Joe Hockey warns of spending crisis hitting household budgets
Former treasurer Joe Hockey predicts rising government spending will become a massive household cost problem for Australians.
Just days before the RBA's next rate decision, former treasurer Joe Hockey warned. Government overspending will become a massive problem for Australian households.
Hockey was treasurer under Abbott. Hockey created one of this century's most unpopular budgets in 2014.
Hockey says a major economic downturn is needed now to force spending cuts he believes necessary. Hockey told the 7NEWS podcast that governments can't keep spending at current levels.
'When I delivered a tough budget in 2014, government expenditure was less, government tax was less, and the public service was 50,000 people smaller than it is today,' he said. Hockey also warned that inflation is now 'locked in'.
The situation looks like the late 1980s because of too much government spending. His warning matches growing concerns from economists about a possible recession.
Why it mattersIf government spending leads to a bigger economic downturn, Australians could face higher unemployment and reduced public services.
AustraliaThe federal government may need to cut spending and services to avoid an economic crisis, which could affect job security and public sector budgets.
Corroborated by7news.com.au
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