Check out the below exchange this morning from our two child care ministers:
No much you can say about the Labour candidate beyond yelling “FAIL”.
Still, I don’t buy the LNP line, either. The implication that child care rebates can rise if the LNP manages money better (ie runs a surplus) doesn’t work if we consider the basic sectoral balances formula of GDP.
In a current account deficit country, as the public sector turns to surplus then the private sector must, by definition, ramp up its borrowing, or the economy will shrink. The LNP candidate is therefore assuming that either we’ll suddenly run current account surpluses for the first time in forty years, which seems about as likely as a good quality election debate, or that private sector borrowing is going to grow like it has in the past, enough in fact, to boost government revenues and child care rebates.
Fat chance.
