With any luck, the question of another stimulus package will never arise. But if it does, it’ll be the ideological equivalent of lifting up a rock to find out what crawls beneath.
Economic stimulus package
Why the US requires one more cash injection
The US economy desperately needs another stimulus package, declares Laura Tyson. Homes and businesses are desperately saving, unemployment benefits are lacking and more infrastructure projects — and jobs — are required.
Former Treasury Secretary rallies against second US stimulus
Former Treasury Secretary Bob Rubin has publicly argued against further stimulus to revive the American economy. Rubin is a contentious figure, praised for generating economic growth and criticized for introducing deregulation that helped cause the current crisis.
Memo to Obama: stop spending!
Rallying against legions of economists in favour of government stimulus packages, Novel laureate economist Vernon L. Smith pleads the White House to stop spending, arguing the problem behind the GFC has been touted as the solution.
How Swan let Rudd down
Treasurer Wayne Swan has to take some blame for the poor salesmanship of the Rudd government financial credibility and the actions it took to avoid the GFC.
Colless: The cost of jobs at any price
Jobs, jobs, jobs: it’s been Rudd’s mantra ever since the GFC hit and it explains the insulation debacle and the BER scheme. Except its an unrealistic and phoney concept, writes Malcolm Colless.
Miracle economy or Australia on life support?
Daily Media Wrap: National accounts released yesterday show Australia’s economy grew by 0.5% in the first three months of the year. Is the Rudd government’s love of stimulus packages to thank?
Berg: The fudged Budget figures
Wayne Swan claimed the economic stimulus package saved the Australian economy, with a clever graph tucked inside the Budget showing exactly that. Except, the figures were hand picked to give the answer Wayne wanted, writes Chris Berg.
The most important chart in the budget
Tucked away in Budget Paper Number 1 is a fascinating little chart showing the most politically important piece of data in the entire budget: justifying the stimulus package and giving likely scenarios for if it didn’t exist. Possum Comitatus investigates.
Stutchbury: Julia’s past her use-by
There’s a lazy $3 billion being wasted on the BER program, which would be better spent clinching Rudd’s hospital takeover deal. We need to halt Julia’s BER plan before there’s no money left, writes Michael Stutchbury.
Ask the economists: are we overstimulated?
Crikey asked a group of leading economic hard heads whether it was finally time to wind back the stimulus in light of yesterday’s growth number and the RBA’s decision on Tuesday to hike interest rates.
It’s not about how much they spend, it’s what they spend it on
It’s typical Labor government stuff at the moment: Labor had a big cash splash to avert the GFC and now the Coalition are blasting their ‘spiralling debt’. But how should the government balance spending with saving? asks Brian Toohey.
Gittins: Rudd was too good at saving us
Kevin Rudd and Wayne Swan successfully managed us out of an economic crisis with their stimulus package. But by averting a recession, the public has no idea how close we were to disaster and are quick to turn, writes Ross Gittins.
Barnaby Joyce: How Labor threw all our money away
Rudd’s economic stimulus package brought us no major infrastructure projects, economic blow outs and failed schemes. Labor partied hard and now we’re stuck suffering the debt hangover, says Barnaby Joyce.
Unemployment falls as stimulus is withdrawn
Unemployment has plummeted — a small reminder that, for all its problems this week, the Government has got the big picture right.
graph pr0n Bailouts vs. Stimulus vs. GDP
A great data visualisation from the Harvard Business Review showing how large a percentage of their GDP different countries are spending on bailouts and stimulus packages in the wake of the GFC.
Albrechtsen: Our PM has no balls
The people love him, but as Kevin Rudd done anything of great substance as PM? Instead, he avoids making difficult decisions — from the ETS to the stimulus package — to help ensure his popularity, writes Janet Albrechtsen.
Kelly: The power behind Julia, the people’s princess
Deputy PM Julia Gillard’s image has moved from leftie Work Choice demolisher to capable and popular Acting PM. Can her so-called Education Revolution work to solidify her policy making skills? asks Paul Kelly.
Political snippets: A tick for the Treasurer
Latest figures from the ABS show that Treasurer Wayne Swan got it right by refusing to cut down on the stimulus package three months ago. Plus, a second airport for Sydney? Ha!
Buoyant housing sector further vindicates the Reserve Bank
Today’s housing data confirms the RBA got its interest rate timing right. But the trick will be sustaining the surge in housing construction.
Treasury busts some stimulus myths
The GFC might have been an unusual crisis compared to previous recessions, but fiscal stimulus is not as poor an option for such crises as we’ve been led to think. Even the Treasury agrees the government didn’t spend too much.
PIGS might fly when it comes to public debt
Rising public debt is a key challenges facing world economies, with many countries with debt to GDP ratios over 100%. And it’s the PIGS (Portugal, Ireland, Greece and Spain) who are at the most risk, explains Mark Crosby.
Kelly: How next year will unfold for Wayne and Kevin
Avoiding a recession has become both a gift and a burden to the Rudd government, writes Paul Kelly. Expect a battle between managing the economy recovery and spending on big ticket election issues — climate change, health and households. Can Swan reign in spending?
Hartcher: Is Swan the anti-Keating?
Wayne Swan is acting a lot more modest over the Australian economy’s GFC rebound than Paul “the recession we had to have” Keating, writes Peter Hartcher. But it’s thanks to Keating and Peter Costello that we avoided further trouble
