Agree most of the debt problem is a fall in Commonwealth tax revenues caused by lower mineral prices and the previous government having to stimulate the economy post GFC...

My main concern is that if the Libs pull too much money out of the economy via their cuts it could push Australia close to a recession..

One good thing about giving walfare to the less fortunate is that they will spend every cent thus indirectly stimulating our economy.

What is the real cost of a government handout of say $1 as only the $1 is measured and not the benefit that $1 generates in other areas which will include some revenue back to the government.

Is the real cost of that $1 to the government $1 or something closer to 10 cents after that money is spent and respent throughout the economy??

Now the Libs came in promising an infrastructure boom but as yet I can see little evidence of this happening.

There has certainly been a lay-off boom since they came to power and phase two will be their effort to drive down wages.

All this means under the Libs, if they get their way, we will be working for less and paying more for government services.

Again my concern would be the more spending power is reduced the greater the chance of a recession.

I think the Libs take,if in power,during the GFC was to let business fail but that strategy could very well have presented a situation worse than what we have now debt wise.

Either way our future lifestyle seems certain to be under downward pressure..

Regarding the phone-spy issues I thought we were just covering for the US NSA there.

The Snowden revelations of NSA operations certainly put the US government in damage control and has cost US multinational business billions..