Posted by: Steven Shaw | March 19, 2009

Stop the spending spree!

You might be forgiven for believing the line that fiscal stimulus is now needed to help the economy. Politicians would have us believe that all economists are in agreement about this. However, this is not true. The Cato Institute put together a statement against fiscal stimulus signed by hundreds of leading economists including Nobel laureates.

Some highlights from the video:

  • “Lower tax rates and a reduction in the burden of government are the best ways to boost growth”
  • “I don’t think it’s going to stimulate anything. The problem with our economy is not that we are not borrowing and spending enough and we need the government to do that for us.”
  • “…more spending and borrowing is not going to solve it”
  • “Government just doesn’t work very well…”
  • “More government spending by Hoover and Roosevelt did not bring the economy out of the depression in the 1930s.”
  • “The new deal failed. It prolonged the depression. It deepened the depression.”
  • “The thing to do now is to reduce taxes and reduce of government.”
  • “This is just basically wasting money.”

So far, Kevin Rudd, Wayne Swan and the rest of the Federal Government have wasted in excess of $50 billion of public money on direct fiscal stimulus “packages”. That’s your money! It’s our money! In fact, it’s not even money that has already been collected – it’s your future income. It’s your children’s money. It’s your grandchildren’s money. Wake up Australia!

Read more about fiscal reality at Cato.

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Responses

  1. Indeed.

    That’s also only what they’re telling us — many of the government-run quasi-private companies (electricity, water, etc) are used as black holes to load up with debt while still paying healthy dividends to the treasury! I wonder how much other “off-budget” debt they’ve accumulated.

    I also love how Rudd justifies the massive deficit announced yesterday by comparing it to that of the other developed nations. I suppose his mother never told him that just because everyone else is doing it doesn’t make it right!


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