Opposites

[Leftofcentresalterego]

Yep, and trying to keep the budget in balance right now would have a similar effect. At the very least, it would allow things to become worse.

To be clear, I am not advocating unlimited budget deficits (as I have alluded to a number of times), simply that one of the main roles of government - federal in particular - should be to fill the spending gap that the market inevitably leaves, forever rendering a certain percentage of the willing labour force unwanted by the private sector. When economic growth is strong, private sector spending is strong and government deficit spending may only need to be small to very small in order to fill the gap. Possibly, it may not be needed (or desired) at all while economy is going gangbusters.

But when growth is weak or negative, it is pointless for government to deliberatly reduce demand further by cutting back their own spending. Blancing the budget in a downturn can only make a bad situation worse.

This is the fundamental flaw in neo-liberal thinking - actively denying the crucial role of government in the economy in the areas of both supply and demand.

[White Indigene]

This is the fundamental flaw in neo-liberal thinking - actively denying the crucial role of government in the economy in the areas of both supply and demand.

Your evidence for this is ???? >

[Hebe]

A narrowing trend in recent federal polling has come to an abrupt halt with this week’s Essential Research survey, which shows Labor’s lead blowing out from 57-43 to 61-39. Supplementary questions find the punters anticipating budget misery and loving it – twice as many (38 per cent to 19 per cent) expect it to be bad for them personally as expect it to be good, while 49 per cent want tax cuts deferred against 35 per cent who want them to proceed. In other news, most support the government’s changes to the emissions trading scheme and oppose the commitment of further troops to Afghanistan.

http://blogs.crikey.com.au/pollbludger/ ... 110509.pdf

This is a very long honeymoon. Even Lib voters I know are fed-up with Turnbull and his negativity.

[Jovial Monk]

Trouble with Mal, he cannot make policy: he articulares a real policy either the right wing or the left wing shoots him down. So Malfeasance just opposes. Be fascinating to hear his Budget reply--he is going to HAVE to announce some alternatives, and not just populist crap like 5c off petrol excise.

They really have to disassociate themselves from Howard's toxic legacy and also bring in new blood.

[Leftofcentresalterego]

Your evidence for this?

WI

You have obviously missed the cretinous commentry floating all over the media like pond scum.

[Jovial Monk]

WI, google "Keynes" or "Keynesianism"

Man, I will enjoy Malfeasance's budget in reply speech.

They tried a few lines of attack on Swan in QT and a MPI motion, Swannee just batted their attack away without raising a sweat.

http://business.smh.com.au/business/swa ... -b3dd.html

Annabelle Crabbe on the "Ugly Duckling" Treasurer