Wednesday, September 30, 2009

We're spending like, well - never before

Retail sales were up 0.9% in August.

But that's not the point.

The point is that even in August, nine months after the stimulus packages began, we are still spending way in excess per month of what we ever did before the packages.

The graph from the ABS tells the story.

The dark trend line stops just before the first package.

After the spending packages looks nothing like before them, right?


Anonymous said...

Much of this retail spending leaks overseas, diminishing the multiplier in terms of Australian jobs beyond the retail sector. Far better for these billions to have been spent on nation-building infrastructure such as installing a smart electricity grid, building some nuclear power stations, or a high-speed train linking Canberra and Sydney if not Melbourne as well.

Johng said...

Peter, the Read On link doesn't work.

Peter Martin said...

Johng, it shouldn't have been there. I've removed it - thanks.

Peter Whiteford said...


Most of your ideas sound good - not sure of the practicality of the high speed rail link to Canberra, however. But one point of the fiscal stimulus is to be timely - and none of your good ideas would have got far beyond the planning phase by now, if they even got that far. How long does it take to build a nuclear power station?

carbonsink said...

Yep, Australia is a super economy
- We splurge at the mall on imported goods (on credit natch)
- We are up to our necks in debt for ever more expensive houses
- We make nothing
- We invest nothing in science and R&D
- We export nothing except rocks
- We export climate change to the world

Looking forward to the trade numbers due on Tuesday. No doubt the media will be "shocked" at the trade deficit, the AUD will drop a cent for a day or two, then resume its upward trend until the next trade shock.

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