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 deletes comments he cannot or will not answer.
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