So we did borrow, we borrowed to support employment, that’s the reason unemployment is so low in this country.
Lenore Taylor and David Uren
It is the opportunity cost – the things that cannot be accomplished by either this government or the next – that weighs heaviest as a result of the government’s spending more than was needed. Had the economy behaved anything like Treasury’s forecasts for it, no-one would have begrudged the money spent. But now $75 billion has gone, with a negligible addition to Australia’s productive capacity. The debt must be serviced and in due course paid back. In the context of a $1 trillion economy, it is not a crippling burden, but there is depressingly little to show for it.
Are you people really that stupid.Money was going to be borrowed anyway.
without the stimulus ewe would have had large deficits for longer because of a weak economy and a high unemployment rate that always takes time to reduce.
The opportunity costs is accept a recession or prevent one.
Catallaxian crackpots simply love recessions.
hey Sinkers why not put up one of your quotes from last years budget .
you know the ones that say the deficit would be higher, deficit higher , unemployment higher etc
Don’t be modest about you have one of the worst records on predicting budgets
Butterfield, Bloomfeld % Bishop
26 Jul 10 at 3:46 pm
without the stimulus ewe would have had large deficits for longer
er, why would you have more deficit if the government borrowed less?
daddy dave
26 Jul 10 at 3:53 pm
Taylor and Uren make the usual mistake of thinking in terms of the economy being $1 trillion when in fact they need to be looking at it from the context of government receipts which is around $350 billion or so.
The entire $1 trillion does not belong to the government.
So unless they rip off the private sector, which of course they’re trying to do with the My-fair-share tax the $75 billion is going to have to be repaid using tax dollars, which means less spending for other areas, not that is government worries about that too much.
Homer, you clown. Go away.
JC
26 Jul 10 at 3:53 pm
So the magnitude of the deficit was exactly right for saving us from depression Homes? there couldn’t have been more efficient ways of doing it?
do you even know what a cost benefit analysis is?
jtfsoon
26 Jul 10 at 4:04 pm
Forrest
go buy more Italian bonds
our monet ary police was impotent and with the Leyland brothers collapsionng it would have been 1928 all over again!!
sinkers is so accccured that when he gives police advice they turn out like Lithuanians and Letts!
perhaps he could simply learnt to red or visit Poland!!
>>>
End Homer channeling
jtfsoon
26 Jul 10 at 4:07 pm
only catallaxians would believe the $74b.
They have made a typical sinkers mistake in calculating the figure.
Staman go away and examine the baltic counties and then come back and try and say something sensible in that is possible.
Catallaxy is living proof of Jason Reifler’s thesis.
Butterfield, Bloomfeld % Bishop
26 Jul 10 at 4:08 pm
Homer – The opportunity costs is accept a recession
Recessions can’t be avoided forever. I think the question is exactly what kind of recession were we in for if the govt had not done anything. Would we have ended up like the US despite lacking the credit and structural problems they have? Are we still actually waiting for our bubble to burst?
And whatever your position you have to agree that there was a lot of waste in the spending. It could’ve been spent better and probably would’ve if Rudd hadn’t done stupid things like lock Lindsay Tanner out of the room.
Or was that Swan? Somehow I think it was Swan. Maybe he didn’t want Tanner to know where the cash was going.
Adrien
26 Jul 10 at 4:09 pm
Staman go away and examine the baltic counties
Homer
you’re not going to try and seize the baltic on behalf of Der Fuhrer are you?
jtfsoon
26 Jul 10 at 4:10 pm
Homer:
Are you playing risk?
There was a great Seinfeld skit when Kramer and Nooman were playing risk on the subway.
Did you lift this Baltic crap out of Seinfeld, Homes, because you’ve been doing a lot of that (lifting) recently.
Homer models himself on Nooman now.
http://www.youtube.com/watch?v=fzLtF_PxbYw
JC
26 Jul 10 at 4:26 pm