Dissenting Report a Must read.
As economic rationalists we at Agitate are deeply concerned by the government’s $42 billion stimulus package.
We believe it is more about politics than economics and this we believe is proven by the Senate Inquiry into the package.
Of course Senate Inquiries nearly always split along party lines and this Inquiry is no different with the final report having a Dissenting Report by Coalition Senators.
Entitled Spending Spree Not Stimulus it is a worthy read for those who are concerned about the impact of both the previous stimulus package and the impact of the $42b package passed by the Senate last week.
This spending should be an area of major debate in the community because its impact will echo over a generation as we attempt to repay the debt it will load onto the economy.
When an economy slides into recession or a significant slowdown the budget automatic stabilisers kick in and you go into deficit – but this package will deepen that deficit significantly.
Of concern though is that it appears neither Treasury or the Government can tell us the impact that this deficit deepening will have on then economy or jobs.
In fact the Treasury and Government are unable to say what impact the pre Christmas $10.6 billion stimulus package had on the economy even though it was claimed it would create 75,000 jobs – however the latest Australian Bureau of Statistics Labour Market Survey shows unemployment climbing.
To read the full report of the Senate Finance and Public Affairs Committee click here.