Andrew Bolt: Pandemic wipes away all fiscal care

Either the virus has changed the way we thought the world worked, or it’s blinded us to the reality of monster debt that will one day smack us in the face.

Coronavirus has given us the most amazingly wonderful world. Debt is suddenly no longer a problem.

Nor are other things we used to worry about.

Inflation? Dead forever.

Needing to save? Waste of time.

Big government? It’s your friend!

Working for yourself? Ha ha ha.

So here we are. Either the virus has completely changed the way we thought the world worked, or it’s blinded us to a reality that will one day smack us in the face. Again.

As always, when we now look for symptoms of modern mania, we look at Victoria.

Its budget this week triples the state’s net debt in just three years to $155 billion, thanks to the most massive spending spree in its history.

In comparison, NSW – a bigger state – thinks $104 billion in debt is positively responsible.

Premier Daniel Andrews delivered Victorians a budget that tripled the state’s net debt in just three years to $155 billion.

Debt like that – on top of the federal government’s planned net debt of $966 billion – no longer matters, we’re told by politicians who love this excuse to play Santa Claus.

In fact, it’s responsible to rack up monster debt. It’s about “stimulus” and “creating jobs” to repair what they wrecked with their virus bans.

And debt like that doesn’t matter much while interest rates are so very low.

And it doesn’t. Not if you think inflation is gone forever, or at least for many years.

Because if ever it does rise, and interest rates rise with it, that “free money” becomes hugely expensive.

But who cares about tomorrow?

In fact, while interest rates are this low, why bother saving for your retirement and trying to live off the interest on your deposits?

That was once thought virtuous. Now, with these rates, it means living off peanuts.

No, now we must look to government instead, for pensions, for handouts, for lots of free stuff, and especially for jobs.

Forget worrying that government is too powerful.

Take Victoria again: it will spend 21 per cent more on public servants’ wages over the next four years.

So why work for yourself? Think your own earnings will rise 21 per cent? Think the states won’t pull another stunt like South Australia’s and close your business for a week – ruin your perishable stock – on some fake scare?

No, the world has completely changed with this virus.

All those old worries no longer count. The only worry now is that they one day might.

Originally published as Andrew Bolt: Pandemic wipes away all fiscal care