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Where's the Money come from? (General)

by dulan drift, Tuesday, May 12, 2020, 18:25 (84 days ago) @ dulan drift

Here's the Australian treasurer's take on the subject:

"More than $30 billion in aid is expected to flow next month, Mr Frydenberg told Parliament on Tuesday, the "largest and fastest injection of economic support Australia has ever seen". It's part of a $320 billion package - equivalent to 16.4 per cent of gross domestic product ... However the "unprecedented scale and speed" of the government's economic response had driven a rapid increase in borrowing, Mr Frydenberg said."

Ok - so how to pay that back?

Mr Frydenberg said the "proven path" for paying back debt was not higher taxes, but rather "growing the economy through productivity-enhancing reforms". The "values and the principles that have guided Coalition reforms in the past must guide us again in the future", Mr Frydenberg said.
"Unleashing the power of dynamic, innovative and open markets must be central to the recovery with the private sector leading job creation, not government."

So if it's the same values and principles then i'd wonder why productivity didn't dramatically increase last year?

Secondly, is the idea of growth as a solution flawed? You could argue that it's human growth/consumption that got us into this predicament in the first place.

"Labor's Treasury spokesman Jim Chalmers said the government seemed to have no plan to reboot the economy.
"If only the Treasurer had been able to cough up some detail," Mr Chalmers said, referring to a lengthy coughing fit Mr Frydenberg had during his speech."

He is currently being tested for the virus. I'll be surprised if he's got it coz it's down to zero cases for most states now - more likely he knew his words tickled his throat coming out.

Anyway, the guy is in a tough tough spot as treasurer. I don't envy him that job.


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