Shadow Minister and Hasbeen
You and probably many others do not understand how Howard and Costello attempted to operate the Australian economy in an unsustainable area of the Fiscal Policy Space so aptly described recently by Professor Stephanie Kelton in an address to the Fields Institute in Toronto Canada. Her talk and the accompany slides are readily available by clicking on her name on the right hand column at; www.neweconomicperspectives.org
and following the links to the talk or the slides. Slides 48-54 cover my argument.

The main point is that that the three sector balances that are used to describe an economy add (sum) to zero in any accounting period.

The sustainable fiscal space is where the private sector is continually accumulating savings and if the Current Account is in balance or deficit (the situation in the Howard era) that happy situation can only be achieved if the Government Sector runs a deficit. As the UK Treasury economist Wynne Godley wrote, "An increase in private debt relative to income can go
on for a long time, but it cannot go on forever.” (Godley, 2000)

It therefore follows that Howard and Costello were very poor economic managers and were responsible for the more extensive deficit choices forced on the Rudd/ Gillard cabinets.

The economic and political discussions at OLO would improve if those making comments understood some economic facts of life.

Mr Abbott paid tribute to Kevin Rudd saying his
retirement is a "significant event in the history
of Parliament."

"To lose someone who has been one of the figures in
the Parliament and one of the big figures in the life,
the public life of our country over the best part of
two decades..."

"As a political opponent, but as someone who has known
the Member for Griffith quite well for a long time, I salute
him and I wish him and his family all the best for the
future and I express my confidence that one way or another
he will continue to serve our country."

Mr Abbott also paid tribute to Mr Rudd's apology to
Indigenous Australians calling it, "something to crown an
amazing public life."

"Much as I admire and appreciate and put on a huge pedestal
his immediate predessor (John Howard), in this respect at
least, he had lacked the imagination to grasp that opportunity
and the Member for Griffith, Kevin, he had the decency to see
that here was something that needed to be done."

"He did it with courage, with decency, compassion, and that
alone is an extra-ordinary achievment."

Further heartfelt tributes continued from all sides of
politics. From Malcolm Turnbull, Bill Shorten, Anthony Albanese,
to name just a few. It appears that at least some people believe
in the old adage of not kicking a man when he's down

Paul,

Your comment "Tony Abbott and co won government by default." is partially true, Both Labor and the Greens contributed mightily to the election of Abbott by shafting the voters with a tax they didn't want and were promised they wouldn't have. Both parties shed vast numbers of voters who moved to the coalition.

Abbott also said that there is no diplomatic posting to be created for Dudd, probably as there is no country sufficiently despised.

I'm sure you are right Foyle.

Which one Howard or Costello had the gun at KRuddy's back forcing him to stuff the illegal boat people system. Do you know which one forces him to try to hand our future to the UN, or try to get us into the EU carbon trading scheme.

Do you think little Julia did the school hall scheme without telling him.

I am surprised you still think quoting academics at us, those people who want to believe global warming is caused by CO2, as if their ideas make sense.

We have long known that these people should be given monopoly money to play with in their ivory towers, & kept locked up where they can do less harm.

Paul thinks we will turn to the Greens.
Wishful thinking; People are already realising that the Greens are
a lifeboat crewed by refugees from the Communist Parties and carrying
passengers that are the ideological descendants of Marx, Lenin and company.
The environment is what they argue about, not what they believe.

The cynical Whatshername Galah'd (Obama's pronunciation) was worse with her gender and class wars.

Amazing how Fabian socialist 'Progressives' demand million dollar homes for themselves.