LETTER: Change the mantra
IN 2008, the world was hit by the GFC which engulfed all nations, driving them into recessions with high debts, high unemployment and businesses going bust; that is with the exception of Australia.
Labor treasurer Wayne Swan brought in the stimulus packages, the bank guarantee and other measures.
Yes, thankfully there was a surplus at the time, and it saved so much heartache in our country.
Many countries are still facing the challenges brought on by the GFC.
Unemployment in Spain and Greece is still over 20%.
We have been very fortunate to have dodged the bullet.
It seems that what we have not had to deal with is incomprehensible to some people like Gerard McKeering (Daily, 20/5).
Would he have preferred the social upheaval of a recession?
A government's policies should support our community and the economy in fair, equitable and sustainable ways.
Monetary policy is a means to achieve a nation's desired economic outcome of jobs and growth.
If this means the budget be in deficit, so be it.
A return to surplus will be achieved when the economy is strong and there is full employment.
The mantra that deficits are bad needs to be challenged and changed.