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Infrastructure better than handouts

Discussion in 'The Economy' started by Simon Hampel, 24th Apr, 2009.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    AM - Infrastructure better than handouts

     
    Last edited: 17th Sep, 2016
  2. Chris C

    Chris C Well-Known Member

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    But infrastructure spending doesn't win votes like cash hand outs do.
     
  3. AsxBroker

    AsxBroker Well-Known Member

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    Still it would be nice if they finally spent some money on health, education and police. Though that's always a political promise and not a reality.

    Cheers,

    Dan
     
  4. Rob G.

    Rob G. Well-Known Member

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    So in Victoria there has been a spike in pokies gambling after the stimulus package.

    Although the Federal Government has stated it is confident the majority will be spent wisely.

    What is "wisely" - given it is aimed at consumers to stimulate the economy. Consumers "consume" don't they ?

    Meanwhile, the Government is raising the mortgage hardship limit to bind limit the lenders' recourse when difficulties arise, such as job loss ...

    ... or maybe gambling losses ?

    Now what does that do to stimulate the economy, it discourages lenders at the same time as encouraging irresponsible borrowing.

    I am really confused about the fundamental economics going on here. I suspect populist politics has taken a priority.

    Cheers,

    Rob
     
  5. Chris C

    Chris C Well-Known Member

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    Health doesn't stimulate the economy, it is a drain on resources. Unfortunately keeping old people alive past their expiry date goes against nature and economics. We need to have a societal shift about our desires to live forever...

    Policing once again doesn't stimulate the economy. The police force don't produce anything of real value. You can argue law and order facilitates investment but I'd argue that there is no real shortage of law and order in Australia. However like most countries will still do suffer from corruption but unfortunately the police wouldn't dent this issue.

    Education is a great stimulant in the long run, we just need to make sure it's applied efficiently and effectively.


    Has populist politics ever really taken a back seat?