Do you support fiscal cut backs for the federal budget? (2 Viewers)

[Sathius005]

Do you support fiscal cut backs for the federal budget?
Source: The Aust
THERE will be no let-up in the spending pressures pushing the budget deeper into deficit for at least four years, analysis by the Parliamentary Budget Office reveals, as a private consulting firm warns that deficits will continue indefinitely in the absence of harsh spending cuts.
The PBO is preparing a report on the forces that are driving government spending higher at a faster rate than the overall economy, highlighting the role of health and welfare spending, which between them account for more than half of the growth in government outlays over the past decade.

 

[newcastle2012]

These cut backs wouldn't even be needed if the media would even portray the facts of the economy straight. I mean who here knew that Australia was the single developed economy to maintain positive growth through the GFC and that Wayne Swan was declared one of the greatest Treasurers in the world due to his performance in terms of the economy. But the media has portrayed the state of the economy as dire (which it is most definitely not) lowering both consumer and business confidence significantly hurting the taxes coming in which is then available to the governments bottom line.

 

[hayleyemma96]

These cut backs wouldn't even be needed if the media would even portray the facts of the economy straight. I mean who here knew that Australia was the single developed economy to maintain positive growth through the GFC and that Wayne Swan was declared one of the greatest Treasurers in the world due to his performance in terms of the economy. But the media has portrayed the state of the economy as dire (which it is most definitely not) lowering both consumer and business confidence significantly hurting the taxes coming in which is then available to the governments bottom line.

THIS!!!!!!'
It's what I have been trying to tell people for years.
Goddamn Rupert Murdoch and his almost dictatorship of the media


Hayley

 

[Quadro]

These cut backs wouldn't even be needed if the media would even portray the facts of the economy straight. I mean who here knew that Australia was the single developed economy to maintain positive growth through the GFC and that Wayne Swan was declared one of the greatest Treasurers in the world due to his performance in terms of the economy. But the media has portrayed the state of the economy as dire (which it is most definitely not) lowering both consumer and business confidence significantly hurting the taxes coming in which is then available to the governments bottom line.

well said

 

[newcastle2012]

Thank you anyway I love economics and hope to do it at University to

 

[Heydosaurus]

Goddamn Rupert Murdoch and his almost dictatorship of the media

This is a load of shit.

 

[dwksyd]

1st priority for us as a nation should be getting our manufacturing industry back with the expected future losses of Holden and potentially qantas....
we need reduced labour costs here, and if that isn't abolishing the minimum wage, it will have to be significant tax cuts- which means fiscal cuts.....I support what is necessary, it might not be pleasant- but it's for our nations future

 

[newcastle2012]

No what we need to do is lure the most advanced technological firms to Australia. Now our wages may be higher but that is representative of a highly skilled workforce and as such we should be moving into high value added goods e.g. computers, programs and other goods and services which is what the other highly developed countries have successfully done while our economy is heavily based on low value added primary goods e.g. low value added manufacturing which we are less competitive at compared with China and India. Tax "evasion" by corporations however needs to be addressed and I don't think tax cuts would be needed for us to remain competitive.

 

[SylviaB]

These cut backs wouldn't even be needed if the media would even portray the facts of the economy straight. I mean who here knew that Australia was the single developed economy to maintain positive growth through the GFC and that Wayne Swan was declared one of the greatest Treasurers in the world due to his performance in terms of the economy. But the media has portrayed the state of the economy as dire (which it is most definitely not) lowering both consumer and business confidence significantly hurting the taxes coming in which is then available to the governments bottom line.

https://www.taxpayers.org.au/factcheck-did-kevin-save-us-from-the-gfc/

 

[newcastle2012]

Exactly the highly liberal media is epitomised through that article. Those topics they try and disprove are true I mean for an example this one. They say that government spending doesn't stimulate an economy. This is dis proven through looking at Germany prior to WW2, Keynesian economics, Australia during the GFC ("cash splash"), Construction of the Harbour Bridge and other major works financed by the government. This all shows that government spending does indeed stimulate an economy. That article is seriously the most biased thing I have ever seen and clearly the person who wrote it had absolutely no clue of how economics works in the slightest.

