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.

Victorians show deficit not inevitable: PM and Treasurer!

Comments on “Judicious regime oversees steady state”, by George Megalogenis, The Australian, http://blogs.theaustralian.news.com.au/meganomics/index.php/theaustralian/comments/judicious_regime_oversees_steady_state/

This is really a piece of excellent news, especially when we all have been submerged in the helpless rhetoric that we have been so familiar with, that our PM and federal treasurer have presented to us repeatedly over the past months that deficit will be inevitable, but blamed for international factors and they have nothing to do with it.

The contrasts between the Victoria budget and the budgets of NSW, Queensland and the Federal government (some are coming) are astounding! We should congratulate the Victorian government and applaud its remarkable performance over the past many years from both sides of politics. I think they deserve a Nobel prize for that.

Perhaps where our PM comes from could be an indication of how well he will perform during his prime ministership - Queensland. That would be unfortunate for Australians. But he has so far appeared to be in the race to overtake his State counterpart in budget management.

It is all the results of ideologies and popularism. It would be a real blessing for the Australian people if we always have PMs who manage the taxpayers’ money prudently. John Howard, notwithstanding his strong ideologies, compared much better to his successor in this area, perhaps by a factor of many times.