Join our investing community

Building a Surplus

Discussion in 'The Economy' started by rjc79, 21st Dec, 2008.

  1. rjc79

    rjc79 Member

    18th Jun, 2008
    The Last government boasted about a masssive surplus, but so what? whats the point of a surplus? A lot of that money is now lost from the spiraling money markets. Wouldn't it have been better to have spent the money on infrastructure, building a first class health and education system, sporting facilities etc. I can't see the point in hoarding money. My opinion is that there never should be a surplus, the budget should be ran as effectively as possible. Yes there will be emergency funds allocated, and other relief funds, but I'm just totally not understanding the logic behind paper being stored away. I think people get carried away with all of this talk.
  2. AsxBroker

    AsxBroker Well-Known Member

    8th Sep, 2007
    Sydney, NSW
    Hi RJC,

    I think the point of a budgetary surplus is that they have net inflows which means they are effectively taking funds out of the economy to slow it down (in good times). In not so good times, they have to stimulate the economy and will have a deficit as they are putting more funds in than they are taking out.


  3. Chris C

    Chris C Well-Known Member

    2nd Apr, 2008
    Brisbane, QLD
    I see a surplus as a positive thing, just as any household budget, the government should live within its means. Of course it should always look to pursue investments that will help stimulate growth in the economy and achieve a good ROI like any business.

    At the end of the day I don't see either a surplus or and decificit as a good or bad thing, as it always comes down to what they spent the money.