bureaucrats. It is biting us with low growth because our best and brightest are becoming highly paid who now call themselves senior analysts. We’re all paying for this with higher 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

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