‘Jim Chalmers has got to be a little bit worried’: Reacting to the Federal Budget
One of Australia’s top economists has weighed in on the Federal Budget announcement, saying Treasurer Jim Chalmers will be in the hot seat for some time.
“It’s a budget that really doesn’t change the macroeconomic picture all that much,” economist Stephen Koukoulas said, of his first impressions of the Federal Budget.
Koukoulas made these comments on the Fear & Greed podcast on Wednesday morning, where the ‘election budget’ was discussed.
Taking a different view … the Federal Government should ALWAYS run a small deficit (yep, they print the money) because they are the funds that we as tax payers don’t have to pay for essential such as hospitals, health, schooling, defence etc. In fact, running at a surplus means that they are not spending the money to provide the services we desperately need.
Printing (say) 0.5% of the GDP would allow for progress and development without damaging the economy one iota … sort of like we borrow from the bank to buy a house and a better life-style. Also having modest amounts for money in the pocket for the average person to spend on essentials helps the economy function, however some pundits see it as inflation.