Comments on: Kevin Rudd And Wayne Swan = Billion Dollar Debt

By: BS Artist

BS Artist — Fri, 22 May 2009 23:46:36 +0000

Perhaps not but you can prove that what they did do did not have the required effect, and therefore it was a failure and a waste of money. Money that could have been used to stimulate the economy in a more productive way.

By: GregR

GregR — Fri, 22 May 2009 16:06:06 +0000

But time hasn't and can't prove because the premise is unprovable. You can't prove the contrary, that if it wasn't done, thee economy would be even worst than it currently is. This means that I can plausibly argue the exact opposite from what you are saying, that is without the stimulus we would all be on the streets eating catfood. On the preponderance it was better to do something rather than do nothing. GregRs last blog post..Weta Podcast: Richard Taylor and Shane Rangi

By: BS Artist

BS Artist — Fri, 22 May 2009 13:17:26 +0000

But time itself has proven that I was right. From the first day that they stated they were giving everyone $950 dollars to stimulate the economy I said it would not work and I was right. The majority of people either put it into savings, because of the scare mongering, or they put it towards a loan or credit card debt.

By: GregR

GregR — Fri, 22 May 2009 11:23:52 +0000

You can go to any western nation and the argument will be the same (except for the amounts). I am in Canada at the moment, same thing, replace Kevin Rudd = Stephen Harper, Kevin Rudd = John Keys, Kevin Rudd = Gordon Brown. The problem with your assertion Sire is that it is unprovable, does deficit spending work or not work is up in the air, in exactly the same way as whether or not tax-cuts stimulate spending. We just don't know, but... what I do know is that in Canberra there are a group of basically honest people trying to make the best of a difficult situation. GregRs last blog post..Weta Podcast: Richard Taylor and Shane Rangi

By: BS Artist

BS Artist — Sun, 17 May 2009 01:15:50 +0000

At least you guys have a bigger tax pool, but yes you’re right, we’re both going to be facing tough times and all we can hope is that our respective governments make the right decisions from now on.

By: eyewriter

eyewriter — Sun, 17 May 2009 00:34:51 +0000

Just be grateful you are not picking up the tab for Obama. The US is going to be in debt for so long my home will be an archaeological site when it’s paid. If it ever gets paid.

By: Sire

Sire — Wed, 13 May 2009 06:49:00 +0000

I'm not so sure, after all Turnbull did say that he would not have used the the portion of the stimulus package that gave away money and that alone would mean we would be $22 billion odd dollars better off. Sires last blog post..Securing Your WordPress Blog Against Hackers

By: Royce Christian

Royce Christian — Wed, 13 May 2009 06:33:00 +0000

“That’s exactly my point, so how could the Government not see this?”

Because the government didn’t want to see it. Politicians don’t get re-elected by standing around and doing nothing, even when that is the best option.

“Perhaps the size of the deficit would not be so great?”

I wouldn’t be so sure. When it doubt politicians of any stripe, run to their economic advisors who are predominately Keynesian. The advisors tell them that deficit spending is inevitable and ‘good’ in a recession as government needs to interfere in order to boost spending, create jobs etc. This involves building more buildings, opening up more services, dropping interest rates to control supply and demand and a whole host of other ideas, including stimulus packages. Unfortunately this means increasing government spending, which needs funding from somewhere, either in the form of loans or increased taxes. And then there’s that added problem that government services are almost, always, badly run. So for us, it’s lose/lose.

Royce Christians last blog post..Our monetary system, explained…

By: BS Artist

BS Artist — Wed, 13 May 2009 05:40:20 +0000

“Well that is hardly their fault. They simply did the only logical thing and not what was demanded of them from on high. In fact, I remember reading about the exact same effect seen throughout America when their government, under Bush, started the first stimulus package. No sane person was going to spend like the government expected, there or here.”

That’s exactly my point, so how could the Government not see this? I also agree that while this may well have happened under a Liberal Government, perhaps the size of the deficit would not be so great?

By: Royce Christian

Royce Christian — Tue, 12 May 2009 13:14:02 +0000

“The thing is I was one of those that received some money in the first stimulus and I like the majority of Aussies used it to pay off debt, thereby not stimulating the economy.”

Well that is hardly their fault. They simply did the only logical thing and not what was demanded of them from on high. In fact, I remember reading about the exact same effect seen throughout America when their government, under Bush, started the first stimulus package. No sane person was going to spend like the government expected, there or here.

“Even so I knew I, and my kids, would be paying for it in the long run by increased taxes. I can’t believe that others can not see the long term effect of this extravagant waste of money.”

Agreed.

What annoys me more is that people are claiming that this wouldn’t have happened under a liberal government. Fact of the matter is that it would have; if not now then further down the track. Both governments, Liberal or Labor, would be more than happy to pay people to dig holes and pay others to fill them in if they thought it would save the economy from recession. And to all intents and purposes, they are.

I’ve even been hearing calls by some to reinstate national service in order to keep the unemployment rate down.

Royce Christians last blog post..Our monetary system, explained…