Joseph Stiglitz is a professor of economics at Columbia University and a recipient of the Nobel Prize in economics.
Yet another economist explains why Labor have done well why we're getting laughed at for whinging and thinking of voting out a government that has done well in tough times.
http://www.smh.com.au/comment/australia-you-dont-know-how-good-youve-got-it-20130901-2sytb.html
While other countries fell into the global recession, Australia maintained strong economic growth, low government debt and a triple-A credit rating. With this record, you might expect the federal election to be focused on how to convert the strength of today's economy into resilience for the future. But instead the political spotlight has fallen on the perceived problem of government debt, with alarming proposals to bring austerity ''down under''.
For an American, Australia's anxiety about deficit and debt is a little amusing. Australia's budget deficit is less than half that of the US and its net debt is less than an eighth of the country's gross domestic product.
Most countries would envy Australia's economy. During the global recession, Kevin Rudd's government implemented one of the strongest Keynesian stimulus packages in the world. That package was delivered early, with cash grants that could be spent quickly followed by longer-term investments that buoyed confidence and activity over time. In many other countries, stimulus was too small and arrived too late, after jobs and confidence were already lost.
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Instead of focusing mindlessly on cuts, Australia should instead seize the opportunity afforded by low global interest rates to make prudent public investments in education, infrastructure and technology that will deliver a high rate of return, stimulate private investment and allow businesses to flourish.
I was in Australia during the last federal election and noticed then that the tone of the economic debate was both far too pessimistic about the current economy and far too complacent about the risks in the future. Three years later, the obsession with public debt continues to be a distraction from the more fundamental question of how to establish sustainable long-run growth.
Rather than look through the rear-view mirror at public debt, this election should look forward to the challenge of maintaining Australia's economic success for the future.
