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Old 17th Dec 2019, 05:52
  #61 (permalink)  
JustinHeywood
 
Join Date: May 2019
Location: Sydney
Posts: 69
Originally Posted by chuboy View Post
I'll ignore the pot shot. On the contrary, there's plenty of evidence in dozens of economics textbooks. A first-year economics student would be able to predict what we have seen the Australian economy do in the last few years. Quarter after quarter we have seen reductions or stays on the interest rate, with no improvement to consumer confidence or retail spending. Harris Scarfe is the latest of many big names to go bust in the last year, unable to stay cash positive even through the busiest period of the year for retail sales. If that isn't enough to tell you that people aren't spending the money they have, then I don't know what will. With wage growth at miserly levels, inflation similar, and GDP growth per capita declining, as a country we are technically going backwards except that we are propping things up with immigration. Until that changes I can't see people suddenly deciding to go ahead with that renovation or business expansion.

If you want to avoid recession, you need to stimulate the economy - no different to paying for ads when sales are down even though your cashflow is hurting. Now is the time to be subsidising growth into new industries, stimulus packages for households (which worked during the GFC to protect Australia from recession at a time when the rest of the OECD succumbed), pressing ahead with infrastructure projects, etc. Not tightening the purse strings for the sake of saying you're paying down debt. Not all debt is bad - if people and corporations never went into debt we'd be a very poor country indeed. Even the USA's messiah Donald Trump has doubled down and increased US debt by $9 trillion, their economy is doing quite well despite the impact of his showboating and tariffs - how do the superior economic managers in the Coalition explain that?
No, donít ignore the potshot. By the convoluted reasoning in your original post, both major parties are incompetent (the Greens must therefore be the answer), anyone who bought a house 10 years ago is now rich (millions would disagree), and the only sensible solution is to stimulate the economy by giving money to cashed-up inner city renters (not the bogans out in the Ďburbs).

But youíre not a cashed-up inner city renter and Green voter, no sir, and if you are, then thatís purely a coincidence.
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