Comments on: False economies http://larvatusprodeo.net/2007/10/15/false-economies/ Life, Culture and Politics from BrisVegas Tue, 14 Feb 2012 04:16:54 +0000 hourly 1 http://wordpress.org/?v=3.3 By: adrian http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71771 adrian Tue, 16 Oct 2007 08:28:13 +0000 http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71771 I'm sure that you can figure it out for yourself BBB. I’m sure that you can figure it out for yourself BBB.

]]> By: clarencegirl http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71770 clarencegirl Tue, 16 Oct 2007 08:00:26 +0000 http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71770 Like 21,999 other people in my area I am as poor as the proverbial church mouse. Howard's tax cuts will deliver me not one brass farthing. If these cuts contribute to inflation they will actually cost me money as the cost of living rises. Like 21,999 other people in my area I am as poor as the proverbial church mouse.
Howard’s tax cuts will deliver me not one brass farthing.
If these cuts contribute to inflation they will actually cost me money as the cost of living rises.

]]> By: Bingo Bango Boingo http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71769 Bingo Bango Boingo Tue, 16 Oct 2007 02:52:56 +0000 http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71769 Where are these 'national institutions', Nahum? BBB Where are these ‘national institutions’, Nahum?

BBB

]]> By: Paul Burns http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71768 Paul Burns Mon, 15 Oct 2007 23:59:14 +0000 http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71768 On a disability pension. Don't get a tax cut. On a disability pension. Don’t get a tax cut.

]]> By: Nahum Ayliffe http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71767 Nahum Ayliffe Mon, 15 Oct 2007 15:13:33 +0000 http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71767 Yes surely there is an argument for Rudd to come out and say here's Howard being desperate again. He's had your money for 11 years and hasn't invested a cent in national institutions. Now he's looking down the barrel of defeat and he's bribing people to vote for him. The only problem is that it is still geared to the upper end, the majority of whom already vote for him. Perhaps he is counting on the perceived benefit of tax cuts among battlers, who might forget about the looming interest rate rise. On Kym's post above, I mentioned also that tax cuts do not add any capacity to the economy. And higher interest rates are the reality of a near capacity economy. And it's either interest rates or inflation. Choose your poison. The question is whether the promise of money (the tax cuts don't take effect immediately) will still stimulate consumer spending and goad the Reserve to take action. Yes surely there is an argument for Rudd to come out and say here’s Howard being desperate again. He’s had your money for 11 years and hasn’t invested a cent in national institutions. Now he’s looking down the barrel of defeat and he’s bribing people to vote for him. The only problem is that it is still geared to the upper end, the majority of whom already vote for him. Perhaps he is counting on the perceived benefit of tax cuts among battlers, who might forget about the looming interest rate rise.

On Kym’s post above, I mentioned also that tax cuts do not add any capacity to the economy. And higher interest rates are the reality of a near capacity economy. And it’s either interest rates or inflation. Choose your poison.

The question is whether the promise of money (the tax cuts don’t take effect immediately) will still stimulate consumer spending and goad the Reserve to take action.

]]> By: wbb http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71766 wbb Mon, 15 Oct 2007 14:48:04 +0000 http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71766 Certainly room for improvement - but it has to look and smell like a fistful of dollars nonetheless. Howard's ploy will set people to expecting something tangible for their vote. Plasma screens all round is the Liberal's policy. What a statesman. Certainly room for improvement – but it has to look and smell like a fistful of dollars nonetheless. Howard’s ploy will set people to expecting something tangible for their vote. Plasma screens all round is the Liberal’s policy. What a statesman.

]]> By: Kim http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71765 Kim Mon, 15 Oct 2007 14:30:19 +0000 http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71765 Can't see why he can't neutralise bad tax policy with good tax policy cheaper, wbb, as I'm arguing in this new post: http://larvatusprodeo.net/2007/10/16/false-economies-ii/ Can’t see why he can’t neutralise bad tax policy with good tax policy cheaper, wbb, as I’m arguing in this new post:

http://larvatusprodeo.net/2007/10/16/false-economies-ii/

]]> By: wbb http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71764 wbb Mon, 15 Oct 2007 14:28:21 +0000 http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71764 I think he can play the fiscal manager as well as give people what they really want, Kim. People fear interest rates and unemployment; they lust after tax cuts. Rudd needs to and can attend to both passions. There is so much money here to play with. And half the Liberal's cuts are on the never never anyway. Tax cuts are the last thing this country needs. But the first sign the polls show tax cuts are the issue - Rudd should neutralise it. I think he can play the fiscal manager as well as give people what they really want, Kim. People fear interest rates and unemployment; they lust after tax cuts. Rudd needs to and can attend to both passions. There is so much money here to play with. And half the Liberal’s cuts are on the never never anyway.

Tax cuts are the last thing this country needs. But the first sign the polls show tax cuts are the issue – Rudd should neutralise it.

]]> By: Kim http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71763 Kim Mon, 15 Oct 2007 14:03:00 +0000 http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71763 <blockquote>The tax cuts have to be matched for impact</blockquote> Rudd's consistently said that he will be <b>more</b> fiscally responsible than the Coalition. If they're not matched, then he can play the "interest rates" card as well as establish a point of difference on priorities.

The tax cuts have to be matched for impact

Rudd’s consistently said that he will be more fiscally responsible than the Coalition. If they’re not matched, then he can play the “interest rates” card as well as establish a point of difference on priorities.

]]> By: wbb http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71762 wbb Mon, 15 Oct 2007 13:51:54 +0000 http://larvatusprodeo.net/2007/10/15/false-economies/#comment-71762 The tax cuts have to be matched for impact. And with $34 billion to play with Rudd's got endless options to take. Keep (or better, increase just for the hell of it) the low wage cuts - and go some way towards the top tax rate cut. No big deal, anyway. These are not large numbers over the time-frame. If world economy keeps ticking these cuts will pay for themselves - and if it all implodes then all bets are off anyway. We are talking non-core promises here. Peter Kemp's right though - the Libs are desperate if they have to blow their one and only big idea on the very first day. Yes, Rudd should take his time - let the tension build - let 'em wait - and then match it with a yawn and an air of gravitas rather than the sweaty tugging at the nation's elbow with which Howard and his lofty mate announced this off the back of a truck "policy". The tax cuts have to be matched for impact. And with $34 billion to play with Rudd’s got endless options to take. Keep (or better, increase just for the hell of it) the low wage cuts – and go some way towards the top tax rate cut.

No big deal, anyway. These are not large numbers over the time-frame. If world economy keeps ticking these cuts will pay for themselves – and if it all implodes then all bets are off anyway. We are talking non-core promises here.

Peter Kemp’s right though – the Libs are desperate if they have to blow their one and only big idea on the very first day. Yes, Rudd should take his time – let the tension build – let ‘em wait – and then match it with a yawn and an air of gravitas rather than the sweaty tugging at the nation’s elbow with which Howard and his lofty mate announced this off the back of a truck “policy”.

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