Richard Denniss destroys Depressionberg

Richard Denniss is one of Australia’s best economists. This little video captures everything that was wrong with Josh Depressionberg’s economy coming into the crisis:

Saul Eslake chimed in:

The other economist who gave evidence during the Senate committee’s first session on Thursday was former ANZ chief economist Saul Eslake.

Mr Eslake said talk of a V-shaped recovery was fanciful and government would need to provide ongoing support for a prolonged period of time.

…if you look past the definitional issues associated with the headline unemployment rate, and focus instead on the number of people who are receiving JobSeeker, then that gives you an unemployment rate of 12 per cent.

Government must support the incomes of these people beyond September to prevent the economy falling off a financial cliff, Mr Eslake said.

“The scenarios used by the Parliamentary Budget Office in their June 5 report, on medium-term fiscal projections, show that the level of real GDP won’t return to its pre-pandemic 2018-19 level until the 2021-22 fiscal year,” Mr Eslake said.

“And even then, the level of real GDP will still be 10 per cent below where it was projected to have been in that year in the [government’s] MYEFO, published in December last year.”

Mr Eslake said the figures underscored the point made by Reserve Bank governor Philip Lowe when he last appeared before the Senate select committee: “That we’ve got to keep the fiscal stimulus going until recovery is assured”.

…Mr Eslake said interest rates are so low at the moment that the federal government can borrow billions more without putting the federal budget in jeopardy.

The Kouk appeared as well to make similar statements though why he was invited remains a mystery given his incoherent response to the virus. Early on, he blasted the decision to implement a travel ban on China:

He then called for the travel ban to be lifted on the eve of global disaster:

  

He also played down the economic impacts:

Next, Mr Koukoulas slammed into reverse gear, warning of widespread economic damage from the virus and demanding massive stimulus:

    

Best to ignore Kouk. The others make consistently more sense.

David Llewellyn-Smith

Comments

    • PaperRooDogMEMBER

      Must have learnt it from Xi via those students he’s batting for. 😉

  1. No not ignore as idiots are dangerous. Call out teh idiots as you have done and ideally this one (kouk) will never be consulted again.

    • Cookie Cutter

      you misunderstand, totally. They are not idiots, they are saying what their backers tell them to.

  2. BabundaMEMBER

    He got an invite because he’s very well connected in APH. He probably begged for it – trying to restore his shattered reputation

  3. Serious Person

    This country will be lucky to see unemployment below 7% for the rest of this decade.

    The LNP wouldn’t know how to stimulate an economy if their life depended on it. Forget about foreplay .. they just keep thrusting their limp deregulation and lower taxes up whatever hole they find, ignore the (lack of) friction, and roll over and fall asleep as soon as they’ve hit their payload.

    It’s all part of the neoliberal give and take. You give, they take.

    If you didn’t get to come, then it’s not their responsibility to get you lubricated. Play with your own damn clitoris. Take responsibility for your own orgasm.

  4. Jumping jack flash

    They just refuse to understand it and it is remarkably simple.
    This is not the time to get all responsible and measured. This is the time for action and knee jerking!

    All they need to do to understand what is happening is to extend the debt growth line starting around 2000 up until 2006, extend it linearly all the way through the GFC, all the way past the last decade, all the way up to now and then read off the amount of debt that we should be at.

    2000 through to 2006 was the golden age of debt. Debt grew at the fastest rate ever, far faster than at any period before or after with maybe the exception of some ever so brief times around 2010 and 2016. During that golden age we experienced prosperity. House prices were growing. Wages were increasing. Jobs were being created. Things were humming along nicely. We need to get back there, but how?

    If you extend the debt growth line you will see how much debt we are short from having a prosperous and booming economy like it was back in 2006. That figure is around 600 billion. We should be up around 3 trillion debt dollars, and all we managed to get to was 2.4 trillion. A fair effort, but that little difference is the key to economic success or failure, and we are failing hard.

    If the government was just to take on around 600 billion of debt and hand it out through various subsidies and whatever, then the people would use that to become eligible for more debt, start buying houses and cars and coffee, and the debt would grow again.

    Come on government, go hard, go households. You know the catchphrases. Now do it!