Keynesian economics and the Magic Pudding


The level of economic ignorance and stupidity has reached such astronomical levels that I can make the forecast that Australia is heading for many years of falling real incomes and a vast increase in the level of poverty.

You really have to stand in amazement at how little flak this morning’s front page in The Oz has received: Election 2022: Labor to turbocharge budget deficits in ‘quality spending’ focus. If Labor wins they will do nationally what Labor has done in Victoria. 

Labor is planning to unveil budget deficits up to $10bn greater than the Coalition over the next four years as Anthony Albanese sharpens his election pitch around the need for “quality” spending rather than fast-tracking debt reduction….

“What we need to be able to do is to flick the switch in the budget, not to austerity, but to quality, so we can fund the things that we care the most about,” Dr Chalmers said.

Who could possibly be against “quality spending”? And these are the sorts of things the ALP has in mind.

Last month, Dr Chalmers said Labor would raise almost $1.9bn from its multinational tax policy and recoup billions of dollars through a “waste and rorts” audit during its first year in power. But this is not enough to cover its $5.4bn childcare policy, $1.2bn skills commitment, $2.5bn boost to aged care, $525m increase in foreign aid, $329m for housing and $135m on urgent care clinics.

If you are the kind of person who actually believes that spending money automatically creates productive growth then you are just the person to fall for these idiocies. Our present Government actually does know better but are barely able to explain any of it in a way that will have the general run-of-the-mill Treasury and academic economist on side. Certainly you will find almost not a single warning out there from hardly any of them.

Meanwhile we will be dismantling our power grid and ability to deliver low-cost electricity to industry. I don’t wish to single out The Age but reading its editorial today really did depress me: Fair wage growth must be at the heart of economic recovery.

I’m all in on the sentiment, but first you have to have an economy creating more value adding output than the value of the resources used up in production. If anyone thinks the ALP is remotely capable of that sort of outcome, just vote these people in and then sit back and enjoy the rising level of poverty that will then be inevitable. Not for everyone, of course, just most of us.


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Bluey
Bluey
May 7, 2022 8:37 pm

On top of that, an awful lot of the people I deal with are asking the question of why they should bother putting in the hard yards to be productive. When people get paid to sit around and do SFA, and the governments both state and federal are happy to tax the snot out of everything, where is the incentive to do better?

Hell, the last misery pay rise I had I ended up worse off because it just barely went up a tax bracket. And now with the covid crap of the last two years I’m asking why I should contribute at all, with the attitude of governments toward citizens.

The Beer whisperer
The Beer whisperer
May 7, 2022 10:37 pm

It’S nOt RoRtInG iF iT’s CaLlEd QuAlItY!

jupes
jupes
May 7, 2022 11:25 pm

$525m increase in foreign aid

Well at least corrupt Pacific political hacks and African dictators will be pleased.

Fair Shake
Fair Shake
May 7, 2022 11:38 pm

Its not a lie if you believe it.
G. Constanza.

Tommbell
Tommbell
May 8, 2022 1:03 am

Tax the rich. Apparently.

Mother Lode
Mother Lode
May 8, 2022 8:39 am

Its not a lie if you believe it.
G. Constanza.

And there is the most plenteous room for belief where there is no knowledge.

How many magnificent schemes have been thwarted by the realisation that they won’t work.

Roger
Roger
May 8, 2022 8:42 am

I can make the forecast that Australia is heading for many years of falling real incomes and a vast increase in the level of poverty.

Socialism = equality in misery.

Except for the nomenklatura, or as I prefer to call them, the parasitic class.

HD
HD
May 8, 2022 11:45 am

Well I don’t have some kind of omniscient nor prescient perspective on the best way forward. A return to labor’s wisdom is no kind of future unless you aspire to the attire of hessian sacks and the housing of a cardboard box.) however a good place to start is reducing the prospects of major parties forming government outright post Federal election. The less of the sitting peons and yes men that are returned to their seats the better. Generally speaking, the various criminals, miscreants, sociopaths and career parasites with elastic/deformable personalities, morally/ ethically analogous to paper or jelly- must not be allowed the leeway to continue acting as the sheep they are. Rhyme and repeat of the last thirty months’ anathemous destruction is entirely avoidable.

On 21st PUT THE MAJORS LAST. Deny them and their minor party/independent proxies further opportunity via the implication of false public consensus to inflict more of the same on us and the country.

This site‘s been overwhelmed with traffic. Check it later. Generates electorate specific suggestion how to vote cards.

NoFixedAddress
NoFixedAddress
May 8, 2022 11:53 am

We have unbridled taxation without any representation.

The political of this country have trashed The Australian Commonwealth and The Albatross is now saying The National Cabinet has precedence.

And so called ‘renewables’ are going to destroy all environments with their filthy exploitative materials, destructive manufacturing processes and crippling tax burdens on ordinary people just to install the filthy solar and failed windmills.

