I interrupt my series on the instability of capitalism for a special report on the serious problem of Australia’s budget deficit. As everyone knows, the world will end tomorrow unless Australia’s government plugs its $12 billion ‘budget black hole’.
And I have proof! After all, we have 40 years of data showing the ratio of the budget deficit (and sometimes surplus) to GDP. Let’s see how the current deficit compares to other years since 1975. And look, it’s one of the worst ever!
Figure 1: Budget position as percent of GDP since 1975
