The dictum that “a little knowledge is a dangerous thing” rings very true in the run-up to the federal budget. Limited understanding of macroeconomics, in particular, has been evident from the mantra that the economy needs sizeable fiscal stimulus in the form of increased government spending to boost aggregate demand.
High school and first-year university students of economics everywhere learn that hiking government spending counters recessions and lowers unemployment, as originally proposed by John Maynard Keynes during The Great Depression of the 1930s.
Already a subscriber? Log in
Get 10 issues
for $10
Subscribe to The Spectator Australia today for the next 10 magazine issues, plus full online access, for just $10.
- Delivery of the weekly magazine
- Unlimited access to spectator.com.au and app
- Spectator podcasts and newsletters
- Full access to spectator.co.uk
Comments
Don't miss out
Join the conversation with other Spectator Australia readers. Subscribe to leave a comment.
SUBSCRIBEAlready a subscriber? Log in