Lets resolve this thing right away while there is still time to push for massive spending cuts in the hope that the push at least will save us the damaging effects of at least a few billions in government spending. You economists on the left and the right. You never want to resolve this matter outright. Lets do it now:
Graeme Bird :
05 Feb 2009 12:46:26pm
This 42 billion dollar wrecking-ball package is an utter disgrace. Not predominantly for Rudd but for the economics profession in Australia on both the right and the left. Moreso for the rightists since they ought to know better.
The spending is EXACTLY the opposite of what ought to be done. The prescription for recessions in economic science is fiscal triage. That is to say massive multi-billion dollar spending cuts.
For recovery we need to, amongst other things, boost business spending up to its previous high and make sure as great a PROPORTION of resources (as allocated via spending) as possible are going into this category.
In GDP business-to-business spending is not counted. So this package is ripping 42 billions of dollars worth of resources from business to business spending and putting it where the spending will be picked up by GDP. This package does not DOES NOT!!!!! increase spending. It merely takes the spending from that category where it can repair the economy and places it into other categories where the spending will not help to repair the economy.
It is simply disgraceful that the economists have not resolved this issue, even to their own satisfaction. And I welcome an open debate with any or all of them to resolve this urgent matter decisively right here while there is still time to turn spending increases into urgent spending cuts.