Before we spend the next month dissecting the wrong numbers.
Australia (people, companies, banks and government therein) owes other countries (people, companies, banks and governments thereof) money. This is due to reach over a $1trillion in the next three years.
The Australian government owes the Australian people and other countries a total of $114.2bn. www.wolframalpha.com/input/?i=australia's+national+debt
The government pays Australian super funds, Australian gilt owners and owners overseas an interest payment for this.
Depending on the duration of these government bonds, the government pays different interest rates
www.bloomberg.com/markets/rates-bonds/government-bonds/australia
The interest rate is around 6% about $7bn a year. This works out around $19m a day - about 95c each per day.
So Australia as a nation of 20 million people borrows such that we all pay 95c a day. So when you assess whether they've spent the money well, think about what they've done and whether it is worth 95c today.
Psychology of the adverts.
$19m seems like a lot and $114bn seems like more. Oh dear Gillard is taking the country to the dogs.
whereas, keeping the proportions but making the numbers a bit more understandable
$1.9 seems like not very much compared to $11,400. Two thirds of a latte vs two to three months take home pay for the average aussie
Disclaimed
I can't vote
I don't think governments spend money particularly effectively
I'm not on Gillard's side cos she's a ranga
