There’s quite a bit of talk from the unions and others (both left and right of centre on economic issues) about stimulating the economy rather than cutting.
I don’t think this would work for two reasons;
A) We are an open trading economy and the money would juts dissipate into the broader international economy. What I mean by that is that we don’t have a domestic economy to stimulate; we don’t make anything that we consume.
B) We’ve been stimulating the economy like mad for the last few years and there’s nothing in reserve so cash injections are out.
Our economy is built on making things that other consume (be they goods or services) and consuming things that others make. Our only option is to make ourselves competitive again.
What do others think?
I don’t think this would work for two reasons;
A) We are an open trading economy and the money would juts dissipate into the broader international economy. What I mean by that is that we don’t have a domestic economy to stimulate; we don’t make anything that we consume.
B) We’ve been stimulating the economy like mad for the last few years and there’s nothing in reserve so cash injections are out.
Our economy is built on making things that other consume (be they goods or services) and consuming things that others make. Our only option is to make ourselves competitive again.
What do others think?