Well, lookie here. While the U.S., Australia and Japan spray cash in every direction to "stimulate" their economies, New Zealand has a novel idea: Why not grow one's way out of recession?
Prime Minister John Key declared yesterday that "during this global downturn, we can work to improve the performance of our economy relative to other countries, and we can emerge better off." He then announced a package of regulatory reform and tax initiatives aimed at making it easier for companies to do business -- and keep Kiwis employed.
Now I suppose there are some people silly enough, or just not interested enough, to blandly assume that these 'stimulus' plans are really about 'restoring the economy'. Neither Rudd nor Obama are among this group. They know what they're about, and it's not about restoring your economy. It's about expanding their power over your economy.
These 'stimulus' plans will not stimulate anything. Infrastructure programs can take years to get off the ground. By that time things will have picked up and all the government make-work schemes will be competing for labour and holding back the recovery. If you really want the economy to be stimulated, and avoid a recession the only way is to do what the Kiwis are doing, and what Howard/Costello did in similar circumstances. Rudd knows this. Anyone with half a brain knows it. But that is not what Rudd is about.
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