It's called basic Keynesian economic theory mate, you have to spend your way out of a recession ;)
It's what any responsible Government should do in that sort of huge crisis and was given the thumbs up by most economists around the world, including the IMF and OECD.
We are still in the best position economically of any developed economy. Surpluses and Deficits are normal tools used for fiscal policy control.
It can and has been argued that Messrs Howard and Costello squandered a massive opportunity over several years by not banking much, much larger amounts of money while the going was good, instead they bought elections by splashing out money to buy votes.
Now that manner in which the stimulus was done and administered could have been a handled a hell of a lot better.....
and before anyone accuses me of being a Labor apologist or 'muppet' (eh Stevo :p) I'm not a one eyed supporter of any political persuasion, and yet funnily enough I've never voted Labor in my life either, but I sure as hell wouldn't vote for a party led by the Mad Monk ;)
Quote:
OECD calls for tighter monetary and fiscal policy
- Michael Stutchbury, Economics editor
- From: The Australian
- February 08, 2010 12:00AM
THE Organisation for Economic Co-operation and Development says Australia's quick policy response to the global financial crisis helped the economy to weather the storm. Now it says both budget and interest rate policy need to be tightened further to manage the economy's recovery.
From here http://www.theaustralian.com.au/busi...-1225827626112

