At Least Australia Gets it Right

by Sal on February 13, 2009

in Australia,Economy,Politics

The Austrailian parliament rejected a $28 billion Keynesian Economic Stimulus Package by one vote.  This is a major blow to leftist prime minister Kevin Rudd.  Reuters reports that the bill will still likely pass, but be delayed.  Hopefully the report is wrong, and the Australian Senate has enough sense to keep their stimulus from passing, as Keynesian economic stimulus plans simply do not work.  I don’t know the details of the Australian plan (maybe one of our Australian readers can provide the insight), but it can’t be nearly as bad as our current proposed porkulus package.

Stand strong, Australia.  It will be nice to know that there is at least one Capitalistic Democracy left in the world, as the U.S. is moving away from being one at breakneck speed.

{ 1 comment… read it below or add one }

rightonoz February 13, 2009 at 7:21 pm

It passed yesterday.

One independent voted for it after securing $1B in immediate funding towards resuing the Murra/Darling river, the longest in Australia, going thought 4 states. It has been ruined by the three first states in it’s path allowing excessive water draw for flood style irrigation of crops that should not be grown in Australia due to their excessive water requirements (the driest continent on earth). That said, Qld where I live is 75% under water at the moment, crocodiles seen in the main streets of towns up north)

As for the rest of the package, everyone earning less than $80k last tax year gets a $900 handout (the Green party had it cut from $950 for their vote in favour – just a ‘see we hold some power’ move, other than that it is the usual pork barrel designed to guarantee an election win.

I would have been happy to support a (much smaller)stimulus if it was a substantial handout to the thousands who’s lives have been destroyed in the floods in Queensland and the fires in Victoria that have probably killed around 300 people in 1 day. These communities need an infusion. In addition if there were substantial handouts for solar power on individual houses (We have a problem with power grids that cannot handle the load and their touchy feely policy of solar stations in the desert and new power lines to get the power to unstable grids is stupidity). Australia is the sunniest place on earth so one that solar makes sense in. (our business suffers continual power surges and has to have every piece of important equipment supported by a UPS with surge protection). There are other valid sectors for government funds input also.

If you are going to inject money into the economy there are targeted methods that are designed to stimulate private enterprise to grow essential sectors.

I do not agree with sit back and let capitalism do it’s thing. Regardless of left leaning policies that may have encouraged lending to marginal people in the US (didn’t happen down here) most of the losses in the US and here have like it or not been caused by unfettered greed and stupidity(multi million dollar bonuses as the company goes down the toilet), so the introduction of a MODICUM of control doesn’t worry me.

What were are seeing down here is the free market sucking in a much cash as they can and holding on to it, contracting the economy as they do. As you can see, I’m in favour of some government input and some control of the radical side of the free market where the plan at the moment is to snap up weak companies, suck as much money into their bank accounts and screw the country. What I am not in favour of is Rudd’s ‘social capitalism’ which amounts to far too much government intervention and control.

Rudd’s $42B hand outs and those already handed out last year just win votes for the election and put our country back to the ‘banana republic’ debt levels that the previous Labor gov’t gave us. (The Howard years had us almost totally out of debt plus $$$$Billions of surplus available for targeted development strategies – now all gone!) Just for the record, the Lib/Nats did support a targeted stimulus package, about 1/2 that amount without any pork barrel.


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