Are we overstimulated?

The news yesterday that the headline rate of GDP rose by 0.9% in the December quarter and 2.7% in annual terms has stirred the nation's economic dries into action with loud calls for the immediate garroting of government spending. But it's an election year, and the chance of that happening in real terms is receding by the day -- while spending on pink batts has dwindled, the media set pieces and spending announcements, like yesterday's $15 billion health reform package, will be repeated again and again as the poll gets closer.