 

[isildurrrr1]

Exactly the highly liberal media is epitomised through that article. Those topics they try and disprove are true I mean for an example this one. They say that government spending doesn't stimulate an economy. This is dis proven through looking at Germany prior to WW2, Cainsian economics, Australia during the GFC ("cash splash"), Construction of the Harbour Bridge and other major works financed by the government. This all shows that government spending does indeed stimulate an economy. That article is seriously the most biased thing I have ever seen and clearly the person who wrote it had absolutely no clue of how economics works in the slightest.

You mean keynesian economics.

I highly doubt gov spending in aus did jack shit when you consider it was chinese import of Australian resources that helped kept our economy afloat. If you're a fan of keynsian economics, you should know the best way a government can help boost productivity is just direct tax cuts for the masses, where they have more money in their pockets thus able to allocate resources more efficiently.

If stimulus spending did so well why did America go to the shits longer than any country during the great depression? And wars don't bring countries out of a recession either (broken window fallacy), otherwise we'd see a HUGE economic boom due to iraq and afghanistan conflicts. Can a government guide economic policies through innovation to help grow an economy? Sure look at the Asian tigers, but that shit will never ever happen in Australia.

 

[newcastle2012]

I wasn't looking at the spelling.

Anyway through government spending they can create jobs, stimulate sectors of the economy and through the multiplier effect spend their way out of a recession e.g. Germany's amazing revival prior to WW2 through great works like massive highways and such. Germany's revival was not due to war but through great government spending through massive construction and modernization of their industries primarily war orientated industries by increasing aggregate demand for said products.

In Australia the spending did a hell of a lot through the multiplier effect which as money circulates it creates more value within the economy e.g. $1 invested into the economy may raise GDP by $10 in this case the multiplier is equal to 10x. In terms of increasing productivity what good would more goods do in a market if there is no one buying them?

In terms of America they didn't do what Australia did during the GFC they firstly had massive massive debt and when they did spend they were utilizing quantitative easing to make money to spend (not what we did) this only stoked inflation as the American dollar deflated in real value while economic growth stagnated (known as stagflation) as no one wanted the new money as it was "worthless paper" so to speak.

In terms of the great depression the US was spending some money on public works but even Keynes himself said that they weren't spending anywhere near enough to get have a meaningful impact as their low investments weren't making enough jobs to combat the massive 25% unemployment rate.

Asia anyway is different to Australia as the majority of them have low wages and are nowhere near as developed as Australia and as such concentrate on different policies and goods for production e.g. making computer programs in China wouldn't be nearly as effective as making them in the US as the US has significantly higher quality workers than China however basic manufacturing would be better for China as they have low wages and it is not complex or hard to do.

 

[isildurrrr1]

Asia anyway is different to Australia as the majority of them have low wages and are nowhere near as developed as Australia and as such concentrate on different policies and goods for production e.g. making computer programs in China wouldn't be nearly as effective as making them in the US as the US has significantly higher quality workers than China however basic manufacturing would be better for China as they have low wages and it is not complex or hard to do.

I was talking about Asian tigers. If you tell someone that Australia is more developed than Singapore, Hong Kong, Japan, Korea and Taiwan they'd laugh at your face. Australia is fucking backwards we can't even agree on investing in a national infrastructure (NBN) that is ESSENTIAL to any knowledge economy. Yeah because wages = development lol.

America doesn't have quality workers, they just have quality immigrants that fill the jobs.

If you look at all the STEM jobs, they're either 1st or 2nd gen immigrants.

