Thursday, 8 October 2015

Around the Traps 9/10/15

It is time for Around the Traps again.


Northern America
Andrew Gelman ( Mainly Stats)
Genial Dave Giles ( Econometrics)
Dianne Coyle ( Quirky + Book Reviews)
Vox wonk

Wednesday, 7 October 2015

Katesy is still ignorant

poor old Katesy.

There is he writing utter nonsense amongst people whom wouldn't know.
Now he writes about the foolishness of Keynesian economics,
oh dear. if there has been a person more ignorant or stupid who has written in the blogsphere I have yet to encounter him or her.
Katesy is the man who thinks Europe went on a Keynesian pump priming scourge. Except they didn't. They introduced contractionary policies that everybody acknowledged , even the Germans, but not out Katesy.

Those wonderful classical economic policies did not produce any recoveries anywhere. It did produce depressions. Just ask Ireland, Greece or even Estonia!

One of his great comments was that the statisticians were all Keynesians. You cannot trust any of them.

I do remember one time when he was mouthing off against Obama he claimed the government spending was destroying the economy, However that quarter as with many quarters the public sector did not add to GDP growth.
Lets us add understanding Statistical agency bulletins to basic statistics that he doesn't understand.

He says Costello ,by implication , adapted Classical economics.
When they won office in 1996 Treasury recommended tight economic policies. This was actually totally Keynesian and it was said as much.
By the end of their Government Peter Boxall was recommending a classical type policy in keeping the surplus at 2% of GDP. This was clearly not contractionary enough given events in Australia and hence we got increased inflation which is what Ken Henry said what would happen.
Oh Dear.

We must not forget he rewrites history. Keating and Costello were facing recessions when they got their budgets back to surplus apparently.

The only reason he writes at Catallaxy is Davidson will not allow anyone yo comment on how inaccurate out Katesy is. He bans anyone who do not write along the politburo there  spouts,
That is why basic mistakes by anyone there gets through and no-one spots them. They do not posses the nous to do so. that is why no-one commetns anywhere else. Like Our Judy they will leave with their tail between their legs after her Troppo fiasco,

Just remember our tax dollars are paying this man!

okay okay. for efficacy of stimulus see here

I see Katesy is now saying people fleeing ISIL will end up terrorists. Wow.What an intellect.

He keeps on supporting Abbott.
The man who increased both  deficits and debt. the man who said he would be the infrastructure Prime Minister but had such spending at its lowest level of GDP.
A man who both stopped the boats but also turned them back.
Yep it is no wonder Katesy supported the man.

Tuesday, 6 October 2015

Penalty rates again

I see more talk about getting rid of penalty rates again.

Two things.
Most people who work on the weekends are uni students. What do think they will do if their money is reduced?

We have seen some sort of example of this. Coles thought to bring down wage rates in their night fill yonks ago.  They no longer have night fill.

You will have some people putting their hands up . The people who need the money at all costs. However the decision between leisure and lower pay on Sunday would be a no-brainer.

I am still amazed no-one examines the supply side of labour when looking at penalty rates.

Monday, 5 October 2015


It seems as though the TPP is now a signed agreement.

As it is a multi-lateral agreement there will be more benefits than the alleged benefits spruiked absurdly by the Government on the bi-lateral agreements.. Andrew Robb plainly did not know about the modelling commissioned by his own department.
On the other hand if the agreement is mainly about intellectual property as alleged by Kruggers then the benefits will be much lower.
Until we see the actual agreement we do not know. David Collins has some useful insights.
THIS is quite critical.
We can but hope it might jump start trade.

Thursday, 1 October 2015

Around the Traps 2/10/15

It is time for Around the Traps again.It is a long weekend in Sydanee so updates could be problematic.

Aussie,Aussie,Aussie, Oy,Oy,Oy
Northern America
Andrew Gelman (mainly stats)
Genial Dave Giles (Econometrics)
Dianne Coyle ( Quirky + Book Reviews)
Vox wonk

Wednesday, 30 September 2015

Tax Reform

Let us be very clear about what tax reform is.

It is reforming the tax mix.
Say increasing the GST but getting rid of many state taxes for example. It is revenue neutral.

If you cut income taxes but not spending as Peter Costello and then Wayne Swan did you simply introduce and then expand a structural deficit.

This is why no fiscally literate person ever advocates tax cuts to boost economic activity when there is a slump.

Tuesday, 29 September 2015

A good reason why Sinclair Davidson has no credibility

Steve from Brisbane writes about Davidson's gullibility.

Is he that stupid or he simply cant tell the truth.  Has he joined Katesy as a conspiracy nutter?

You decide!