Comments on: The reckless stimulus package we didn’t need http://www.crikey.com.au/2008/10/15/the-reckless-stimulus-package-we-didnt-need/ now with extra source Sun, 22 Nov 2009 07:11:56 +1100 http://wordpress.org/?v=2.8.6 hourly 1 By: Graeme L http://www.crikey.com.au/2008/10/15/the-reckless-stimulus-package-we-didnt-need/#comment-15281 Graeme L Thu, 01 Jan 1970 10:00:00 +0000 #comment-15281 Spot-on Mr Mayne! Why would Rudd do such a stupid thing? Because he can. Spot-on Mr Mayne! Why would Rudd do such a stupid thing? Because he can.

]]> By: Mick http://www.crikey.com.au/2008/10/15/the-reckless-stimulus-package-we-didnt-need/#comment-15282 Mick Thu, 01 Jan 1970 10:00:00 +0000 #comment-15282 Thank you Crikey and Stephen Mayne. It is broad ranging, sensible analysis such as this that will keep me subscribing to Crikey.<br /><br />This policy is economic madness. They are essentially trying to encourage Australians to take on more debt at the most uncertain economic times in modern history. How can this end well for anyone?<br /><br />The Baltic Dry Index has crashed recently. That is the main indicator of iron ore and coal shipping. If it continues to fall, Australia's economy is in deep trouble. Thank you Crikey and Stephen Mayne. It is broad ranging, sensible analysis such as this that will keep me subscribing to Crikey.

This policy is economic madness. They are essentially trying to encourage Australians to take on more debt at the most uncertain economic times in modern history. How can this end well for anyone?

The Baltic Dry Index has crashed recently. That is the main indicator of iron ore and coal shipping. If it continues to fall, Australia’s economy is in deep trouble.

]]> By: Kevin Charles Herbert http://www.crikey.com.au/2008/10/15/the-reckless-stimulus-package-we-didnt-need/#comment-15283 Kevin Charles Herbert Thu, 01 Jan 1970 10:00:00 +0000 #comment-15283 Mick#2: what does WWHJD mean? Mick#2: what does WWHJD mean?

]]> By: Robert Molyneux http://www.crikey.com.au/2008/10/15/the-reckless-stimulus-package-we-didnt-need/#comment-15284 Robert Molyneux Thu, 01 Jan 1970 10:00:00 +0000 #comment-15284 First, the surplus is simply the amount of money that we were over-taxed. Give it back so we can reduce the interest we pay to banks by reducing our debt! Alternatively, if we do spend it on goods and services from companies, the GST immediately returns 10% to the ATO. Of the remaining 90%, let's say half goes to PAYE employees - of which about 1/3 goes immediately back to the ATO. Let's say the goods and service providers make a profit before tax of about 25% - of which 1/3 sooner or later goes back to the ATO. Confused? So am I, but the fact is that the money being pumped out of the government's coffers will help to make the world go round, and the nett effect on the budget will be much less than the initial amount. Read J K Galbraith's "The Age of Uncertainty" and the need to keep the money moving. First, the surplus is simply the amount of money that we were over-taxed. Give it back so we can reduce the interest we pay to banks by reducing our debt! Alternatively, if we do spend it on goods and services from companies, the GST immediately returns 10% to the ATO. Of the remaining 90%, let’s say half goes to PAYE employees - of which about 1/3 goes immediately back to the ATO. Let’s say the goods and service providers make a profit before tax of about 25% - of which 1/3 sooner or later goes back to the ATO. Confused? So am I, but the fact is that the money being pumped out of the government’s coffers will help to make the world go round, and the nett effect on the budget will be much less than the initial amount. Read J K Galbraith’s “The Age of Uncertainty” and the need to keep the money moving.

]]> By: Kevin Charles Herbert http://www.crikey.com.au/2008/10/15/the-reckless-stimulus-package-we-didnt-need/#comment-15285 Kevin Charles Herbert Thu, 01 Jan 1970 10:00:00 +0000 #comment-15285 The schoolboy economic analysis by Mick, Michael & Graeme L. do nothing for this discussion. At least Scott & Robert Molyneaux provide the basis for their views, whether you agree with them or not.<br /><br />I sense these naysayers' team lost the last election & they're not EVER going to get used to it. All I can say is ' thank the cosmos' that the coward Howard is not in charge at this time of need for dynamic leadership.<br /><br />As for Stephen Mayne's predictions, we'll wait & see if he's got it right. ...or even half right.<br /><br /><br /><br /> The schoolboy economic analysis by Mick, Michael & Graeme L. do nothing for this discussion. At least Scott & Robert Molyneaux provide the basis for their views, whether you agree with them or not.

