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2009-05-07

Rudd and Swan should heed this

Comments on Heather Ridout’s “Spend but don't squander”, 7/05/2009, The Australian, http://www.theaustralian.news.com.au/story/0,25197,25439460-5017272,00.html

While basically agree with most arguments of the author’s, I would disagree on one thing. Cash bonus handouts are unlikely to have the desirable effects to stimulate the economy, to minimise budget deficit, or to increase productivity. In other words, they will not achieve any meaningful policy objectives in the current economic environment. To the contrary, they are a inter-generational redistribution, leaving/increasing unnecessary debts burden for future generations.

We all understand that the world economy has been in big trouble and there will be an adverse impact on Australia. However, by its own reckless doing, the government has made its job to frame next Tuesday's federal budget much harder than it could and should be.

Two cash handouts wasting tens of billions taxpayers money are prime examples. The unrealistic and wishful thinking in terms of having a world most advanced national broadband network with ballooning costs to the proposed $43 billion dramatically escalating from its election promised about $4 billion public money is undoubtedly another.

Yes, few people are arguing against meaningful and prudent fiscal stimulus for the economy and jobs. It is right to invest in education, in productive infrastructure, in job creation, in the most productive way. But the public are certainly worrying the government’s poor performance shown so far.

The public has given the Rudd government a rather longer honeymoon period, after a long period of living with the previous stubborn government for its wrong and unforgiving mistakes in taking part in the Iraq war, in refusing to rectifying the Kyoto global agreement on climate change, in swing the industrial relations too far to the right at the neglect of most working people, even though they should be credited with good management of the economy and the budget. It will not take too long for the public to be fed up with an incompetent government if it does not improve its performance and lift its games. It is the public’s hope that the current government learns from its mistakes and does quickly.

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