Thursday, May 07, 2009

Australia's Economy Growth in April - Poor Mr Turnbull

Well it seems Prime Minister Kevin Rudd's stimulus strategies are working. Retail sales rose 2.2% from an expected low 0.5%. Jobless rate decreased from 5.7% to 5.4% from an expected rise of 6%, and a trade surplus of $2.2 billion dollars. Interest rate of 3% is expected to stay on hold for a few months. One thing that I obtain from this data, is that a deficit strategy is a good thing. Economics 101 provides the knowledge that when a economy is in a major slowdown, government must spend to overcome a dying private sector. Such spending will nurture the private sector back to health and prosperity, in which the government can recoup revenue for potential surplus. A government that does not spend during periods we are experincing now, are doing a great disservice to their people. The conservative Liberal party leader Malcolm Turnbull must be crying in his sleep.