Comments on: Australia avoids the crisis, by luck and good management http://www.eastasiaforum.org/2009/12/23/australia-avoids-the-crisis-by-luck-and-good-management/ Economics, Politics and Public Policy in East Asia and the Pacific Sun, 12 Feb 2012 22:50:38 +0000 hourly 1 http://wordpress.org/?v=3.2 By: Lincoln Funghttp://www.eastasiaforum.org/2009/12/23/australia-avoids-the-crisis-by-luck-and-good-management/comment-page-1/#comment-87876 Lincoln Fung Tue, 29 Dec 2009 12:01:07 +0000 http://www.eastasiaforum.org/?p=8708#comment-87876 I accept that you took your hat off for the Rudd government and the Treasury with no hesitation. There is no doubt you were in line with the logic of Rudd and his Treasurer's arguments - either what they did or are doing is a nothing theory and there was not any alternatives between and beyond those two. I rest my argument, if you are not kidding yourself to believe there could not be many or any better alternatives to what they did. I accept that you took your hat off for the Rudd government and the Treasury with no hesitation. There is no doubt you were in line with the logic of Rudd and his Treasurer’s arguments – either what they did or are doing is a nothing theory and there was not any alternatives between and beyond those two.

I rest my argument, if you are not kidding yourself to believe there could not be many or any better alternatives to what they did.

]]> By: Exmondhttp://www.eastasiaforum.org/2009/12/23/australia-avoids-the-crisis-by-luck-and-good-management/comment-page-1/#comment-87685 Exmond Mon, 28 Dec 2009 04:37:34 +0000 http://www.eastasiaforum.org/?p=8708#comment-87685 Lincoln, it is very easy to be wise in hindsight. All of the evidence at the time suggested that most OECD countries were about to enter into a a fairly severe global recession. I would argue that the Rudd Government acted wisely to stimulate the economy by keynesian pump priming, as did a whole lot of other governments including China. Speed was of the essence and it may have well been a full blown recession had the spending been slowed or trickled through conventional channels. Another hugely important factor was the guaranteeing of bank deposits and wholesale funding which insulated Australian banks. All in all, I take my hat off to the Australian Government and the Treasury for their competent AND decisive handling of the crisis. Not doing anything may have been a recipe for a recession which would have left us in a far worse financial situation. It is easy in hindsight to argue that the GFC would have resolved (as it is doing) without Australia's own actions in this regard but in such a scenario, the Treasury and Australian Labor Party would have been savaged for their inactivity and probably punished at the polls. Nobody disputes the necessity for good governance and prudent, strategic management which now thankfully, the Government is in a far better position to consider and implement, with the crisis successfully averted. Lincoln, it is very easy to be wise in hindsight. All of the evidence at the time suggested that most OECD countries were about to enter into a a fairly severe global recession. I would argue that the Rudd Government acted wisely to stimulate the economy by keynesian pump priming, as did a whole lot of other governments including China. Speed was of the essence and it may have well been a full blown recession had the spending been slowed or trickled through conventional channels.

Another hugely important factor was the guaranteeing of bank deposits and wholesale funding which insulated Australian banks. All in all, I take my hat off to the Australian Government and the Treasury for their competent AND decisive handling of the crisis.

Not doing anything may have been a recipe for a recession which would have left us in a far worse financial situation. It is easy in hindsight to argue that the GFC would have resolved (as it is doing) without Australia’s own actions in this regard but in such a scenario, the Treasury and Australian Labor Party would have been savaged for their inactivity and probably punished at the polls. Nobody disputes the necessity for good governance and prudent, strategic management which now thankfully, the Government is in a far better position to consider and implement, with the crisis successfully averted.

]]> By: Lincoln Funghttp://www.eastasiaforum.org/2009/12/23/australia-avoids-the-crisis-by-luck-and-good-management/comment-page-1/#comment-87063 Lincoln Fung Thu, 24 Dec 2009 22:10:06 +0000 http://www.eastasiaforum.org/?p=8708#comment-87063 "Prime Minister Kevin Rudd and his government deserve credit for their decisive actions in dealing with the onset of the crisis." So decisive and deserving credit that for the Australian situation, they poured tens of billions of dollars worth of cash handouts, as if there were no costs with government cash handouts! So decisive and deserving credit that they have got a $43 billion NBN with no business case study and cost benefit analysis! So decisive and deserving credit that they have cash handouts to schools for JG Memorial Halls, even for those to be closed soon and some schools with perhaps one student! That was decisive, indeed, by its very definition in terms of its speed and hastiness! No question about it, good management! This should be a classical and compulsory learning material for the ANU Crawford School - and government school! A higher education institution, with such a governance height in mind, indeed! “Prime Minister Kevin Rudd and his government deserve credit for their decisive actions in dealing with the onset of the crisis.”

So decisive and deserving credit that for the Australian situation, they poured tens of billions of dollars worth of cash handouts, as if there were no costs with government cash handouts!

So decisive and deserving credit that they have got a $43 billion NBN with no business case study and cost benefit analysis!

So decisive and deserving credit that they have cash handouts to schools for JG Memorial Halls, even for those to be closed soon and some schools with perhaps one student!

That was decisive, indeed, by its very definition in terms of its speed and hastiness! No question about it, good management!

This should be a classical and compulsory learning material for the ANU Crawford School – and government school! A higher education institution, with such a governance height in mind, indeed!

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