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why we need to bleed the patient « Previous | |Next »
February 16, 2013

The Coalition's economic policy is one of enthusiasm for austerity that includes severe cuts to social programs and the safety net. They are deficit hawks, even though austerity in response to the current global recession is a lose-lose proposition, as it reduces already inadequate private and public sector demand and economic growth. It is the economic analog to bleeding a patient and making them sicker.

Austerity, eliminate the budget deficit and a balanced budget public services to the poor to pay for the roll back of the mining tax and carbon pricing. The rhetoric is one of we’re running out of money; and that if we can’t keep running huge deficits, and increasing our national debt forever, because eventually, our creditors will just cease lending us money.

We cannot tax “the job and wealth creators” very much (eg., Big Mining and the fossil fuel industry) because they’ll go on strike and won’t create any jobs because the government has killed their incentive. So we have to reduce our borrowing, because we cant have any tax increases on “the job creators”.

A fiscally responsible government, therefore, has to lower taxes on “the job creators” even more, and cut spending substantially on programs that provide benefits for the poor and the middle class, so we can live within our means,” and remove the burden of excessive public debt on our grandchildren.

That's why we need to bleed the patient for the sake of prosperity.

There'll be smoke and there'll be mirrors because some states in the federation will be increasingly characterized by low public investment, worker abuse, environmental degradation, educational backwardness, high rates of unwanted pregnancy, poor health, and so on. The smoke and mirrors will in the form of how sharp cuts in taxes and government spending can generate jobs, wean citizens off public aid and spur economic growth.

Making most people poorer is the way to become rich is the smoke and mirrors.

| Posted by Gary Sauer-Thompson at 4:04 PM | | Comments (5)
Comments

Comments

The politics of austerity would ensure that South Australia and Tasmania become ever more linked to backwardness, second-rate educational systems and economic weakness.

its the problem of the Middle --the middle class-- which has become a central economic challenge . It is at the heart of our growth crisis as well as our living standards crisis. It is a problem of inequality as well as a problem of productivity.

The Coalition's solution to addressing the squeeze on the middle class is trickle down and competing internationally on the basis of low skill and low costs without a plan for building a more productive economy at home.

I wonder how stupid the voters of Australia really are?

Any woman working in teaching, nursing or public service would be nuts to vote for the Coalition as their already announced policies damage their job prospects, their pay.

Any Australian living on incomes under $40,000 will be worse off under the Coalition promises.

My economics background suggests most self-funded retirees will be better off under a Labor government whose policies bolster the economy buoying up the stock market that funds their retirement.

However the media, controlled by a handful of owners is telling all voters to vote for the Coalition

The neo-liberals claim that the 2008 global financial crisis was not caused by the failure of the free market. It was the excessive state regulation.

Anyhow our market economy is not a true one, since it is in the clutches of the welfare state.