Australian Households weighed down by Debt Anchor? With Prof. Richard Holden | Nucleus Insights

[@haroldgrey134]

Are there any economists in this country who are critical of "government spending to boost demand" mantra? I know they must exist, yet we never hear from them because government and special interest groups only like to hear from those in favour of it. I've read plenty of challenges to the Keynesian multiplier - Jim Rickards regularly mentions for every dollar of government spending, the multiplier is now less than one in America. I'd hazard a guess that that is relatively true here too. Professor Holden mentioned it "should" be easy for governments to deliver greater than 2% returns on borrowing. But if it were so easy for countries to spend their way back into rude health, why has the whole world been stuck in this low interest rate environment for a decade now? To articulate this in other words: government infrastructure and other projects end up being boondoggles and bridges to nowhere. Ever since its crisis in 1989/90, Japan's government has undertaken fiscal stimulus projects nearly every year for 30 years (on top of the BOJ's monetary programs), yet what are their results? Where are the economists who weigh up evidence for and against spending our way out of recessions?

[@neefee4321]

Great question, and a really great example with of questioning the theory of the multiplier effect in today's economic environment to support it. I have found an issue with the property industry's use and case made for the multiplier effect in recent lobbying for cash stimulus measures. (Subsequently I am going to look up the case Jim Rickards made which you referred to - cheers for that).

[@tommitchell3553]

Really enjoying all of these podcasts!

[@neefee4321]

Hi Nucleus team, Damien's wrap up at the end sounded very similar to Diago Parilla's Macro bubble/anti-bubble strategy featured on Real Vision Finance recently - any chance you can get him on the show? A conversation between Diago & Damien on market volatility and Macro investing would be very insightful for the Nucleus community - Cheers

[@rhysherbert8569]

Another great podcast, awesome work👌

[@tomtesoro5465]

See Australian debt clock! Be scsred!

[@angiesgachavidsandedits3248]

A poor interview....