Howard debt buggered economy

AdelaideNow... Howard debt buggered economy: Hawke: "During that period, he said, unemployment reached 11 per cent, inflation 11 per cent and the Budget deficit $9.6bn – or $40bn in today's terms."

Well, yes, the interest rates on mortgages during Mr. Howard's time in the treasury became astronomical. Our current budget is run on credit. Overseas debt, overseas borrowing, large mortgages and high credit debts. The economy has been "stimulated" but if you ran your household on high credit you would have to be a remarkable financial whizz to get yourself over it. No one recommends you carry heavy debt and most people advise you to invest in assets. It's a gamble. It is about shifting money but while we are on a global economy it will be very difficult for us to control it the same as when people run themselves into debt without finding ways of getting a really solid income stream in their personal lives. Our primary income through farming has taken a hit through the drought. We have not trained people and invested in education and we have neglected transport and health. All of that has to be addressed. It's just about looking after ourselves. People know a lot more about financial things these days and have a better idea of what things mean. Whoever manages our economy has to beef up our income and probably get us to slow down a bit in terms of spending so we pay of our mortgages and secure our homes. I just look at it as housekeeping on a grander scale and I have heard far more expert people discuss this and they need to. In that sense it's good because we can't just ignore it and we do have to understand some of the management practices.