Question by monash0z: In what ways does the federal government serve as an automatic satabliser for the economy?
considering macroeconomic theories / studies.
Answer by anti-bias
I am not quite that I can fully answer your questions, but some points could be highlighted to serve your upfront question.
the government hasn’t done so much to stabilise Australian economy although they have been claiming desperately on what they have done, say, massive stimulus package including the infrastructure investments, to facilitate RBA and banks to pass through the interest cuts, and to implement tactic foreign diplomats. but unfortunately all these can not fundamentally change the declining trend of Australian economy. why? one important point has been missed. that is reform. there are a lot of productivity hidden in our economy. Australia is far from being fair or “equal opportunities” in many industrial settings and human resource management which has been hurdling the economic development. I just want to raise a couple of examples here.
in our health sector, we all know we don’t have enough doctors, dentists and even nurses, but we have a plenty, plenty unemployed energetic people who are idle there. why? simply because they can not get into the industry, simply because they are “banned away” to be enlisted to learn the courses. someone may say, we don’t have enough facilities. not that is wrong. training unlike using can always overcome some hardware shortages. actually that is the protection, the industry protection that make all the difficulties. and for the protection, the government has to drain more money to feed those “crying” doctors. look at what your GP is doing and you may have already sensed their values.especiallyly when compared with the doctors in other Asian countries…
in our education sector, we are lack of teachers for all the schools obviously. but we have many uni graduates who can not find jobs simply they are over qualified, that is ironic anridiculousus. why not allowed them to sit a test for teacher recruitment, or short term training if you are still worried their ability to teach properly. actually obviously qualified teachers in our system seem not that qualified at all. still it is the problem of industry protection.
the industry protection fosters slackness, greed, monopoly and arrogance that make us less competitive, vulnerablese of our economy. what the government should do to be a automatic stabiliserer is to reform timely and decisivly when the economy calls to enhance our industries’ performance…..hope that may help
Give your answer to this question below!