From Ross Gittens: This is why we don’t need to panic about record budget deficits.
When the Economic Society of Australia polled 50 leading economists recently, 88 per cent of them agreed that governments should provide ongoing budgetary support to boost demand during the economic crisis and recovery, “even if it means a substantial increase in public debt”.
In a speech last week, Lowe said the budget blowout might seem quite a change to people used to low budget deficits and low levels of public debt. “But this is a change that is entirely manageable and affordable and it’s the right thing to do in the national interest,” he said.
Our living standard have crashed, we cannot go out to dinner, travel interstate, travel overseas, look for jobs, open a business, meet our families, have birthdays, or funerals. We can sit home and watch Netflix or read a book. And the supermarkets are open and most things are still there (except Coon cheese). Meanwhile governments are printing up lots of currency for us to spend.
Mr Cheerful also adds in this:
The pandemic will be working to keep the economy down until an effective vaccine is widely available worldwide, which may be several years way.
As for political freedom, what would he or any other of our motley crew of economists know about that?