If things keep going the way they are this will be the outlook for the whole world.

What Is The Real Cause Of Public Debt?

Last month Liberal Party shadow treasurer Joe Hockey made a speech in London, UK.

He claimed that welfare systems are unsustainable with a nod to the current debt crisis in Europe.

He is right to a degree, indulgent welfare programs that are only about giving away something for nothing are unsustainable.

Mr Hockey was taken by some groups to be referring to welfare in general to the point the Liberal Party distanced itself from his speech.

The Liberal Party’s own economic success does actually contradict him. The Liberals ran an economy which had extensive welfare related programs in place.

They ran Australia with budget surpluses and low and decreasing federal debt. They could even afford upper class welfare payments in some areas.

Scaling back on certain indulgences in welfare and changing it to a system which helps people to help themselves is definitely needed. Removing the option of it actually being a lifestyle choice is a move in the right direction.

Unfortunately Mr Hockey has not mentioned the main cause of the debt issues countries such as Europe, Australia and the US have and that’s the reckless spending by irresponsible left leaning governments. They splash out cash with no regard to how it will be paid back.

And when further budgetary issue arise they don’t make the effort to fix them, they borrow more money.

And just to further demonstrate that welfare isn’t the only reason some countries have ruinous debts, in Japan where they don’t have welfare or expensive military commitments the debt is double that of the US.

In Australia thanks to the Australian Labor Party’s efforts to separate people from their money more people are now dependent on welfare than ever before. And thanks to the mess the ALP has made of the Australian economy many people will be dependent on some form of welfare for quite some time to come.

Mr Hockey’s message is a step in the right direction but it isn’t right to blame people on welfare when many politicians have a major sense of entitlement and feel they can spend public money as they see fit.

The post political benefits politicians get are a drain on the public purse. Former Queensland premier Anna Bligh demonstrated that sense of entitlement when she wrote to premier Campbell Newman and asked for more money to be allocated to her benefits.

Never mind she has retired on a pension that is more than twice the average Australian wage, never mind her love of borrowing and spending public money has pushed Queensland to the brink, she thinks she deserves it.

The real message needed is that a nation can help people to help themselves can be sustainable. After all it has been done before. Just don’t look to the Left to do it.

And politicians should practice what they preach. Whether it’s a person on the dole or an ex politician, both are receiving benefits at public expense.

The Editors