Economic critics are quick to slam the Government over its spending without considering the many benefits provided to Australian citizens, writes Stephen Koukoulas.
IT’S TIME TO STOP complaining about the rise in government spending and recognise the benefits of having a decent government that provides a vast array of services that the private sector would never think of delivering.
It’s that, or for the whingers about the “size of government” to opt out of the benefits they receive from the government in their day-to-day lives.
You only have a legitimate right to complain about the Government if you have little to no call on the public sector.
In other words, if you demand government spending on defence and your children go to school or get government-subsided medicines, drive on roads or fly, shut your trap.
Here is a very truncated list of services and items that the Government spends money on from the taxes it collects and shows how government spending can help individuals, businesses and society with its spending priorities.
Funding of the schools that your children go to? Education also has the benefit of enhancing productivity and incomes — a national investment, in other words.
Childcare payments so that toddlers are cared for and engage in early education, allowing parents to engage in paid employment.
Then there are the nurses, carers, cleaners and helpers who look after your ageing parents at the cost to the taxpayer. Dignity for older Australians. You’d be a misery guts to argue against this.
What of the police that you would ring in a split second if some lowlife were to rob your house or crash into your car? Twenty-four hours a day, seven days a week. Government spending on law enforcement is something even the anti-government Right-wing nut jobs benefit from.
What of the air traffic controllers, making sure your plane doesn’t crash as you fly back from your European holiday or business trip that will boost economic activity? It is hard to imagine anyone saying the Government cuts corners in air traffic control.
What about the public servants in foreign affairs and trade who fight for the farmers and local businesses smashed by foreign tariffs, dumping and other trade restrictions against Australia? These government employees deserve praise, not abuse.
What of the government financial assistance to the surf lifesaving clubs? Many local MPs fight to get government funding for this vitally important service.
Then there is defence and border protection. Government spending in these areas protects Australia and its citizens, and indeed, there is some discussion that spending in these areas should be yet higher. Maybe the Government could slash defence spending to ramp up the budget surplus and trigger interest rate cuts.
What about if you or your loved one needs health care? Universal Medicare is there for the benefit of all Australians. Do the nutters suggest a move more towards the U.S. health system of user pays and pays full price for many medical services?
All the drugs currently subsidised by the Pharmaceutical Benefits Scheme (PBS) are making people healthier, making them available for work and living longer more fulfilling lives. Isn’t this a fundamental part of what life is about?
In the quest for a budget surplus, maybe the Government could forget about helping the communities impacted by natural disasters, firefighters rescuing people, and the emergency services returning power to impacted businesses and houses. Costly, yes, but surely that is one reason we pay our taxes, because there are no private sector firms that would provide emergency care at no cost.
And let’s not forget about the body that applies the rules and regulations to protect the people from financial rip-offs, unroadworthy cars, poisons being spewed into the rivers, pests being brought into Australia — among many others. Your taxes are at work and decent people would be pleased about this.
As for data on the economy, which ironically provides the data on the number of public servants, helping policymakers work out what needs to be done with policy. Imagine a world without data!
And what about government inspectors who shut down filthy, cockroach-infested restaurants? Thanks to the public servant health inspector helping to stop diners being poisoned.
For Australia’s borders, should we let insects and disease-riddled products enter without biosecurity protection?
From a macroeconomic perspective, what about those public servants who shop or transact with your business? Cutting government spending reduces economic growth, including in the private sector.
With that said, of course, the government sector is far from perfect and must be made as efficient and cost-effective as possible. This is what responsible governments aim to achieve with the administration of spending.
But before dumping a bucket on the growth in the size of the public service, which seems the latest sport of the economic zealots, spare a thought for all the benefits you get from it.
Stephen Koukoulas is an IA columnist and one of Australia’s leading economic visionaries, past Chief Economist of Citibank and Senior Economic Advisor to the Prime Minister.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License
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