In da Know

Australia is about to spend all the money it has in the bank to do the ‘right’ thing in the wake of the economic crisis. The Howard Government banked a sizable surplus during the oft referred to ‘good years’ (or years of Chinese expansion in mineral use) when greed and profiting was rife. Stories of exorbitant rents and house prices in the money rich mining towns made millionaires of some and paupers of others.

The Rudd Government’s $42 billion economic stimulus package is quite a deal for some. Who will be the true winners and losers. Money is a bit like water - you really can’t make any more of it only redistribute what can be accessed. There is of course a multiplier effect and that is what the Aussies are hoping for.

The only really experienced person in financial managment on this scale is the Opposition Leader Malcolm Turnbull, ( I suppose the PM having a millionaire wife gives him some pull but after all he was only a public servant and a diplomat for most of his political life - not a resounding claim to economic wisdom). The mantra of spend yourself out of a recession is not a new one. The difficulty is what exactly will the money be spent on.

This is where the politician starts to sneak in. Money for schools sounds more like an election slogan than a war plan.

What about some truely big visions.  Infrstructure, infrastructure, infrastructure…

What about the coal wharves in North Queensland? What about some manufacturing plants for plasma screens? What about a railway line across inland Australia? What about flooding the inland from the north - a sea canal? What about solar and nuclear power stations in the centre of Austalia and a massive power grid to allow our own peculiar versions of Las Vegas to spring up? What about a satellite launching facility? What about a massive expansion in connectivity with limited capping? What about a truely national library connected to each home? What about tourist infrastructure - cruise berths,  networks of backpacking hostels across the inland? What about an airship transport system? What about solar water recycling in northern Western Australia to supply the whole nation with a water grid. Green the inland!

I am sure that all our underfunded  schools would like a new assembly hall and some computer equipment and power point projectors (items which State Governments should have provided anyway).

It is in trade education that we should be spending - we need Australan trained builders, plumbers, technicians, electricians. Spend the money building a massive technical education base for the nation. (Not going to happen guys!)

Will these things proposed make the recession go away - nope? Will it increase Australia’s productivity - nope?  Will it make us stronger at the other end of this disaster ready to take up all the opportunities as they appear - nope?

Will it empty the bank for the next 100 years - yep? Will it increase taxes to fill it up again in 5 years - you betcha?

I think some serious thought and discussion would be wise at this time and political grandstanding will just curse us all for the next decade when we could have done something really useful with 40 billion dollars! (Of course there are elections coming up in the States and so once again we waste a great opportunity to do something for this nation.)

I might be completely wrong but I am going to spend a bit of time reading and thinking about it - someting I am afraid our political masters do not want to encourage.

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