Economically at least, there’s real reason to be optimistic, IMO. The Liberal government’s COVID-19 fiscal action fortunately didn’t square with its usual ‘reduce spending’ program. Maybe they’re mellowing, actually assisting people by spending during harsh times such as these? [I wonder where that leaves their critique of the Rudd government’s $50 billion spend during the GFC?]
So people are beginning to understand the positives about ‘modern monetary theory’. Government expenditures can help, and deficit budgets don’t amount to the neoliberal scare that we hear about ‘the national debt’ that will have to be paid back by our children and grandchildren. It’s actually spending into the economy to positive effect. And it doesn’t have to be “paid back” at all!
And maybe it’s not my taxes ‘funding’ this government spending, after all? Maybe people are correct who say that taxes simply withdraw money from the economy to deal with latent inflation? Pity about conventional taxes on labour and capital also injecting more than twice the amount levied as a deadweight burden on the economy, though? Taxing land values/ground rents don’t do this, so why are we so slow to act on this important distinction? Australia used to do it even better than the USA did during the Progressive Era 1897 – 1920s!
Then there’s the groundswell of people who realise we need a citizens’ dividend/universal income from the nation’s net product, instead of allowing rent-grabbers to expropriate most of it? [They’re the true leaners, Joe Hockey!]
Things aren’t exactly rosy at the moment, but people are asking challenging questions about all the nonsense that’s been spouted about the way the economy works.
That can’t be bad, folks!