What the election is about economically

[Jovial_Monk]

First, a look at the world economy. Austerity in the EZ has seen rates of unemployment of up to 25%, in pockets and for youth—probably double that.

The US economy is slowly getting back to speed but the fucking idiots in the Repugs could snuff out this weak, slow recovery in an instant.

This has meant that China and other SE Asian economies have slowed down heaps. So prices for coal, and demand for minerals generally have dropped. This means our economy is now more fragile than it has been for a while.

What responses can the govt make? Basically, support the economy or apply austerity.

Firstly, in situations like this trying to get a surplus are beyond stupid! Now is not the time for the govt to take more from the private sector than it gives—the definition of a surplus. So, the honest answer today would be—the Budget will be in deficit for some years and this is good not bad.

Stimulus will see us borrow at the historically low cost of funds to do infrastructure:

The NBN

Rail, ports, airport and that kind of infrastructure

Education, especially higher education

Health, keep going on telehealth, physical health infrastructure etc

Road building and metro public transport

This would employ people, keep the private sector going, ward off recession. A serious recession takes eight years to be over with unemployment back to pre-recession levels. So if you do nothing you pay high unemployment benefits for eight years and at the end have a dispirited workforce with outdated skills. Not good

Now, Abbott is going to impose austerity. He is talking of sacking 20K public servants and thousands of teachers and wants to get back to surplus Budgets. When Costello hands in his “audit” report the sackings will really start, the GST increased and any work on any kind of an NBN halted. And Medibank Private and the APO privatised.

The high unemployment will see the ratings agencies remove the 3xAAA quick as a flash so borrowing costs increase, the dollar drops and so imports like petrol (petrol, diesel, gas) soar in price, deepening the recession.

Within 12 months of Abbott PM the dollar will be below 60¢US, unemployment will be over 10% and inflation, due to cost of imports, soaring and with it interest rates.

And the end product of austerity? A BIGGER Budget deficit—as unemployment benefits soar and tax collections slump. This happened in Greece, Ireland etc etc it has happened in the UK and it has happened in Qld.

Abbott PM is way too big a risk! Rudd will end up going the stimulus route, anything else will destroy the good work he did during the GFC.

Abbott won’t build Fraudband—it can’t really provide much more than up to 25mbps with our copper and Costello will say he has to reduce debt. This will see our business competitiveness, our education etc rankings slide, we will become a backwater, the poor white trash of Asia. Never has our economy been more fragile, never has austerity been less suited in our country’s history!

[IQS.RLOW]

So despite your ALP saying that they were going to have a surplus for 6 years, because they couldn't get there and ruined the economy now a surplus isn't necessary?

The ALP fucked the economy, spent too much and your solution is to keep on spending more? That's the deluded thinking of the ALP and their fucked up supporters.

[Jovial_Monk]

If I wanted to waste my time I would read the predictable crap the acne’d aging juvenile has posted. Fortunately, I have better things to do!

[Rorschach]

Is Monk pretending he knows about economics and the election as well IQS?



isn't possible while he is so devoted to the LYING NUN...

[Neferti]

EVERYBODY but the ALP it seems, knows that it you have financial problems you don't go out and get another Credit Card to get yourself out of it. Only children think money grows on trees!

[Jovial_Monk]

Cluck cluck cluck

[Rorschach]

[Jovial_Monk]

Hmmm education—should add trade education there, then lots of apprenticeships can be offered with all the infrastructure work on the go.

[Neferti]

Hmmm education—should add trade education there, then lots of apprenticeships can be offered with all the infrastructure work on the go.

What has the GALP done about apprenticeships over the last 6 years? NOTHING, right? Why your sudden interest in trade education?

[IQS.RLOW]

He's hoping he can stick his own snout in the trough by offering home brewing apprenticeships.

He tried to charge people $150 for a home brewing tutorial one day. Had no takers and got laughed at and told his beer tasted like shit.