Growing Debt and Energy Vandalism

It’s a truth which should be universally acknowledged. Governments build up public debt in recessionary times when interest rates are low. As times improve, interest rates rise and the overhang of public debt becomes more and more burdensome. In turn, this makes it harder for governments to balance budgets and set about reducing debt. But it has to be done or the next economic downturn builds debts upon debts and failed statehood awaits.

This universal truth is why it’s far better for governments to change from Labor to Liberal during the onset of better times rather than the other way around. For example, Howard after Keating. Abbott, Turnbull and Morrison after Rudd and Gillard. Labour governments find it extremely difficult to cut spending. Their whole strategy is built around buying votes by spending taxpayers’ money they don’t have. It’s in their DNA. Thatcher nailed it. Of course, they’re good at taxing. But then that dampens development and growth which, in…