Fifty cent public transport and state-owned petrol stations with price controls sound awesome.
And everyone wants to see childcare workers get pay rises and have $300 off their power bills.
But the economic policies of state and federal governments are not only misguided but also reckless, given the staggering debt levels both are carrying.
As of the latest figures, Queensland’s debt is projected to soar to $188 billion by mid-2027, a massive burden that reflects the government’s inability to manage public finances responsibly.
Similarly, the Commonwealth’s net debt is expected to peak at $1.2 trillion by 2025-26.
These debt levels are unsustainable and represent a ticking time bomb for future generations.
The idea that increased government spending will alleviate the cost-of-living crisis is a dangerous fallacy.
Instead, this approach is fueling inflation, driving up interest rates, and ultimately making life more expensive for everyday Australians.
The Reserve Bank of Australia (RBA) has repeatedly warned that government spending is keeping inflation higher for longer.
As RBA Governor Michele Bullock noted this week, “The stronger outlook for public demand reflects ongoing spending and recent announcements by federal and state and territory governments.”
Moreover, the Queensland government’s decision to implement a 50-cent public transport trial, which will forgo $150 million in fare revenue, is a prime example of this irresponsible spending.
While the government claims this initiative will reduce costs for commuters, the lost revenue will likely lead to higher taxes or cuts to essential services, further straining Queensland’s already fragile fiscal situation.
At the federal level, the Albanese government’s continued spending, despite its alarming debt levels, is equally concerning.
The RBA’s forecast that public demand will grow by 4.1% in the coming year, up from 2.1%, is a direct result of increased government spending.
This is not just a short-term issue; it has long-term implications for the economy, with inflation expected to remain above the RBA’s target range until at least 2026.
The Family First Party advocates for a return to fiscal responsibility. This means cutting unnecessary spending, reducing debt, and focusing on sustainable economic growth.
Governments created the cost of living crisis with their net zero policies and out-of-control spending.
They can’t fix the cost of living crisis by borrowing more money to give back to us in “cost of living relief”.
That is like pouring petrol on a dumpster fire and that is why the RBA is so worried.
It is crucial that we stop this cycle of reckless spending before it does irreparable harm to the Australian economy and leaves future generations to pick up the pieces.
Lyle Shelton is National Director of the Family First Party. He started his career as a rural journalist before being elected as a member of the Toowoomba City Council and serving the Australian Christian Lobby for 10 years, half of that decade as ACL’s Managing Director. He was a Director and spokesman for the Coalition for Marriage during the 2017 postal survey campaign which resulted in the legal undefinition of marriage. He also blogs here.
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