I sense these naysayers’ team lost the last election & they’re not EVER going to get used to it. All I can say is ’ thank the cosmos’ that the coward Howard is not in charge at this time of need for dynamic leadership.

As for Stephen Mayne’s predictions, we’ll wait & see if he’s got it right. …or even half right.

]]> By: Simon http://www.crikey.com.au/2008/10/15/the-reckless-stimulus-package-we-didnt-need/#comment-15286 Simon Thu, 01 Jan 1970 10:00:00 +0000 #comment-15286 Simon<br />Good commentary from Mayne..Keith Simon
Good commentary from Mayne..Keith

]]> By: J. Hopper http://www.crikey.com.au/2008/10/15/the-reckless-stimulus-package-we-didnt-need/#comment-15287 J. Hopper Thu, 01 Jan 1970 10:00:00 +0000 #comment-15287 Dear Stephen, I bet you haven't ever been forced onto relying on the "largesse" of welfare, have you? Dear Stephen, I bet you haven’t ever been forced onto relying on the “largesse” of welfare, have you?

]]> By: Lindam http://www.crikey.com.au/2008/10/15/the-reckless-stimulus-package-we-didnt-need/#comment-15288 Lindam Thu, 01 Jan 1970 10:00:00 +0000 #comment-15288 It is another 10 billion dollars of inflation which we don't need at the present time when markets are trying to find their own level. This will just skew the market. A better strategy would be to provide a fair pension (to those who qualify) on a permanent basis. <br /><br />Markets go up and down with a slight upward trend. Everybody has made really good money in the last five years in housing, on stock markets, in art, on wages, and we have been able to buy consumer goods at cheaper and cheaper prices (complements of our trade with China). Why are we complaining when the market stalls for a few months/years to correct? It is another 10 billion dollars of inflation which we don’t need at the present time when markets are trying to find their own level. This will just skew the market. A better strategy would be to provide a fair pension (to those who qualify) on a permanent basis.

Markets go up and down with a slight upward trend. Everybody has made really good money in the last five years in housing, on stock markets, in art, on wages, and we have been able to buy consumer goods at cheaper and cheaper prices (complements of our trade with China). Why are we complaining when the market stalls for a few months/years to correct?

]]> By: Scott http://www.crikey.com.au/2008/10/15/the-reckless-stimulus-package-we-didnt-need/#comment-15289 Scott Thu, 01 Jan 1970 10:00:00 +0000 #comment-15289 I think Stephen is both right and wrong in his assessment here. From what I can see, Kevin Rudd is throwing 10 billion at us in the hope that it will stop the Australian economy from heading into recession.<br />He is right in that Kevin Rudd is moving too quickly. We might be heading to recession regardless of anything he does now. However, there is nothing wrong with Fiscal Policy. It just should happen to stimulate the economy after a down turn, not to prevent one that may or may not occur. While in medicine, prevention is better than cure, sometimes its better to catch the cold and get over it than wait for the killer flu. I think Stephen is both right and wrong in his assessment here. From what I can see, Kevin Rudd is throwing 10 billion at us in the hope that it will stop the Australian economy from heading into recession.
He is right in that Kevin Rudd is moving too quickly. We might be heading to recession regardless of anything he does now. However, there is nothing wrong with Fiscal Policy. It just should happen to stimulate the economy after a down turn, not to prevent one that may or may not occur. While in medicine, prevention is better than cure, sometimes its better to catch the cold and get over it than wait for the killer flu.

]]> By: Michael http://www.crikey.com.au/2008/10/15/the-reckless-stimulus-package-we-didnt-need/#comment-15290 Michael Thu, 01 Jan 1970 10:00:00 +0000 #comment-15290 Yep, grade A bullshit. Extending the first home buyers grant - wtf?<br /><br />Okay, pernsioners need a top-up. But surely we also REALLY need to spend on infrastructre - staff that will actually ensure some kind of future?<br /><br />Nah, house prices ALWAYS go up. Yep, grade A bullshit. Extending the first home buyers grant - wtf?

Okay, pernsioners need a top-up. But surely we also REALLY need to spend on infrastructre - staff that will actually ensure some kind of future?

Nah, house prices ALWAYS go up.

]]> By: Mick http://www.crikey.com.au/2008/10/15/the-reckless-stimulus-package-we-didnt-need/#comment-15291 Mick Thu, 01 Jan 1970 10:00:00 +0000 #comment-15291 Sorry Kevin Charles Herbert, I'm a Labor voter, always have been. Kevin Rudd's policies this time are a case of 'WWJHD?' Sorry Kevin Charles Herbert, I’m a Labor voter, always have been. Kevin Rudd’s policies this time are a case of ‘WWJHD?’

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