It seems that the fiscal austerity agenda is morphing into what is probably the real underlying strategy – to demolish or seriously compromise government welfare spending and income security provisions where it benefits individuals. In a Bloomberg Op Ed today (April , 2012) – To Thrive, Euro Countries Must Cut Welfare State – we learn that Europe is “overspending on social welfare” and that benefit programs have to far less generous into the future. This resonates with the foolish intervention overnight from the Australian conservative Treasury spokesperson (one Joe Hockey) who claimed that when they regain power next year (which they will given how hopeless the Labor government has been) they will dismantle our income support system to save the government from running out of money. On the one hand, the level of ignorance about macroeconomic matters displayed by these commentators is stunning. On the other hand, one could easily assume they know exactly what the story is but are choosing to mislead their audiences because if they disclosed their true agenda they might not get the same support. Either way, the attack on the welfare state is misguided and will only worsen the long-run prospects of us all.