Who can you trust with the economy?? (1 Viewer)

[Sarah]

Although Australia has a relatively low CAD compared to other OECD countries, the liberal government in election campaigns kept saying how under a Howard/Liberal government, Aust debt levels were significantly reduced. And yet, what most people don't know is that we do have a low CAD in contrast to other OECD countries.

Maybe it wasn't necessarily measures that Keating undertook, but economic reforms under the labour government in the 1980s to reduce protectionism. These include deregulation of the finance industry, automobile industry.

And to those people concerned with a high CAD, a high CAD is not necessarily bad. You need to look at the composition of the CAD and see where the deficit is coming from. Like if your importing goods which are used to produce other goods (can't remember the economic term for it), then it's not so bad coz it's an indication of growth in whatever industry it's from.

If i don't make sense, it's because i'm tired.

 

[absolution*]

Pffft. And all this time i thought neo_o was good at economics. Looks like nothing stands in the way of political side-lining.

 

[ohne]

Yep...thats the point debts are up...


interest rates are low houses become more expensive

interest rates are high houses become cheap and so on...

Larg debt is bad since low interest rates dont last forever. When they do go up people may be a little bit streched.

as neo points out there is a difference between PUBLIC and PRIVATE DEBT

if PRIVATE individuals or companies wish to borrow too much money and screw themselves that is THEIR problem

is PUBLIC institutions (government) wish to spend more than they earn and borrow this is ALL OF OUR problem

personally, i am a saver. i will never own a credit card and i never spend for the purpose of spending. almost all of my earnings are saved. if all of us took this approach the CAD would NOT be a problem

the difference between us and the united states is we have very irresponsible individuals and a responsible government the united states has irresponsible individuals and VERY IRRESPONSIBLE government

 

[Not-That-Bright]

Yes because most economists, investors believe our economy has gone down the shitter.

 

[Nick]

anyway, nick wanna tell us why u feel howards done a bad job with the economy?

well sadly the fact is i'm not an economist

and neither are any of you guys

so there's not much point trading rival newspaper articles about it

uni/school students giving opinions on stuff like this is about as useful as me pointing out spelling mistakes and disputing rival arguments by quoting them and adding a sarcasm smiley

 

[Generator]

uni/school students giving opinions on stuff like this is about as useful as me pointing out spelling mistakes and disputing rival arguments by quoting them and adding a sarcasm smiley

The only problem is that far too many adults feel that they know what they are talking about yet they appear to know even less than we do. What a country.

Edit: We should all be discussing it as often as possible. It isn't as though we all need a degree/experience in the field to debate what we know.

 

[loquasagacious]

Ah but ohne if everyone did that our economy really wouold be in the shitter - it is strong spending and consumption which has staved off recession.