Sunday, February 15, 2009

Michael Costa writes again for The Australian

The neo-interventionist mantra on fiscal stimulus strategies is that they should be "timely, temporary, and targeted". This mantra presumably guided the Rudd Government's $42 billion so-called Nation Building and Jobs Plan. It is this mantra that favours cash handouts to people more likely to immediately spend the additional windfall: in Treasury jargon, in "liquidity constrained households". The so-called Economic Security Strategy $10.4 billion handout stimulus is in this form.

Of course the big assumption here is that these households are not facing debt burdens that will immediately absorb the stimulus.

Read the article here.

The comments and letters are worth a read, too.

And First byte rubbishes the green's pushing bicycle paths when dams would better cater to the needs of each state.

No comments: