The Forum > Article Comments > Living within our means: lessons from Cyprus > Comments
Living within our means: lessons from Cyprus : Comments
By Julie Bishop, published 21/3/2013A 'cure' for government profligacy in one small nation threatens the international banking system
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It might be helpful to consider some examples.
What about a public works program for the government to build artificial reefs on every beach in Australia? This constructive activity building infrastructure would provide point-break quality surf instead of beach-break quality surf, which is more amenable. Would this justify stimulus policy funding? If not, why not?
How about a railway through the Great Stony Desert? Obviously the data don’t exist because it hasn’t been done yet, so you’ll have to answer by reference to your theory.
But hang on. The data don’t exist for any of the projects before the government funds them, do they, because the whole point of the exercise is that *but for* the funding, they wouldn’t be undertaken?
And since your theory is that the data prove your case, doesn’t that prove your theory wrong even in its own terms? If not, why not?
P.S. The expression “aggregate demand” and “boosting demand” I cited are from the OECD document and are pure Keynesianism. They contradict you in claiming that theory is not used. If you’re not using aggregate demand or boosting demand as the criterion, you still haven’t said how you know whether the policies are justified. An inner voice, or unspecified data, told you so perhaps?
PPS None of those documents addresses itself to *whether* the stimulus policies produce a net benefit to society, rather than merely looting A to satisfy B. They only try to measure *how much* the governments spent, and how much benefit it was. But if this is not so, please refer us to the specific data that you say make your case.
Obviously if your argument takes the form of sending me on an errand to construct your argument for you, it means you’ve lost. If you can’t show evidence and reason, you should have the decency to concede the general issue.
SPQR
Who is the Wicked Witch of the West, by the way?
If you do as Poirot suggests, you will find a series of threads in which ...
(cont.)