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Old 16th Dec 2019, 20:39
  #55 (permalink)  
chuboy
 
Join Date: Sep 2009
Location: BNE, Australia
Posts: 279
Originally Posted by 601 View Post
So getting the finances under control and paying down debt is worse that accumulating more debt?
When economic indicators such as GDP per capita growth, interest rates, inflation rates, unemployment rates, underemployment rates - are all tell you the economy is weakening? Yes, it is far worse. Macroeconomics 101 tells you borrowing is required to stimulate the economy in these circumstances. Chasing a surplus by cutting funding to programs left, right and centre, is just going to reduce the flow of money through the economy and make things worse.

Every economist in Canberra could tell this to our esteemed Treasurer, in fact they probably have. But as we know achieving a budget surplus is politically motivated, and by all accounts, the current members of parliament do not listen to good advice regardless.
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