Apart from trimming the fat, it's what I reckon they try to *let happen.
I think the point is that governments have basically handed out lots of money to be spent on consumer goods and so on whereas a greater economic return could have been achieved by putting that into additional infrastructure instead.
The problem with trimming the fat in the PS is they usually trim the meat and keep the fat.
In other years the government has handed out lots of money to be spent on bombs, bullets and aircraft etc to fight wars.I think the point is that governments have basically handed out lots of money to be spent on consumer goods and so on whereas a greater economic return could have been achieved by putting that into additional infrastructure instead.
There's a limit to how much infrastructure is useful but we're not there yet, it's a better way to pump prime the local economy than importing big screen TV's and cars.
That’s part of fighting the negative effect of the virus, that has a genuine economic purpose, just as going into debt to fight WW2 also had an economic purpose.
Spend the money on infrastructure and it creates economic activity now and into the future.
Agreed entirely.The problem with trimming the fat in the PS is they usually trim the meat and keep the fat.
A few large corporates have gone down the same track over the years and they, and their share price, tends to stagnate (at best) over the long term as a result. Short term bounce as costs are cut then long term pain as the reality of losing the best people sets in.
Avoid companies run by "fixer" type CEO's with a track record of coming in, slashing costs then moving on before the inevitable hits the fan. Pump and dump is the game basically....
As distinct from real, actual cost cutting which takes out the dead wood and keeps the rest. All too often that's not how it's done though.
The problem is knowing that i have no doubt in my mind debt would be bigger had Labour been in power.with more businesses down.
The debt will be paid, but during the middle of the war is not the time to worry about the debt.
If there is a residential building boom, that shows that handing money out is creating stuff for tomorrow.Spend the money on infrastructure and it creates economic activity now and into the future.
Spend the same money by handing it to consumers and it creates economic activity now but nothing tomorrow.
The approach we have taken, seems to have resulted in an extreme two halves situation. Things like residential building are booming to the point of material shortages meanwhile things like live entertainment are almost dead. The real economy's very split there.
But governments are in the business of re-election the time infrastructure is finished they're long goneSpend the money on infrastructure and it creates economic activity now and into the future.
Spend the same money by handing it to consumers and it creates economic activity now but nothing tomorrow.
The approach we have taken, seems to have resulted in an extreme two halves situation. Things like residential building are booming to the point of material shortages meanwhile things like live entertainment are almost dead. The real economy's very split there.
I don't catch taxis often, but when I do, I like to have a chat with the driver and get his/her views on the state of the economy. It can be quite an interesting chat.
I also like to walk a lot, and perhaps it's due to my 'bear-ish' nature, but I have noticed a lot of shops closing down on the streets I walk on. Some of these have been in existence for quite a while (like 5+ years) and some seem short lived.
More recently, I have noticed some friends within my circle to be losing their job or struggling with their career stability. It almost feels like the grim reaper of redundancy is circling me like a shark.
So from my own personal, and microscopic experience, the state of the economy appears to be somewhat gloomy, or at the very least, cautious.
I'm interested in the views of others on their own personal/street level/coal face level on how they feel the economy is going or will be going. Please feel free to share
when i was there ( WA ) in 2012 , WA was obviously the growth potential of Australia , quirky but full of potential
another difference is during WW1 and WW2 we killed thousands of young man in their prime , this time they would rather kill grannies ( pensioners )
MMT ( Modern Monetary Theory ) MIGHT work if the money is invested WISELY in durable infrastructure , but sadly human nature ruins than chance
Hello and welcome to Aussie Stock Forums!
To gain full access you must register. Registration is free and takes only a few seconds to complete.
Already a member? Log in here.
