A slow day in DC, our man in Washington has been reduced to recycling Australian news on the failure of Rudd’s spending spree.
I actually gave my assessment of the plan back in 2010, and I even provided my highly sophisticated analysis at no charge.
The Treasury-commissioned report, by contrast, presumably wasn’t free. The taxpayers of Australia probably coughed up tens of thousands of dollars for the study.
But this is a rare case where they may benefit, at least if policy makers read the findings and draw the appropriate conclusions.
From his Australian source.
The former Labor government’s $100 billion stimulus package during the GFC has been slammed in a scathing new Treasury-commissioned report, which argues the cash splash actually weakened the economy and damaged local industry by overvaluing the exchange rate.
The report, authored by economist Tony Makin from Griffith University, says the Rudd government’s fiscal stimulus was “unnecessarily large” and “misconceived because it emphasised transfers, unproductive expenditure such as school halls and pink batts rather than tax relief and/or supply side reform”.
The latter occurred in New Zealand, where “marginal income tax rates were reduced, infrastructure was improved and the regulatory burden on business was lowered”.