Feb 17, 2010

We’re not out of the woods … yet

With the stimulus packages fading, it's not at all clear that the economy is going to spring back to normal growth. Good luck framing the next budget.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

The economic debate is swinging and leaving politicians behind — on both sides, but primarily the coalition.

The euphoria that Australia has avoided a recession is now giving way to the realisation that as the Government’s stimulus withdraws, there are real questions about just how strong the private-sector growth needed to replace it is.

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12 thoughts on “We’re not out of the woods … yet

  1. David Sanderson

    And good luck trying to claim that the stimulus was never needed and should be entirely withdrawn now.

    Are you feeling lucky Tony? Huh, punk?

  2. Pete from Sydney

    “There’s a good long piece by Laura Tingle today (please don’t ask me for a link — go complain to Fairfax)”…..or you could pay for it…like we’re paying to read you right Guy?

  3. David Sanderson

    Who guy? Guy who?

  4. Most Peculiar Mama

    Why is Gail Kelly so convinced we are?

    And Greece’s economic meltdown has nothing to do with the GFC and everything to do with having to still pay the bills 14 YEARS after its engorged Limpic sportsfest in 1996 left it broke.

    George Papandreou should send One Anchovy Sandwich the bill.

    Didn’t Montreal teach the world anything?

  5. David Sanderson

    Greece’s problems are caused by chronic misgovernment by both the conservatives and the socialists, both of which are dynastic parties. The Olympics are only a small part of that overall failure.However, that chronic failure was brought to a head by the GFC.

    It takes a peculiar kind of idiocy to deny the significance of the GFC. Some on the conservative side have no end of that kind of idiocy.

  6. Most Peculiar Mama

    “…It takes a peculiar kind of idiocy to deny the significance of the GFC. Some on the conservative side have no end of that kind of idiocy…”

    Thank God you’re not an economist.

  7. Poseidon Burke

    So the rush to debt financed stimulus spending without cost benefit consideration proves to be both unsustainable (unless we want more debt) and probably ineffective for avoding recession in the medium term? Sounds like a dumb idea got dumber. How about spending money to achieve substantial structural gains to national productivity?

    In response to David Sanderson (2:07) I say the stimulus as deployed was ill advised it was only at best a short term fix and it didnt deliver us sustainable advantages. A strategic resposne would have been to say the GFC presents an opportunity to furthe reform the Australian economy. Instead we have cash handouts and deadly insulation .

  8. John Bennetts

    MPM: And are you implying that you are an economist? Or, perhaps, a God? Please try harder to add value to the threads which you infect.

  9. John Bennetts

    Infect?? try “infest”.

  10. Peter Fuller

    While it’s questionable if MPM is an economist s/he doesn’t have much of a grip on Olympic history. Athens was 2004, Atlanta 1996.

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