Wednesday, October 15, 2008

Rudd splashes on a $10.4billion economic package

Griffith University economist professor Tony Makin said yesterday the Government had acted too hastily.

"It does ring of panic to blow half the surplus in one weekend," he said. "It seems they are meeting other goals rather than simply macro-economic ones, with the issue of giving relief to pensioners around for a while.

"It would be most unusual to see a welfare-led recovery. That would be a world first."

economy was already being stimulated by last week's 1per cent interest rate cut and the sharp fall in the value of the dollar.

"If further stimulation was warranted, it would have been better coming from tax cuts and interest rate cuts, in my view," he said. "We need more public investment which is productive, unlike the consumption spending supported in this package."

the Government should have waited longer for evidence the spending package was needed.

"There's a danger they fired off half their ammunition before they've seen the enemy."

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