Open letter on stimulus
Over Fifty Australian Economists Agree Fiscal Stimulus Prevented A Major Recession
Nobel Laureate Professor Joseph Stiglitz has stated publicly that the Australian Fiscal Stimulus was a well designed package that saved the Australian economy from a major recession that has hit almost all the other OECD economies. He argued that the Australian package was a model for other economies facing similar problems.
The attached letter was signed by over fifty academic economists. Several other academics and economists supported this view about the Fiscal Stimulus Package that prevented the Australian economy from a deep recession and prevented a massive increase in unemployment.
The Australian economy has come out of the Global Financial Crisis in surprisingly good shape thanks to this Stimulus Package.
The Australian unemployment rate is amongst the lowest of any of the OECD economies.
Unlike the US and Europe, we are not facing the possibility of a double dip recession.
The current level of government debt (the lowest in the OECD economies) is due to tax revenues falling during a slow-down in the economy, whilst social security payments increase. Most of the increase in the debt would have happened independently of the increased government expenditures associated with the Stimulus Package.
The Stimulus Package has led to an increase in infrastructure investment that would help the long-term development of the Australian Economy.