Latest / Early Edition with Ryan Bridge / Ryan Bridge: How much does $50 for some families cost the rest of us?

Transcript

Ryan Bridge: How much does $50 for some families cost the rest of us? · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: How much does fifty bucks for some families cost the
• 0:03
  Speaker 1: rest of us. That's the real question we should be
• 0:05
  Speaker 1: asking ourselves this morning. Remember, the government's running a deficit,
• 0:08
  Speaker 1: a structural one. They spend more than they earn in taxes.
• 0:12
  Speaker 1: The up to four hundred million dollars in yesterday's package
• 0:14
  Speaker 1: comes from the operating allowance. That's new money. Government claims
• 0:18
  Speaker 1: this is basically like a checking account, but that's disputed.
• 0:22
  Speaker 1: The Taxpayers Union says, given the fact the books are
• 0:25
  Speaker 1: in the red, new spending is basically funded by borrowing.
• 0:28
  Speaker 1: Therefore it's more like a credit card than a check account.
• 0:31
  Speaker 1: We do have a budget in May where cuts will
• 0:33
  Speaker 1: surely come, but remember the forecasts for the tax take
• 0:37
  Speaker 1: are also dependent on forecasts for growth, and growth is
• 0:41
  Speaker 1: being hit by oil too. That means they won't earn
• 0:43
  Speaker 1: as much as they thought they would. Add to that
• 0:46
  Speaker 1: the fact that borrowing costs are roughly twenty percent higher
• 0:49
  Speaker 1: now than they thought they would be back in December,
• 0:52
  Speaker 1: and the spending starts to look a little shaky. Fifty
• 0:55
  Speaker 1: dollars per family is not the real number we should
• 0:58
  Speaker 1: be talking about this morning. The number but we should
• 1:00
  Speaker 1: be talking about this morning is five six hundred dollars
• 1:04
  Speaker 1: per household. That's roughly how much we are going to
• 1:07
  Speaker 1: spend next year servicing our debt. That is before all
• 1:12
  Speaker 1: of this extra cost. Just think about that. Look around
• 1:15
  Speaker 1: your household, your family. That's five and a half grand
• 1:18
  Speaker 1: a year, just an interest, more than we spend on
• 1:22
  Speaker 1: schooling our kids through primary and secondary. Debt servicing is
• 1:26
  Speaker 1: now the fourth largest line item on the government's books,
• 1:30
  Speaker 1: according to Treasury, The more we spend, the longer it
• 1:33
  Speaker 1: takes till we even start paying down the debt. That magical,
• 1:37
  Speaker 1: mystical date has been pushed out until at least twenty thirty.
• 1:41
  Speaker 1: It's like waiting for Taylor Swift to announce the concert
• 1:44
  Speaker 1: at Eden Park would be amazing. I'd be there, but
• 1:48
  Speaker 1: will it actually ever happen. I'm not saying people don't
• 1:51
  Speaker 1: need petrol money today, but is anyone asking at what cost? Tomorrow?
• 1:57
  Speaker 1: For more from Early Edition with Ryan Bridge some live
• 2:00
  Speaker 1: to news talks. It'd be from five am weekdays, or
• 2:03
  Speaker 1: follow the podcast on iHeartRadio.