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Rudd on the road to disaster : Comments
By Henry Ergas, published 3/4/2009Kevin Rudd's errors are not merely the odd concession to economic folly, they go to the core of our economic prospects.
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You are just repeating neo-liberal trash talk. Government is not a burden on society. It does not "suck away" at the common wealth. Quite the reverse, it is the ultimate source of it. New net wealth cannot be created until the sovereign spends. The private sector cannot create new net wealth, only re-distribute it. Those repeating the commonly heard version of this (goverment cannot create wealth, only re-distribute it) have it exactly backwards!
The annual government cost you speak of represents (at the federal level) the flow of money into the economy. It does NOT represent money taken out.
Public and private sectors are not opposites Sam, they are two sides of the same coin, the federal budget functioning as a mirror-reverse of our household budgets. This is the nature of our modern monetary economy.