 

[newcastle2012]

We are more developed as shown through the Human Development Index which bases it on multiple factors which you can research and places us second only to Norway. I agree the NBN is essential to our progress but wages are representative of productivity and quality of life which do in fact equal development. Anyway America regardless of what you say does have quality workers they are provided through quality educational institutions e.g. Harvard and other world class universities they also have provided an absolute ton of innovation and inventions in multiple areas. First aeroplane America, First computer America and many more anyway you don't get to the top of the world without working for it.

 

[isildurrrr1]

We are more developed as shown through the Human Development Index which bases it on multiple factors which you can research and places us second only to Norway. I agree the NBN is essential to our progress but wages are representative of productivity and quality of life which do in fact equal development. Anyway America regardless of what you say does have quality workers they are provided through quality educational institutions e.g. Harvard and other world class universities they also have provided an absolute ton of innovation and inventions in multiple areas. First aeroplane America, First computer America and many more anyway you don't get to the top of the world without working for it.

Most of American innovation was done by immigrants and if you look at their top uni's, lot's of kids are first or second generation immigrants. America can produce all that shit because they have $$$ and the incentive for people to perform that well. America isn't really innovating anymore and people know it. What have they come up with the past few years? Half of the tech in silicon valley are foreign born. The US is like japan now, they used to be so innovative and create new products but now they're falling behind. Every other has caught up to America in terms of innovation and the most bleeding edge tech isn't even in America anymore, it's being overtaken by China, Korea, Germany etc. All the R and D for new tech isn't really being done in America anymore, it's all done in Asia.

Australia is a lucky country, we have huge amounts of resources per capita, great medical care and we have a good immigration program as well.

 

[SylviaB]

If fiscal and monetary stimulus boosts an economy japan should be absolutely booming by now

 

[JohnMaximus]

THIS!!!!!!'
It's what I have been trying to tell people for years.
Goddamn Rupert Murdoch and his almost dictatorship of the media


Hayley

Domination/monopolization=/=dictatorship

 

[newcastle2012]

If fiscal and monetary stimulus boosts an economy japan should be absolutely booming by now

They are still stimulating the economy and it does take time for money to circulate to get the desired effect but indeed it does work.

 

[nerdasdasd]

They are still stimulating the economy and it does take time for money to circulate to get the desired effect but indeed it does work.

The multiplier effect. The government spends more > industry spends more > more investment > more people hired > consumers spend more ...

 

[newcastle2012]

Most of American innovation was done by immigrants and if you look at their top uni's, lot's of kids are first or second generation immigrants. America can produce all that shit because they have $$$ and the incentive for people to perform that well. America isn't really innovating anymore and people know it. What have they come up with the past few years? Half of the tech in silicon valley are foreign born. The US is like japan now, they used to be so innovative and create new products but now they're falling behind. Every other has caught up to America in terms of innovation and the most bleeding edge tech isn't even in America anymore, it's being overtaken by China, Korea, Germany etc. All the R and D for new tech isn't really being done in America anymore, it's all done in Asia.

Australia is a lucky country, we have huge amounts of resources per capita, great medical care and we have a good immigration program as well.

American innovation has been slower lately but they are still working on absolutely amazing things (generating energy from plasma, atom theories and practice) but it will indeed revive itself anyway it has been hurt significantly as the money initially used for R and D is now being channeled into kick starting the economy again. China, Korea and Germany may all indeed be innovating more but they are starting at a point below the US capabilities they don't have access to quite a bit of the US arsenal of technology nor a market as big as America (except for China but they are generally poorer and less able to purchase expensive technology that the average American could). In terms of education even here you see a lot of immigrants who go to university but remember that those places aren't generally bought through academic effort but through a hell of a lot of money through international fees. Pretty much you have the money you are in but these people are not always as high quality as those who do it academically. Overall money breeds money simple as that and money may not be able to buy happiness (bs if you ask me) but it can buy everything else with it.
Australia is indeed a lucky country tho