Hi KK, lets analyse your little bit of logic here... lets see why my understanding of economics is different to yours. Party politics removed, lets just talk economics.
kk said...
So you need a goverment that gives employers (you may call them greedy bosses) confidence to do business and employ peole so that they can pay taxes and pay off this goverments current debt.. Last time I did a quick calculation it was around $40,000 per tax payer. At least it's not as bad as Greece where it is $250k per tax payer, but we have gone from a credit of ?? (can't remember the surplus the lib gov left) to a debt of?? in what? 4 years... can anyone here speak greek (took them 20 years)
It seems like you are arguing that bosses need to have confidence to do business by having a government with no debt or even a surplus. Is that correct? Money in the bank and all that good stuff?
Okay, so do you understand where that debt or surplus comes from? Of course you do, the income is from taxation and the expenditure is funding of projects, welfare, the public service and infrastructure.
So, the same or more tax and less spending equals a surplus yeah? (Good) The same or less tax and more spending equals a deficit yeah? (in debt = Bad!)
Okay, so if the government decides to run a budget surplus, and takes more in taxes than it spends in the economy, the amount of cash in the economy dries up. People have less money to spend, more people are unemployed, and taxes are higher.
On the other hand, a government decides to run a deficit budget and spends money like its going out of style, taxes the same or less and spends more than it did in previous years. It spends it on projects, welfare, the public service and infrastructure. There is nothing else to spend it on, so it has to go to one of those. People have more money to spend, there are more people fully employed, and there might even be tax breaks.
Tell me again which environment you would feel more confident in and why.
As a business owner, do you prefer it when other people have more money or when they have less?
As a business owner in retail, do you prefer it when people have more money?
As a business owner in construction, do you prefer it when the government has more money to spend and is handing it out willy-nilly to first home buyers, insulation installers, solar panel installers, and for construction projects?
As a public servant, would you feel more confident in your job if you know the government is adding more jobs to the public service or less? Would you be more likely to build a new house if there were more public service jobs or less? Would you buy more clothes if there were more public service jobs or less?
If you were a business owner in retail or construction, would you prefer that the guy in the public service was feeling more secure or less?
There are no tricks to these questions. I am just trying to understand where we see things differently.
- I am back now.
