Government Versus Household Spending

Interesting how Government react the opposite to the way a household does.  When times are tough household’s tighten the belt make do with the old TV, repair the old fridge not replace it, forget about the extensions, etc.  Government though borrows more money and spends it, big time.  When things improve the household splurges a little, buys a flat screen TV, gets quotes on the new kitchen etc. However with our economy in good shape, one of the best in the world, our new state and local governments are tightening the belt, cutting jobs, asking remaining staff to duplex their photocopying.  Some economists argue this response reversal is necessary. Continued spending by either the public or private sector is necessary to maintain employment.  However in the 2 tier (speed) economy which we are experiencing Government seems to be relying on the mining/resource boom to soak up all the new unemployed and more.  Will a former public servant be keen to swap their desk in Brisbane for a dump truck in Alpha?  Even if they were would they get the job?  If they do, how will FIFO affect family and social life?

It is a responsible action for Government to reduce wasteful expenditure and cut debt, but needs to be careful how it’s done.

Allowing mining/resource companies 100% FIFO workforce, employing and sourcing supplies from overseas is making it tough for that tier of economy not directly involved in mining/resources; the bigger of the 2 tiers.  If this tier of the private sector reduces spending in union with Government (public sector) cut backs, where’s the spending necessary to maintain jobs in retail, services, tourism and construction industries?  Maybe the Newman Government did actually think of this in announcing the ‘cost neutral’ Brisbane North CBD renewal project.  Pity it’s the south east corner that Newman big idea is to be realised.  It should though highlight to the Rockhampton Regional Council to work on its own big ‘cost neutral’ idea for the region.  As just hoping the mining/resource companies are going to stimulate the non mining tier in the local economy or the State/Federal Government will play white knight won’t be enough. The honeymoon is over; let’s see more from the Council than just driving personal agendas.