Keynes in 2011

[Jovial Monk]

http://www.fabian.org.au/files/Australi ... VA4%29.pdf

[Sappho]

What recovery? Australia was insulated from the crash so therefore needs no recovery. We didn't even go into recession and the economic maths shows that we wouldn't have gone into recession had their been no handouts.

Our biggest economic problem is the value of our dollar which is too high for a small economy. But that's not our fault... the USA is seeking to default of debt by devaluing their dollar.

[Jovial Monk]

We weren’t insulated dear Sappho, our economy is too open for that to be possible, we live by trade, trade lives by finance and finance was in short supply after the fall of Lehman Bros. Mining didn’t carry us—prices/volumes dived and tens of thousands of mine workers had their AWAs abruptly cancelled.

Nope, it was Rudd/Swan/Tanner/Gillard/Henry/Stevens that provided the buffers that meant we sailed through the GFC. Cash handouts, BER & HIP, the two bank guarantees, retail and wholesale, picture of a government in control. Textbook case of Keynesianism in action.

[Sappho]

As you wish it... it's just one opinion vs another. But tell me, what does Keynes say about a small economy with an overvalued dollar? Shall we do as the US is doing and flood the market with AU dollars thereby debasing its value?

[IQS.RLOW]

We weren’t insulated dear Sappho, our economy is too open for that to be possible, we live by trade, trade lives by finance and finance was in short supply after the fall of Lehman Bros. Mining didn’t carry us—prices/volumes dived and tens of thousands of mine workers had their AWAs abruptly cancelled.

Nope, it was Rudd/Swan/Tanner/Gillard/Henry/Stevens that provided the buffers that meant we sailed through the GFC. Cash handouts, BER & HIP, the two bank guarantees, retail and wholesale, picture of a government in control. Textbook case of Keynesianism in action.

Dream on loser

Mining carries us and also provided the surplus that Rudd threw away with abandon and the labor party has continued on his theme of chucking money away on good for nothing projects

picture of a government in control

Bwhahahahahahah you can't be fucking serious...even the govt knows it is in trouble

Sappho is correct. Australia didn't need to throw away their $20bn surplus because Rudd and Swan panicked like little girls and gave away free cheques only to try and scrounge them back again via levys and carbon taxes

[Sappho]

Moreover, if Keynes economics is the solution, why hasn't it worked in the US and the EU Monk? Certainly they were pumping liquidity into the market as fast as they could print the stuff.

[Jovial Monk]

Quantitative easing is not keynesianism Sappho dear. USA did little bits but fragmented and money soon ran out. Was little more than boondoggles for congressmen. Dollar is floated, out of govt control. More later.

[IQS.RLOW]

The US and EU should have been the proving ground for Keynes...but it wasn't and isn't

I'm sure lefty will pop in saying it was because they didnt spend enough trillions or give enough away... but the fact remains that Keynes doesnt work

[Sappho]

Quantitative easing is not keynesianism Sappho dear. USA did little bits but fragmented and money soon ran out. Was little more than boondoggles for congressmen. Dollar is floated, out of govt control. More later.

That is an unfair representation of the US economic policies surrounding the market crash... they too had stimulus packages.

[Jovial Monk]

As I said, the total stimulus money was inadequate and fragmented, little projects here and there in each Congressional districts, bits of pork barreling. NOTHING anywhere like our BER program, no big cash handouts “Go early, go hard, go households” said Henry and that is what happened. Ask Frogen who keeps up with US politics. US gave money to banks—who certainly didn’t lend it out to business to go create jobs: houses, cars, retail all crashed. Retail was set to crash here but for the two handouts.