The Forum > General Discussion > Albanese A Goner in 2025?
Albanese A Goner in 2025?
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There are two ways a government can tackle a recession. One which Labor is trying, whereby government increases spending in the public sector to lessen the impact of the recession on ordinary people, generally by maintaining employment through public investment. The other which the Coalition seems to favour is whereby government cuts expenditure and does little to stimulate economic recovery, but hopes the free market will take over and the recession will end itself.
The classic example is "The Great Depression" of the 1930's. Following the collapse on Wall St, the worlds economy went into free fall, and governments did exactly what the Coalition advocates today for Australia, they took a "tighten your belts, and ride out the storm" approach. Unfortunate things didn't recover and the world economy plunged deeper into depression. It was Roosevelt in America who introduced his "New Deal" policy of increasing government spending, which ultimately helped to stimulate the American economy, and eventually the world economy. Labor is basically the "New Deal" and the Coalition is the "Tighten Your Belts" mob. I know which approach I support.