My Reaction to Gillard’s Luna Park Speech

Most of you should be familiar by now that I primarily blog over at Modern Money Mechanics on the MMT framework which is the operational framework for any modern fiat currency for a sovereign currency that freely floats on the foreign exchange.

Based on my understanding of these I live tweeted the following during the speech to the Sydney Institute.

    1. Laughing at her cries for a surplus by 2012/13 – think of the unemployment it will create

    1. The unemployed aint currently scarce, there’s 490 000 of them + those underemployed Ms. Gillard

    1. So anyone that can’t get a job should go work in the mines Ms Gillard #abcnews24

    1. Sounds like Abbott with under 30s

    1. Gillard expecting to ride on the forthcoming commodity bubble like Howard before her on the previous one #abcnews24

    1. The GST is unnecessary Ms. Gillard #mmt #abcnews24

    1. If you saw the human faces behind unemployment you would understand a surplus/defict is an outcome not a policy tool #abcnews24

    1. Finally something sensible, if you don’t give the unemployed an entry level job #abcnews24

And in my view the budget was just as bad. Just quickly Gillard summed up Wayne Swan’s budget like this:

Tuesday night’s Budget reflects the values of the Gillard Labor Government – we believe in getting more people into work and training them for more rewarding jobs. It means national prosperity can reach more lives, in more corners of our patchwork economy.

My response was: –

but you haven’t created any jobs and nor has the private sector as indicated by today’s fall in participation rate therefore you are wrong. You can retrain people as much as you like but if the jobs aren’t there it is a waste of time. Superficially your unemployment rate looks good because of that fall in participation.

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