Part 9/12:
Despite the clear logic of fiscal discipline and reform, political realities make substantial change difficult. Wild emphasizes that the government’s reluctance to trim expenses and raise taxes stems from a political desire to avoid alienating voters. It’s a continuous cycle where promises are made to avoid unpopular decisions, perpetuating a cycle of debt and deficit.
He further warns that without growing the economy—ideally faster than the current modest 2.25% projections—Australia risks a financial crisis akin to Greece. Increasing GDP to generate more revenue without raising taxes is critical but challenging, especially with minimal growth targets set by policymakers.