Actually Pelican I think the government is doing just what you suggest.
The $200 billion the government is budgeting for is in fact pixel
money that will be paid for work.
Except of course the give away that is currently in the mail.

An unknown slab of that will be transferred almost immediately to China.
WE get the government we deserve.

Pelican

I am no economist either, but this doesn't mean we are banned from thinking through this near impossible situation.

I understand where you are coming from - by investing in our infrastructure, Australia can prepare for the future. The money is not so much as 'just printed' as virtually borrowed from the future. While a version of this is what got the USA and hence the rest of the world into this mess. The difference is that something would actually be created (homes, schools, rail, hospitals etc) than just dollars which only exist in the imagination of the finance industry.

I found the following report and you might find it interesting too:

http://wotnews.com.au/like/what_can_rudd_do_to_restore_a_healthy_economy/3092536/

I would rather see money poured into something substantial than handouts to families.

Fractelle,
Here, here Good site too.

Pelican and all
Thing went south with the UK company law of 1860's when limited Liability companies were created...while it facilitated investments it also unleashed the dark side of human nature (greed).

Add to that the disconnect with ACTUAL tangible value was removed with the demise of the Gold standard (i.e. $ = gold). From then on it’s all notional value this means the market determines value. To me there in lies the problem I simply don’t trust the morality or the emotional nature of the market.

I see something inherently wrong with facilitating
Corporations to chase exploitation of lesser laws (legal and environmental)
Support corrupt regimes
Exploitation of the vulnerable (both the misery of the 3rd world and ill-equipped poor and under sophisticated [dodgy deals and sub prime loans]. Caveat Emptor is an inditement/excuse not a moral justification.
If in a 3rd world country the business should improve the local circumstance not retard or exploit it.
All in the name in the name of profit and (corrupted/dysfunctional) Capitalism.

More parochially speaking and following the article allowing our country to cease being self sufficient. In this we are surrendering our futures to the vagaries of the market and the Dickensian attitude of the rich get richer and the poor? Who cares the market doesn’t. This has nothing to do with equality but every thing to do with equity and humanity

This is an ideal time for Australia to claw back some of the balance by investing in this nations future not only infrastructure but in small entrepreneurial green solutions and sciences.

Most employment (the back bone) is in small businesses.
There is no one golden bullet solution or will it come from huge Corporations defending (perverting the markets i.e. clean coal [sic]).
Our salvation will come from the entrepreneurial desperation of small business.
Capitalism was never conceived to cope with the contra interests of international and mega corps.

>>Capitalism was never conceived to cope with the contra interests of international and mega corps.<<

Right on Examinator.

Competition is impossible between mega-monopolies. Something of an oxy moronic situation.

What we have now is the opportunity to support small business and the emerging new technologies eg, alternative energy and let the global monopolies go the way of those other overinflated beasts; the dinosaurs.

Of course there are those who blame the arrant greed of low income people who had the temerity to want their own homes - hmmmmm has Col Rouge been black-banned?

For some "funny because its true" watch Jon Stewart:

http://www.thedailyshow.com/video/index.jhtml?videoId=220252&title=CNBC-Gives-Financial-Advice

Money has to come from somewhere, so someone has to print it. It's the details of who controls the amount printed, and the conditions under which it gets printed (or otherwise created for use, i.e. electronically) that count. Those actually wondering about this may find this piece of interest - Global Financial Meltdown: Forces beyond our control, or the greatest scam ever? http://www.rudemacedon.ca/greatest-sting-ever.html - in which the way money is currently created is shown to be the very source of all of our current problems, and then some.