Professor Neal Stoughton, head of Banking and Finance at the Australian School of Business at the University of New South Wales, has come out in support of my argument of several weeks ago that the stimulus programmes proposed by US and Australian governments are likely to do more harm than good.
Well, he didn’t specifically name me, but anyway…
Basically what he says is that what is needed is not simply increased spending, especially if that puts us further into debt, but increased employment and increased production. Of course. That’s exactly what I said. This Stoughton’s obviously a pretty bright chap.
“When you get into situations where government makes decisions where to spend money rather than leaving it up to the private sector, it usually is on the basis of influence and politics rather than the basis of sound economics.”
Essentially, he says, the government has neither the information nor the skills needed to direct tax payer funds to where they will do the most good to improve employment and production, so they would be better off leaving the money in the hands of tax payers, who are already employing, working, producing.
Of course, Mr Rudd has a different perspective, one he feels quite strongly about. Though perhaps not as strongly as he feels about having his food exactly as he wants it.
So to be fair and balanced, I have written a poem about Mr Rudd’s achievements at the G20 Summit.
‘Oh gosh, oh golly, gee, oh heck!
All our economies are wrecks.’
The blokes at the G20 sighed
As into their champagne they cried.
‘If only there was someone who
Could tell us all just what to do’
For cold despair had grasped the meeting
Despite Obama’s balmy greeting.
But at that moment – oh what rapture!
A joy no human words could capture.
For in a heavenly flash of light
The mighty Kevin hove in sight.
‘Now listen chaps,’ he sternly said.
‘You’ve stuffed it up, you’re in the red.
But if you promise to be good
I’ll tell you what to do you should.’
(He sounds like Yoda in disguise
Because he’s so supremely wise.
And though to mention I’d forebear
There is a certain likeness there.)
‘You chaps have all spent far too much
You’re with your people out of touch.
So all the debts that cause you worry
You must get rid of in a hurry.’
Delegates the world around
Were stunned and rooted to the ground.
Economists all said with smiles
‘He’s cleverer than us by miles.’
‘Oh Kevin of the mighty mind
And equally enlarged behind
Now we know just what to do
Please tell us how to do it, do.’
The mighty Kevin’s eyebrows lifted
As is quite right in one so gifted
‘You chaps are pretty slow I see
But I’ll be kind, because I’m me.
To get rid of the debts you had
you must go out and spend like mad.’
The delegates all gasped with glee
‘We were all blind, but now we see.
By our advisors we were dudded
But all is clear now we’ve been Rudded.’
By which they meant enlightened then
By thoughts beyond the ken of men.
Then Kevin to the sunset rode
With Caty in his blanket stowed.
And the G20 ended well
Between the nations things are swell
No more economies asunder
Thanks to the PM from Down Under.