Friday, 21 December 2012

Know your subject

Okay I know I said I wouldn't be writing but someone has annoyed me/



Sam Wylie at Core Economics ( sorry no link as the article is that bad!) makes a number of rather silly remarks about the fiscal position of the Australian government.

In no particular order.
  • He thinks it is real GDP that is important to the budget position. It isn't it is nominal GDP
  • He doesn't understand the government doesn't want to obviate the automatic stabilisers as the economy is slowing
  • He thinks that cutting spending by 1% of GDP is no big deal. It has no impact on revenues for example
  • He then cannot nominate by how much he wants the public sector to detract from Growth
  • His policy would lead to either a slowdown or a recession and just remember we are slowing down at present
  • He is not aware of advice from both the OECD and IMF on fiscal policy
  • Finally he has a very thin skin as he delete comments he cannot or will not answer.

Postscript

Samuel J at Catallaxy has also written something on the budget so breath-taking ignorant on simple fiscal policy I wonder how it ever got to air so to speak.

I will simply say no matter who was in government they couldn't possibly post a surplus ( because of slowing nominal GDP growth) and you would slow the economy even more if you tried.



Have family coming over so I might do something tomorrow.

all the best