We made a mistake with Rudd, didn't we? (3 Viewers)

[funkshen]

scuba_steve doesn't believe in aggregate demand, guys.

 

[Ziva]

You seriously don't know that the lowering of taxes frees up expendable income for the common person to spend more money, which results in more inflation? To curb the inflation, the RBA puts up the interest rates.

Jesus christ. I don't even pay attention in Economics and I know this.

He was looking at the medium run equilibrium and the real interest rate.

 

[funkshen]

rofl walrasian equilibrum and neutrality of money

 

[withoutaface]

Depends whether the tax cuts are matched with commensurate spending decreases. If they are then the short term effect will be an inflation in goods the populace want, but in the long term this will bring new suppliers into those markets and away from digging holes and filling them in again (or installing insulation, as the case may be) and prices will stabilise.

 

[scuba_steve2121]

i always thought inflation was the the value of money going down due to the increase in the money supply? if you lower taxes purchasing power of consumers goes up. but that does't make a difference to inflation levels, when the money they would spend would of been spent by the government back into the economy anyways? you can sort of look at the government as one big consumer. it spends money on wants it wants and gets money by stealing it from citizens or making it out of thin air. just look at Zimbabwe or Wiemar Germany huge increase in the money supply leading to insane inflation.

 

[scuba_steve2121]

this isn't me talking this is the Austrian school of economics talking

 

[funkshen]

scuba_steve, "inflation" (or more appropriately, indexes of inflation such as CPI) are only an aggregation of the percentage change in price of a bundle of goods. The recent surge, or inflation, of iron ore prices quite obviously happened independent of measures of monetary supply. But that is only one component, albeit a significant one, of inflation indicators, and obviously not a component of the CPI, it is a component of commodity price inflation indexes.

Your point of view, that of Austrians or monetarists, stresses the quantity theory of money as the most pertinent, or even the only, explanation of inflation, and thus monetary growth is the culprit of inflation. Keynesians agree that money supply (the core component of the quantity theory equation) is a major cause of inflation, but stress that output gaps are also significant in causing inflation or deflation, ergo government spending.

tl;dr its insufficient to just say MONETEREE SUPPLY DEEEED IIIIIT. It's the complex interplay of consumer and business preferences (supply and demand, including expectations and intertemporal decision making) and monetary measures.

 

[Lentern]

this isn't me talking this is the Austrian school of economics talking

Austrian school economics condensed into nice bite size pieces for year nine commerce students to cut their teeth on. Sans the supply and demand bit.

 

[slugboy]

Re: Did we make a mistake with Rudd? Nope.

your lack of economic knowledge disturbs me

The world wont die if someone doesn't have an economic knowedge.

Most people's eyes gloss over when the news reads the finance report anyway

 

[zombie omie jay]

Re: Did we make a mistake with Rudd? Nope.

how about that ETS LOL

 

[slugboy]

you have essentially just reworded your original post

thus go back and look at mine

What, you arent even going to prove why each of lauchlans comments are wrong.

The fight's been taken out of you man

 

[Slidey]

Latest example of why Rudd is a pathetic slimy dickhead:

Tony Abbott accuses Kevin Rudd of lacking 'guts' to fight for ETS | The Australian

 

[slugboy]

Rudd's a pure populist

boat people are more important than climate change apparently

What has any liberal done about climate change.

The one liberal who tried to do something got voted out of his own party. (Malcolm Turnbull)

 

[slugboy]

Both parties are doing nothing...

Nothing is better than an ETS.

Carbon tax at point of emission.

absolutly true. But this is an election year, so therefore both parties will forget the basic things that need to be maintained etc etc blah blah blah

 

[zombie omie jay]

abbott 2010 for sure

 

[Lauchlan]

yes addressed my points by restating your original points

because your points contradict mine, as mine to do yours. lol just face it that you will say the same thing to me, as i will to you. (because we disagree, simple as that)

im more than happy to continue discussing this with you but keep in mind that it will most definitely always end in disagreement.

this whole debate really goes down to a matter of interpretation and opinion, not necessarily a political argument over facts.

so i invite you to "re" address my points, or you could just agree to disagree like i have said many times. ill go with whatever you choose anyways.

 

[Lauchlan]

Re: Did we make a mistake with Rudd? Nope.

the world wont die if someone doesn't have an economic knowedge.

Most people's eyes gloss over when the news reads the finance report anyway

+1

 

[Lauchlan]

What, you arent even going to prove why each of lauchlans comments are wrong.

The fight's been taken out of you man

correction: why he thinks my comments are wrong. as far as i am concerned all i have presented is my opinion. im sure u of all people should know the difference between fact, opinion and belief? so its either his opinion or belief that im incorrect - not a fact.

unless you think im wrong? lol i will need someone to replace scuba steve...

 

[Lentern]

Latest example of why Rudd is a pathetic slimy dickhead:

Tony Abbott accuses Kevin Rudd of lacking 'guts' to fight for ETS | The Australian

Yeah better to paralyze the parliament with an initiative which he simply cannot pass through the senate than defer the issue until the cross bench controls the senate.

 

[Lauchlan]

What has any liberal done about climate change.

The one liberal who tried to do something got voted out of his own party. (Malcolm Turnbull)

+1 (since i thought of the example)

pretty sad that once liberals get a respectable leader ie. one that wants to act on issues - they vote him out....