Opposites

[TomB]

Howard made a career of taking away - guns, workers rights, education equality, asylum seekers rights, aboriginal rights, our money .....

Rudd is making a career of giving stuff back - broadband, cash, employee protection, same sex relationship recognition, apology to Aboriginals, green dollars .....

[boxy]

Well yeah.

Except the cash bit. Ruddy's not giving anything back there. It's a nil net game there. It's our money, or should I say debt, that he's "giving" us.

[mantra.]

I couldn't find a reference in the news online, but on the radio today there was mention that due to the FTA we have with the US, which is totally one sided in their favour, we may no longer be able to manufacture pharmaceuticals in Australia and thousands more jobs will go overseas. There is a loophole the Americans have brought to our attention. So far we are the big losers in this agreement and already have a trade deficit of billions to them. Now Rudd is considering an FTA with China. We may as well say goodbye to any manufacturing we have left here. It's impossible for us to compete on a level playing field with these large nations and after our US experience Rudd shouldn't even be considering it.
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[Jovial Monk]

Rudd should cancel the FTA with the sceptics. . .if they want an FTA with us then come back and this time negotiate in good faith!

And hopefully our Trade Minister will be heaps better than stupid bloody Vaile! Think Crean would be up to the job. Not an iota of charisma but a dogged, informed persistence.

[Leftofcentresalterego]

It's a nil net game there

Not correct Boxy. A federal deficit represents a net gain to the money supply in the economy. A federal surplus is not national savings, it is simply an accounting statement to indicate that the government taxed more than it spent.

Bring on the deficits (they will get smaller as the economy recovers). Unless we are at or near the peak of a boom (where a surplus may be justified) surplus budgets represent an economy out of balance. The majority of the time, balance is represnted by a federal deficit (perhaps much smaller than the current one, which itself is less than 2% of GDP) which allows for private sector surpluses (savings). If the currency monopolist becomes obsessed with ever increasing surplus after surplus, the money supply ends up running down. Australian $ are "born" when the federal government spends and "die" when the federal government taxes.

[Jovial Monk]

The net cost to the taxpayer is the interest paid on the borrowings.

The alternative is higher unemployment, even lower tax receipts and much higher social security payments.

[boxy]

Perhaps we need a new saying... "Liars, damn liars, and economists..."?

Bottom line, Lefty, we've got to pay for the stimulation, eventually.

[Leftofcentresalterego]

The bottom line is Boxy: we need to stop thinking of a federal budget as though it were merely a bigger version of a household or business budget. It is not remotely the same thing and the rules that apply to us do not apply to it.

[Leftofcentresalterego]

the free trade agreement with the US which is totally one-sided in their favour

You are spot on there Mantra! I will have to dig for the figures again but the FTA with the US sucks badly for us. We have been importing in $ terms, about 50% more from them than we exported to them. An much of it was stuff that we already successfully produce and export. The excercise has been largely a pointless waste which has benefitted a much larger and more powerfull economy than ours and has delivered no net benefit to us.

And the last thing we need is to become reliant on those on the other side of the planet to produce all our pharmaceuticals for us.

[Jovial Monk]

Leftofcentresalterego said

the free trade agreement with the US which is totally one-sided in their favour



You are spot on there Mantra! I will have to dig for the figures again but the FTA with the US sucks badly for us. We have been importing in $ terms, about 50% more from them than we exported to them. An much of it was stuff that we already successfully produce and export. The excercise has been largely a pointless waste which has benefitted a much larger and more powerfull economy than ours and has delivered no net benefit to us.

And the last thing we need is to become reliant on those on the other side of the planet to produce all our pharmaceuticals for us.

We need to cancel that FTA. Another fuck up from Howard!

I loved Howard increasing line rentals prior to selling Telstra: it led to tons of people cancelling their landline and going mobile phone only. His classic is that LNG contract tho--way too low a price and no price escalation or sunset clause. What a clown!

At last that rort of the private health rebate is going, complete waste of money!