It is amazing how much support ‘yuan’ can get from Australia with a renmimbi or 2!

https://www.world-nuclear.org/information-library/country-profiles/countries-a-f/china-nuclear-power.aspx

Forget the debt load of “Their Commonwealth” for a moment and tell me the debt load of their States?

Bruce of Newcastle
Bruce of Newcastle
May 8, 2022 12:43 pm

its $5.4bn childcare policy, $1.2bn skills commitment, $2.5bn boost to aged care, $525m increase in foreign aid, $329m for housing and $135m on urgent care clinics.

This is the “quality spending” we’re getting for that $10 billion of additional debt? What is the return on investment on any of that?

Borrowing from the future to pay for increased consumption, which is what this is, is just a way to guarantee collapse once people are unwilling to lend to us anymore. Maybe Labor hopes it won’t happen on their watch though, which is not guaranteed when interest rates are rising fast. Watch just how fast your government finances crater, guys, as higher Reserve Bank rates eat the guts out of your Budget.

NoFixedAddress
NoFixedAddress
May 8, 2022 1:00 pm

Don’t despair Bruce of Newcastle!

When we have borrowed ourselves into complete penury then they will usher in “The Great Reset”.

We Eloi will own nothing and be happy!

Pretty amazing that the labor Albatross is referencing the Victorian taxation theft system.

Bruce
Bruce
May 8, 2022 1:52 pm

Winston Churchill summed it up succinctly:

“Socialism is a philosophy of failure, a creed of ignorance, and a gospel of envy. Its only inherent virtue, the equal sharing of misery.”

And old Winnie was being too charitable, especially about the “equal sharing of misery”.

He also noted:

“We contend that for a nation to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.”

“Some see private enterprise as a predatory target to be shot, others as a cow to be milked, but few are those who see it as a sturdy horse pulling the wagon.”

NoFixedAddress
NoFixedAddress
May 8, 2022 2:13 pm
Ed Case
Ed Case
May 8, 2022 2:37 pm

On 21st PUT THE MAJORS LAST. Deny them and their minor party/independent proxies further opportunity via the implication of false public consensus to inflict more of the same on us and the country.

In other words:
VOTE LABOR
since ALL the Minor Parties, Rise Up Australia, Sustainable Australia, Animal Justice, The Greens, Whatever The Xenophon Party is called now, Simon Holmes ‘a Court’s Party, Shitters & FudgePackers Party,
Reason Party, Jacquie Lambie etc.
are all either Labor Fronts or dependent on Labor Goodwill,
anyone who follows this advice is being taken for a ride.

Tom
Tom
May 8, 2022 3:04 pm

I don’t wish to single out The Age …

Why not, Steve? As if they needed another voice, The Age now represents Big Government Victorian public service Greens who are not only against generating new economic activity, but think the private economy should be abolished.

In the past 20 years, The Age has become a workers collective with a staff veto over executive appointments, from the editor down. If editor of The Age isn’t communist enough, the staff refuse to work with her (as in all insurrections against the patriarchy, the editor must either be a female or a male eunuch as the insatiable female revolutiionaries who run the joint demand ever more restitution from daddy).

The Age publishes nothing without a political objective. At The Age, “news” is simply whatever brings the system down fastest, with an endless supply of revolutionary cannon fodder from Australia’s journalism schools, for whom the democratic public interest and a productive economy is the enemy.

Steve, if you’re looking for Keynes Central, The Age is it.

H B Bear
H B Bear
May 8, 2022 4:10 pm

Is Kates criticising UniParty policy again?

HD
HD
May 8, 2022 4:30 pm

Ed Case says:
May 8, 2022 at 2:37 pm

In other words:
VOTE LABOR
since ALL the Minor Parties, Rise Up Australia, Sustainable Australia, Animal Justice, The Greens, Whatever The Xenophon Party…

May I refer you to re-read and consider the meaning of the term “…proxies…” within context of my words that you’ve quoted. You have listed some of the parties I was thinking of.

You are suggesting that for example, One Nation, Australia One, GAP, AFP, AVP, IMOP, Liberal Democrats and quite a number of non-aligned independents are directing their preferences to Labor via suggestions on how to vote cards?

Old Goat
Old Goat
May 8, 2022 5:46 pm

With all the lies we have been fed by the MSM recently anyone who believes anything they utter or print is a gullible fool . On Politics – do your research and look at their policies and try to decide who will screw you the least . We are headed for the cliff and nobody is trying to hit the brakes because nobody will vote for them . Best thing you can do is try to prepare for the sudden stop at the bottom.

Winston Smith
May 8, 2022 10:19 pm

Steve Kates:
I’ve done everything I can to batten down the hatches economically and I know it isn’t enough.

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