They're back

Hi Evand

Not sure if you are having a go at me but perhaps you don't recall the $10B deficit and $96B debt we used to have. Interest payments used to be a $8B+ drag on the economy.

I am not sure that these are the economic times to be ramping up ones debt. Not to mention the stimulatory and inflationary aspects.

Cheers

Shane
 
This is not Keynesian economics. We are not in a recession. And I'm getting very wary of preemptive economic strikes - they are getting in the way of market discipline.

And on the same morning there is a call from the Productivity Commissioner for the federal government to fund mat leave. It doesn't take a genius to figure out to figure that there is a clear risk of the government borrowing to fund middle class welfare. Which really will put us in financial trouble ten years from now.

If as individuals we can learn to live within our means - why can't we figure out how to do it as a nation.
 
boomtown said:
If as individuals we can learn to live within our means - why can't we figure out how to do it as a nation.
Click to expand...

What do you mean? We have some of the highest private household debt in the world.

These actions were just the thing Glenn Stevens was talking about in his latest speech.
 
Jeez they lose one state election and the $$$ start getting thrown around.

I guess the benefits are:
* new investment opportunities that align with infrastructure changes
* the risk of recession based unemployment is reduced, capping the low end of property prices
* better public infrastructure, hopefully focussed on public transport and medium density housing rather than extending the boundaries of our cities

The negatives would have to be though:
* potential inflation caused by lack of skilled workers, lifting wages and reducing the chance of interest rate cuts
* putting money on the national credit card, which will put pressure on increases in tax at a time when a major tax review is taking place (there goes my dream of removal of stamp duty)

What have I missed?
 
the libs will sort it out in a couple of years, til then just suck it up. In WA the new govt is having an OMG moment in going thru the books... projects being cancelled and cut backs announced. Particularly as this huge stuff up with Inpex comes to light - which apparanlty the Inpex management advised to labor before the election but labor neglected to tell the public
 
So, is the argument with how it is being financed or the infrastructure being proposed?

Broad interest groups (from unions to business) have expressed the desire to have additional spending on infrastucture.

If we had the same level of government debt aversion that seems to apply today, what would have happened to all those infrastructure projects over 100 years ago at Federation.

Its funny though, the government can't have any debt, but households and companies can? :confused: Isn't spending money on infrastucture analagous to an investor borrowing monet to invest in shares/business/property? You are investing in expanding future economic capabilities of country, an investor does this for themself.


I don't have sufficient expertise to make any judgement calls about the possible funding models although some of it is being funded from the Future Fund ie current and future surpluses.

Whilst the funding is important I admit, surely the choice of projects is more vital
 
I don't agree that paid maternity leave is middleclassed welfare - the baby bonus is. Staying home with your children is a choice , one that must be looked at depending on one's personal situation. The problem is that the women that the government wants to have babies (not bogan's on child number 5 - 6 who are never going to work) won't consider it unless the dollars add up.

Bring on paid maternity leave - loose the baby bonus...
 
plusnq said:
Fantastic. Times are uncertain....we actually have a surplus and room to move on interest rates to stimulate the economy if we need to and we go back to the future

http://www.news.com.au/business/story/0,27753,24417304-462,00.html

Cheers

Shane
Click to expand...

Yeah, because spending money on infrastucture is such a waste isn't it?

What good does health and education do a country anyway? :rolleyes:

Let me guess, yet another thread opportunity for Labor bashing? It's funny how politics makes people think that there are such differences between the current political parties. It's all such a joke really. I guess you've gotta look on the funny side of it all. :)
 
All debt needs to be paid for....gee whiz anyone remember subprime????? Someone always pays. Last time someone had the great idea of deficit spending we had a budget deficit of $10B and a debt of
$96 B without a commodity boom in sight to help pay for it.

I have nothing against upgrading our infrastructure but I do have a real grievance against those politicians who tell us they know best and will spend our money on pet projects rather than looking past the next election cycle. Where is our integrated transport system that can run on low liquid fuel availability? We have most of our population on the coast so an integrated shipping and rail system could supply most of the populace fairly easily. We are a very lucky country being a net energy and food exporter, however that luck seems to make our politicians on both sides of politics even dumber than average because they don't have to address the real issues

There are real economic and social issues facing us as a result of peak oil. Instead of addressing those issues we want to lead the world with global warming carbon reductions. A noble idea but very costly economically and one that will be dwarfed in significance by the effect of peak oil. And which will arrive first ??

We need to develop a cohesive and comprehensive plan to minimise the effects. I'll bet that peak oil solves a lot of global warming issues long before a carbon trading scheme does!

But instead we'll add more lanes to roads, build more tunnels, develop carbon trading schemes, etc etc etc

Cheers

Shane
 
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