1. What is our level of government debt?
Over the last few decades federal and state governments have interpreted their Constitutionally established roles more and more broadly. Their annual expenditure budgets have increased from $100 billion in 2007 to over $650 billion in 2017 – a 550% increase! In that ten year period, Federal government debt has grown from $60 billion to over $550 billion, and all government debts to over $750 billion. Governments are supposed to exert control over the accumulation of debt. They used to set and abide by statutory limits. In 2007 the Rudd Government set the Federal debt ceiling at $75 billion. This was increased to $200 billion in 2009, $250 billion in 2011 and $300 billion in May 2012. After Treasurer Joe Hockey requested Parliament's approval for an increase in the debt limit to $500 billion in November 2013, the concept of a debt ceiling was effectively thrown out. And look what has happened to fiscal responsibility!
2. Does any country successfully provide for direct participation in democratic processes?
YES - Sweden has been doing it for ages. They have developed a way for the public to have a say on their own Constitution – on the way their society is built and maintained – and they call it “Participatory Democracy”. This provides the ability for citizen initiated referenda on Constitutional change, and sets out some practical rules on how this can work. Switzerland utilises similar rules to encourage public participation in key government decisions, and direct democracy helps many local governments and communities around the world prioritise budgeting and control government spending and initiatives.
3. Which country runs the most successful education system?
Finland is a place of forests, mobile phones, shipbuilding, Santa Clause, the Aurora Borealis - and the world’s best education system. This system achieves a global ranking of the “best of the best” in many reviews of student outcomes. Finland is of course a very different country to Australia – in size, in geography, in climate, in history and in economic structure – but it does share a similar democratic governance structure. Importantly, there appears to be a level of trust within society that supports the education system.
4. Are governments really that inefficient and irresponsible?
Government over-spending and inefficiency is not a figment of my imagination. In 2014 the Liberal government of the day commissioned an audit into government spending. That report highlighted excessive costs and rising inefficiencies, resulting from a lack of clarity in the roles and responsibilities of various levels of government. In it’s summary findings, the Commission put it bluntly – “We have to restrain spending, rebuild our financial capacity and restore the buffer needed to shock-proof the economy from a future crisis….The aspiration is for more responsible government – to spend taxpayers’ money wisely and focus more on what governments should do, rather than on those things that citizens can best do for themselves…..The Commission believes that ‘business as usual’ is not a viable option for Australia. Unless we take action now, there is a very real prospect of an unprecedented run of budget deficits and a build up in net debt. This would place a significant burden on future generations to bring the Budget back under control.”
This report gathers dust in lost government filing cabinets!