Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Keeping up the stimulus

By Tristan Ewins - posted Tuesday, 20 October 2009


Any minor difficulty with inflation later down the track is no reason to axe the economic stimulus, including the expenditure on economic and social infrastructure. Such programs provide for human well being and may expand economic capacity in the future. Again in The Age, Tim Colebatch has quoted Max Corden: “One is not causing a flood by hosing down a fire.”

Powerful words indeed.

And indeed, the qualitative improvement in living standards which might follow with some programs of expenditure, such as Australia’s “National Broadband Network”, is greater than any purely quantitative economic indicator can express.
Further, some areas of public spending comprise a genuine and important human need while requiring only a “one off” major investment. Investment in social housing especially addresses a critical problem in Australia of homelessness. Increasing supply in the housing market would also prevent the rise of another housing bubble while driving down rental costs for vulnerable Australians. Cutting back on such programs under such circumstances - to reduce the budget deficit - does not make sense.

Advertisement

Without sustained stimulus, the world economy could again nosedive. Hence Stiglitz has also suggested the possibility of a “W-shape” recession. Without sustained stimulus recovery could be temporary followed by a lapse back into recession.

Now is not the time to withdraw economic stimulus. In Australia, the US and elsewhere we need continued and decisive action to support the world economy. But we also need to address qualitative concerns which relate to the economy, not deceptive readings based purely on economic quantity.

The struggle for health care reform in the US is precisely one such issue and we should all support the Obama Administration in its endeavours to achieve change. If anything we need to revisit the kind of mobilisation achieved by the Obama team in its election campaign, to ensure that as comprehensive a public health care program as is possible is achieved in the United States.

  1. Pages:
  2. 1
  3. Page 2
  4. All


Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

34 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Tristan Ewins has a PhD and is a freelance writer, qualified teacher and social commentator based in Melbourne, Australia. He is also a long-time member of the Socialist Left of the Australian Labor Party (ALP). He blogs at Left Focus, ALP Socialist Left Forum and the Movement for a Democratic Mixed Economy.
.

Other articles by this Author

All articles by Tristan Ewins

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Photo of Tristan Ewins
Article Tools
Comment 34 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy