Comments on: The fiscal massacre that laid the Rudd agenda to rest

By: Frank Birchall #2

Frank Birchall #2 — Thu, 01 Jan 1970 10:00:00 +0000

I can only infer from John James’ comment on Keynes that he (James) supports the disastrous belt tightening and obsession with balanced budgets that is now widely accepted by economists as the main reason for the intensity and length of the Great Depression. Had central banks and governments known then what they know now, they would have done the opposite, i.e. deliberately undertaken deficit spending to stimulate failing economic activity. Deficits could have been offset by surpluses during subsequent periods of strong growth.

By: Sunil Badami

Sunil Badami — Thu, 01 Jan 1970 10:00:00 +0000

The Opposition doesn’t seem to have anything new to suggest itself - rather, it just bitches about anything the Government does and adds a couple of extra noughts - hardly innovative, inspiring or effective financial management. You wonder why nobody asks Bishop what she’d do. Or rather, what Roger Kerr would do…

By: Frank Birchall

Frank Birchall — Thu, 01 Jan 1970 10:00:00 +0000

Two points: (1) between May and yesterday, the worst global financial crisis since the Great Depression occurred; everyone knows that, so why the shock/horror reaction to the projected decrease in the federal surplus? and (2) Macroeconomics 101 tells us that there is nothing wrong — in fact, there’s a lot right — about government deficits aimed at avoiding or mitigating effects of a recession; J.M. Keynes told us that 70 years ago.

By: davo

davo — Thu, 01 Jan 1970 10:00:00 +0000

So where did it go? Olympic gold medals, lifestyle choices, a 'privatised' health system that did nothing but enrich doctors without even a modicum of improvement in publice health, a regressive tax system that was used for parochial porkbarrelling, and a bunch of jobs for the boys.

F*ck Howard and his cronies. F*c th epublic for believin gthe lies, and hoping that if we crossed our fingers nothing bad would happen. Well, it's happening - and the worst hat will happen is that the books will be readjusted to reflect the true status of the f*cked up Howard years.

donald horne, all is forgiven

By: braindrain

braindrain — Thu, 01 Jan 1970 10:00:00 +0000

Bernard you still don’t get it do you? the COAG agenda was the States/VIC creature not the Commonwealth’s!

By: John James

John James — Thu, 01 Jan 1970 10:00:00 +0000

Wayne Swan’s gazing into the blankness, when asked the inflation rate, was hardly inspiring. I mean, I appreciate that you cannot have all the data necessarily at your finger tips, but these diificult times are as much about that magical word “confidence” as anything else and Swan flicking nervously through the notes in front of himself and then asking for the next question simply reinforces what many have commented on previously.And the inflation figure is basic, really! Watch the government go into overdrive attempting to run ” block” for an embattled treasurer.
Some of the postings above are typical Left spin. Yes, the jobless rate was better than expected, but the employment figures often lag considerably. My profession has me talking to alot of people and people are losing their jobs. A young architect patient of mine has been retrenched after 11 years with his firm and a senior Toyota manager told me he will probably be retrenched in the next month.
And I just love seeing Keynes being quoted so often. It’s like those late night horror movies, ‘Return of the Zombies.’ Just ask the government of Iceland or the USA about the ‘benefits’ of large deficits.

By: Rob Lukin

Rob Lukin — Thu, 01 Jan 1970 10:00:00 +0000

Er, excuse me but after 11 years was it in Liberal Government and allegedly huge surplusses, privatising of stellar public infrustructure and adding the GST to the rake in of monies. Where on earth has it all gone?? Kevin Rudd and Wayne Swan could not have spent the lot in a few months a couple of years perhaps but not months.
So I ask the question, where has the dosh gone??
Or was it ever there, typical smoke and mirrors accounting that has us gullible punters in a mess that we didn’t make.

By: Frederik Lips

Frederik Lips — Thu, 01 Jan 1970 10:00:00 +0000

Well, according to Federal labor’s own Health policy released August last year, there is an estimated $20 Billion lost in fiscal transfers between the States and National government, through shared portfolios. Lets get rid of the federal system (aka the states) so the taxation revenue can be dispersed through one less level of government, and presto we get our $20 Billion surplus back, which can then be spent or invested.

By: Keith Bedford

Keith Bedford — Thu, 01 Jan 1970 10:00:00 +0000

The reaction of anybody in the coalition is to be expected. In their previous period as government they simply spent all the winnings and now they just blame a 12 months in office government for the problems. Mr James is obviously a medico, generally the greediest profession after lawyers and financial people.
What the opposition should be doing is helping not hindering in this emergency which will probably be with us fgor some time. Their smirk and mirors Treasurer did not see the problem coming although the signs were obvious. In the last nearly seventy years I have never seen such a long expansion and it was obvious that the wide boys would rip into it as they allways have done. Subprime loans, no doc loans, finance companies paying above the normal interest and lending out to shaky mates at exornbinate rates, it was obvious that it would all go pear shape but the now opposition did nothing to stop it whilst in power and now want to blame their replacements. God help us if they become the replacement government because they are doing what they allways do, blaming somebody else. I do not blame Swan for not having figures to hand to answer some hacks question, he has enough on his mind on the important things like going to the G20 today.

By: Ray

Ray — Thu, 01 Jan 1970 10:00:00 +0000

Bernard, you forgot to mention the ETS. Is it because implemnetation of an ETS would markedly reduce Australia’s standard of living? Just what we need in a recession! Please don’t insult the voters by referring to Treasury’s modelling on the ETS, given Treasury’sr poor economic forecasting record.

By: Marilyn

Marilyn — Thu, 01 Jan 1970 10:00:00 +0000

Julie Bishop couldn't be bothered to write an essay for a book about the future of the liberal party but thinks she should be treated with credibility by the brainless and breathless media hacks, mostly Murdoch's brainless mob.

Her credibility was shredded after the first lapse into plagiarism, it is utterly gone after the second foray surely.

She is an idiot. And with jobless figures maintaining jobs actually increasing and the only people going broke being the gaming casino mortgage trusts and ABC "learning" then what are people actually whining about?

By: denese

denese — Thu, 01 Jan 1970 10:00:00 +0000

Fielding obviously does not do the shopping. There is hardly anything to buy that is made in Australia.
the last government let most our business re clothes , basic house hold goods go off shore and all so the call centres, It reminds me of Barnaby Joyce’s dig at the pensioners re Chinese goods. As for bishop saying we should keep the surplus the brightest in the country are arguing against this.Surely keeping the country working is the most important thing we can do.And bishop doesn’t know there is a fiscal problem globally of course the budget problems are caused by this Madam Shadow Treasurer. Nothing drastic has happened in Australia yet so what an earth are people moaning about and if it does to a small degree guess what there are lessons to be learned by a society that has become a” we must have it and now society” some lessons are being learned. I do not think any unemployed people down the track would thank the government for keeping the budget in surplus Ms. Bishop.

By: Andrew

Andrew — Thu, 01 Jan 1970 10:00:00 +0000

Well thank heavens that, after a generational boom comprising probably the last increase in economic activity the human race can get away with before the consequences become terminal, we can say that we built some damn fine kitchens, spas and deck conversions. Some would call this a misallocation of resources, indeed some would call it an epic catastophy akin to a cave man missing the annual migration of the carribou because he was too busy bidding up the price of rock art. But no, it was the miracle of the markets and their infinate allocative wisdom. Anyone would have been dazzled, there were no detractors other than socialists and greens, and green socialists (watermelons). Don’t worry, there is always another bubble. I think the next one will be in drinkable water, edible grain or non-radioactive cities. Invest early, avoid the rush.