Give me a break - one of the biggest myths in history that the stimulus package of asian manufactured flat screen TV's kept the economy afloat. Talk to a genuine real economist.
Who do you suggest? One who understands that retail expenditure benefits the economy even if the goods are made overseas? Give me a break indeeed. Try reading Michael Pascoe's piece in the Fairfax press today.
OK - EXPENDITURE benefits the economy and there are many ways to employ this. Both increased public spending and
good governance can improve growth outcomes. There is also evidence of an interaction between government expenditure and governance which suggests that countries with good governance make more effective use of public expenditure Similarly there is evidence of an interaction between good governance and credit suggesting that good
governance is a pre-condition for growth enhancing finance and/or vice versa. Human capital is also found to significantly and positively affect economic growth. All of this means that it isn't just necessarily about SPENDING that provides the positive outcomes, it is how it is managed during and after and in my humble opinion, there were many many things that contributed to Oz's standing during this time and if the surplus had been managed more scientifically and with longer term views in mind rather than just a popularity grab we would have been better off over the longer term. Like the post above - much better ways a good government could have spend the money for an equal or better outcome.
And yes, lets remove the incentive for people to strive to get ahead by increasing taxes for the wealthier, increase small business taxes (small business by the way is a HUGE employer - or it was) and minimise other potential benefits advantages like CGT and FBT. Lets just all give up and go on welfare….oh thats right, its not the governments money......its ours!
But hey, just my informed opinion, i realise not everyone gets it.
The SURPLUS rhetoric that we have been listening to for years came from 2 things in the main, one being Costello's sale of a good chunk of our gold reserves, and the rest from the sale of Telstra.
**We live in a capitalist society as we are all aware, trouble is some think we can all be rich. To get rich one has to capitalise on others, with the others being the poorest. It is a fact that cannot be argued.**