The financial crisis ended in 2009. What we have had since is a Keynesian stimulus crisis. It is this tremendous level of public sector spending on non-value-adding goods and services that has sunk our economies across the world. If anyone still thinks that C+I+G is the basis for good economic policy advice, they ought to have their heads read.
So The Australian today adds the latest installment on our own deteriorating economic circumstances. Here is the first para:
THE high Australian dollar and a slowdown in the non-mining sectors of the economy have claimed their first mass casualties, with Qantas and steelmaker OneSteel announcing job cuts and banking giant Westpac eyeing cutbacks.
Now this is truly terrifying. If the rollback of activity really hits some kind of high level, the 5.5% predicted for the end of the year will be a best case outcome.
Build a carbon tax onto what is already a crumbling private sector and see where we end up. Our productivity is being wasted at phenomenal rates in valueless public expenditures, destructive forms of taxation and punishing addition to our regulatory environment. In what way is it surprising that things are falling apart.
And then there is Europe. I think I saw a story yesterday that the aggregate growth rate across the EU during the last quarter was 0.2%. The Australian anyway gives the narrative even without the number. The story is bad enough:
Data released last night indicated European economic growth was slowing dramatically and that Germany’s economy, the continent’s powerhouse, had stalled amid the worsening sovereign-debt crisis.
About American there is nothing more to say. Obama’s economic policies are laying waste to the world’s strongest economy.
There will come a time that governments will have to start listening to us critics Keynesian theory and of these idiotic stimulus packages which ought by now to be recognised as proven forms of economic suicide. If they wouldn’t believe it in 2009, it is about time they started paying attention now.