Recent entries
- Spare a thought
- Alert but not Alarmed
- I'm entitled
- Little Phoenix
- Rudd's asylum policy
- Bligh's weird priorities
- Andre Rieu
- Why I don’t trust Stephen Robertson to run our hospitals
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What we're talking about
- Trevor on Water is important Anna Bligh knows that Fluoride is a Poison however she says her job is on the line IF she does not follow the Instructions ... more
- luke151165 on Andre Rieu We went to the 2nd evening in Brisbane and sat up on level 7 directly in front of the stage and could see absolutely ... more
- Michael on The Exclusive Brethren I recently taught Brethren children in a Central-Western NSW state public school. The children are always very polite and ... more
- Lynette on Alert but not Alarmed Unfortunately for Australia, most muslims remain silent to the behaviour of their radical nutters within their communities ... more
- Kane on The Exclusive Brethren i hate brethren more
- Nicky Aplin on Andre Rieu I love your show, have alovely Christmas, hear you in the new year. more
- Damien Fay on I'm entitled As Peter Garrett (ex Midnight oil frontman)once wailed/protested in one of their greatest songs - 'everythings set, ... more
- Geoff Cass on Rudd's asylum policy Those who are seeking a country that will provide them with a place to live, food, clothing, education, tramsport, medical ... more
- David Oliver on Spare a thought We... are hoping for a ham and a couple of nice presents.... They are....HOPING TO COME HOME..... "Doesn't that make you ... more
- Anne Scott on Spare a thought Here here Michael. Beautifully put. We have one who has been there 3 times and about to go back again. Whilst that grubby ... more
- Nikki on Alert but not Alarmed Smithy, Can we keep this on the agenda? Don't let it get put in the too hard basket. As Australian's we need to keep ... more
- Nikki on Alert but not Alarmed Hi Smithy, I listened to your program yesterday and was horrified by the comments of Sheik Feiz Mohammad. What blows my mind ... more
- Jason on Alert but not Alarmed One thing about John Howard, is that when he was in charge, I felt safe that Australia's culture and security would be ... more
- Hard Worker on I'm entitled I have worked all my working life, 20 plus years. I have never depended on Government hand outs at all. I think its time ... more
- Greg Williams on Alert but not Alarmed Every Western nation allowed the socialists to champion the cause of foreign cultures and to embrace them at the expense of ... more
- Geoff Cass on Rudd's asylum policy It is quite obvious why he did this - he really does believe that he is THE WORLD RULER IN EVERYTHING, and he just won't ... more
- Geoff Cass on Alert but not Alarmed Adding to my last note: maybe those allowing these illegal migrants entry are secretly Muslim supporters, and are keen to ... more
- Geoff Cass on Alert but not Alarmed Why are our leading politicians so criminaly stupid as to allow illegal would-be immigrants to come and stay, at taxpayer's ... more
- Anne Scott on I'm entitled Too sickening to comment on. Michael, will you head a new party to stop all this crap? I promise I will vote for you. I'm ... more
- Anne Scott on Alert but not Alarmed Appalling and disgusting, but sadly not surprising. Every intelligent person knows how bad the problem is getting, yet ... more
Bail-out?
Nobody should think that the Federal Government's $10.4 billion redistribution of money from some taxpayers to others is going to fix the problem that got us into this economic crisis.
It simply won't.
At the best, it's a short-term response and then only to a symptom of the illness - we are living on too much borrowed money and we don't create enough stuff of value to pay for it.
The economic growth that this government and the previous Liberal government crow about is built largely on a mirage. Our domestic consumption is funded by debt - which means it's funded by money we expect to earn tomorrow and not money we have earned today. Debt is OK if it goes towards assets that will make tomorrow better or more productive - a hospital, a new road, or a port. Or towards a major asset that you believe will grow in value beyond the cost of the money - such as a house at the right price.
But when the debt goes to pay for rubbish - plasmas, holidays, credit card purchases - the economy can end up in real trouble.
Our capacity to borrow is finite and it's clear our whole country gets the wobbles when the credit starts to dry up.
Rather than talk about addressing this very difficult problem, the Federal Government's response is to tip more money into consumption so that we'll buy more stuff in the lead-up to Christmas. Economists call it stimulating the demand-side. That should have the very short-term effect of keeping us out of a technical recession for another quarter. But it doesn't address our underlying problem at all.
We need to be more productive and to match our growth in consumption with our ability to pay for it. It's a hard thing to say to people - it will sound harsh - and our political leaders on both sides are avoiding it.
If Kevin Rudd was fair dinkum about the well-being of families, he would be saying two things. The first is to pay down debt. Ultimately that's the painful reality - in the short term we have to reduce our reliance on tomorrow's money.
Secondly if you want to spend more money - either as a country or as individuals or families - find a way to produce more stuff of value. Earn more money. Be more productive. Sell more stuff.
But he doesn't say that.
Consume, consume, consume. That's the mantra coming from the Federal Government. And it's a mantra that will lead us into trouble.
Blog comments
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If it's OK for teachers to stike, maybe we can have a tax payers strike when not happy with government behaviour. They would get the message pretty quickly!
Dave Muller Monday 27 October, 2008 - 12:59 PM -
I think the government is doing the right thing end making shore the country continues to have a cash flow. I now have the opportunity to purchase the trailer I need to go to the next level on my business. With Aspinall Trailers support I will design my perfect trailer check www.aspinalltrailers.com
david Monday 8 December, 2008 - 8:36 AM
