Sinking businesses expose the government’s economic woes

There should be no surprise that the number of businesses suffering from insolvency is at a record level following the government’s harsh industrial relations legislation, in an economy that has zero productivity gains and difficult wage decisions, with inflation bringing with it high interest rates and insurance costs that many businesses have had to walk away from (“Real world: ‘Jim, we’re in bad nick’ ”, 18/12).

In addition, the government continues to spend taxpayers’ money at record levels, making it unlikely that the Reserve Bank of Australia can consider rate relief. Many small businesses are looking forward to the election in the hope that the next government will appreciate the role they play in supporting a strong and vibrant economy, hopefully with ministers who have had business and investment experience to guide them and free up the labour market once again.

David Gray, Peppermint Grove, WA

The decline in living standards following the country’s reckless rush into renewable energy was predicted by many commentators years ago, so the current hardship faced by millions of Australians comes as no surprise.

Once you replace reliable 24/7 power with intermittent, weather-dependent renewables, the energy system is in constant catch-up mode, demanding a transfer of resources away from schools, hospitals, housing, roads and other essential areas towards more transmission, storage, back-up, subsidies and a vast bureaucracy overseeing it all.

Ron Hobba, Camberwell, Vic

Whatever our federal government is doing with taxpayers’ money isn’t working.

Jim Chalmers’ “unavoidable spending” includes the $5bn a year in extra salary expense for the additional 26,000 public servants employed since Labor came to power.

While the brickbats will be deservedly aimed at the Prime Minister and the Treasurer, the Australian public also shoulders the responsibility. A significant factor in the increasing size of government bureaucracy is our frequent calls for the government to fix an ever-increasing list of problems. The predictable government response is to make a spending announcement to appease us.

This inevitably is followed by new legislation that in turn requires more bureaucrats to design, deliver and monitor the ensuing regulations. The result is a terminal loop of increasing government involvement in our lives and a reduction in effective delivery of essential public services.

Jacqui Alder, Canning Vale, WA

We saw it in Queensland, it’s in neon lights in Victoria and now the federal government continues to demonstrate that it, like its state Labor affiliates, cannot effectively manage an economy.

Jim Chalmers seems blind to the relationship between bad policies, excessive spending, unsustainable borrowing, increased taxes, high inflation and soaring energy prices. All of this contributes to a lowering of our living standards. But instead of a fiscal rethink, the Treasurer, with fingers crossed, is doubling down and seemingly trying to spend his way into a positive return of any sort. Nonetheless, the increasing number of businesses going to the wall as a direct result of the above should be a clear barometer of the state of the national economy for those who would care to look.

Tom Moylan, Dudley Park, WA

It’s hard to decide who will win the spin doctor award of the year. With Jim Chalmers trying to explain 26,000 businesses in insolvency, and 930,000 Australians relying on jobless welfare payments while suffering from out-of-control cost of living, he is neck and neck with Climate Change and Energy Minister Chris Bowen’s bizarre excuses for his renewables fiasco.

Ross McDonald, Gordon, NSW

It is likely the Treasurer will realise that he can’t get away with continually blaming the Morrison government for his current budget difficulties. Perhaps he’ll move on to blame the previous Howard government next, just as long as everyone looks away from the indiscriminate spending of the current government.

No mention is ever made that these same people strongly urged the Morrison government to spend more during Covid. Best not to dwell on such inconvenient facts.

Brian Barker, Bulimba, Qld