Wednesday, 4 February 2009


$42bn. This is what Kevin Rudd plans to spend to 'save' the economy. It will not save the economy of course but our PM likes to make grand gestures. We will add this package to the apology to indigenous Australians and the signing of Kyoto.
The question probably should have been , is it better to try and kick an economy or massage it?
Kicking may have a short term effect, enough to get the PM through the next election. When he has completely ruined the economy the other mob will have to take over and try and repair the damage yet again.
Massaging the economy would have made more sense. A drop in interest rates, tax cuts (especially for low and middle income earners) and ditching pay roll tax might have done more to help.
Handouts of $1000 are more likely to find their way to the poker machines.
On top of all that we still have unions demanding pay rises, teachers going on strike, no agreement over the River Murray issues and a failure to handle the power supply in a heat wave. It is interesting to note that there is no money being spent on water or power issues in this 'stimulus' package. I wonder why not?

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