Comments on: Debt for Development Makes Sense say 21 Prominent Australian Economists http://clubtroppo.com.au/2009/06/03/debt-for-development-makes-sense-say-21-prominent-australian-economists/ Fearlessly dispensing political, legal and economic analysis (and some whimsy) since 2002 Fri, 25 May 2012 13:31:17 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Tel_ http://clubtroppo.com.au/2009/06/03/debt-for-development-makes-sense-say-21-prominent-australian-economists/#comment-358409 Tel_ Tue, 09 Jun 2009 23:29:04 +0000 http://clubtroppo.com.au/?p=8584#comment-358409 Seemed related to the topic: <blockquote> So, despite trillions in public spending, we are short millions of jobs, are rapidly sliding further into debt, are losing our capacity to borrow at a manageable cost, and are producing fewer of the goods that will generate real wealth. The remarkable payments to the financial services sector and the auto industrya quarter-trillion-dollar investment in AIG and GM alonehave produced no structural change at all. We are rebuilding the same edificefragile as before. </blockquote> http://www.slate.com/id/2219599/ (Eliot Spitzer) I think he is overstating the gloominess but his basic point remains sound. Then again, maybe the Obama factor will turn things around in a year or so (there's maybe a chance of that happening). Seemed related to the topic:

So, despite trillions in public spending, we are short millions of jobs, are rapidly sliding further into debt, are losing our capacity to borrow at a manageable cost, and are producing fewer of the goods that will generate real wealth.

The remarkable payments to the financial services sector and the auto industrya quarter-trillion-dollar investment in AIG and GM alonehave produced no structural change at all. We are rebuilding the same edificefragile as before.

http://www.slate.com/id/2219599/ (Eliot Spitzer)

I think he is overstating the gloominess but his basic point remains sound. Then again, maybe the Obama factor will turn things around in a year or so (there’s maybe a chance of that happening).

]]> By: Jacques Chester http://clubtroppo.com.au/2009/06/03/debt-for-development-makes-sense-say-21-prominent-australian-economists/#comment-358390 Jacques Chester Mon, 08 Jun 2009 13:17:38 +0000 http://clubtroppo.com.au/?p=8584#comment-358390 Question: 1. Australia has the lowest public debt ratio in the OECD. 2. Australian politics has a 'debt phobia'. Why is the first one considered separately from the second? It seems to me that they are directly related and cannot be disentangled in the world of <em>realpolitik</em>. Question:

1. Australia has the lowest public debt ratio in the OECD.
2. Australian politics has a ‘debt phobia’.

Why is the first one considered separately from the second? It seems to me that they are directly related and cannot be disentangled in the world of realpolitik.

]]> By: Andrew Norton » Blog Archive » More weak conflict of interest claims http://clubtroppo.com.au/2009/06/03/debt-for-development-makes-sense-say-21-prominent-australian-economists/#comment-358382 Andrew Norton » Blog Archive » More weak conflict of interest claims Sun, 07 Jun 2009 10:21:34 +0000 http://clubtroppo.com.au/?p=8584#comment-358382 [...] Leigh was one of 21 economist signatories to an apparently Nick Gruen-iniatiated open letter (open op-ed?) defending government debt as an appropriate policy response to the GFC. In broad terms, it supports [...] [...] Leigh was one of 21 economist signatories to an apparently Nick Gruen-iniatiated open letter (open op-ed?) defending government debt as an appropriate policy response to the GFC. In broad terms, it supports [...]

]]> By: Nicholas Gruen http://clubtroppo.com.au/2009/06/03/debt-for-development-makes-sense-say-21-prominent-australian-economists/#comment-358344 Nicholas Gruen Thu, 04 Jun 2009 23:11:08 +0000 http://clubtroppo.com.au/?p=8584#comment-358344 Peter Martin in Today's Age says that we said that net debt would stay below 14 percent of GDP. We didn't. We said "On current Treasury projections, which seem as plausible as any (though like all such forecasts, they are only best guesses), net debt will stay below 14 percent of GDP." In other words, we think Treasury forecasts are <em>bona fide</em> and as good as anything going. Peter Martin in Today’s Age says that we said that net debt would stay below 14 percent of GDP. We didn’t. We said “On current Treasury projections, which seem as plausible as any (though like all such forecasts, they are only best guesses), net debt will stay below 14 percent of GDP.” In other words, we think Treasury forecasts are bona fide and as good as anything going.

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