IN the absence of a vaccine I believe cuts to JobKeeper and JobSeeker, can only result in more job losses, business failures and hardship. Our government likes to use the derogatory and emotive term zombies to justify these cuts. Zombies should die, right? But the'zombies here are real people with real families to support and real bills to pay.
Federal policy that encourages unwise lending, and businesses to trade whilst insolvent, is mere tinkering and political spin. At present, there are few business opportunities or jobs and no capacity to pay back increased borrowing.
Monetary policy cannot stimulate the economy at present. Even if the Reserve Bank of Australia floods the private sector with more money or reduces interest rates further, this will not provide enough stimulus to the Australian economy. During the pandemic, investors and consumers remain cautious and are disinclined to borrow and spend more. Therefore, the federal government needs to step in via the budget deficits to increase aggregate demand. Tax cuts to businesses and households, whilst they are nice, will have limited effect. Government needs to spend money directly, preferably on capital infrastructure and vocational education. These types of expenditure have long-term benefits since they build Australia's future productive capacity.
But how do we finance this direct expenditure, without borrowing from the private sector and reducing liquidity?
Although the Morrison Government is averse to Modern Monetary Theory, and the very idea of "printing money", this should be done. It requires the RBA to buy government securities from the Treasury instead of the private sector. Although this would increase nominal national debt, that doesn't have to be paid back to anyone. The blowout in debt and budget deficits, would mean the dollar and Australia's credit rating would take temporary hits, but they will recover as Australia's real economy rapidly recovers.
Geoff Black, Caves Beach
Workers unite to stay in jobs
ERIN Killion (Letters 24/9), unionists are about 10 percent of the workforce and will not rebound like the mining industry. In fact I believe union membership continues to decline as people realise the fees are a massive smorgasbord of pork barrelling and political donations. The coal industry and the meat industry are targets of climate activists.
In your wisdom, as a proud union member, could you please advise who will pay and what jobs will be available for the 440,000 meat industry workers and a couple of hundred thousand miners if climate change policy is introduced to the extent that you say is necessary? What is the time period for the closure of these major employers?
Steve Barnett, Fingal Bay
No need for soar price point
THERE is no way at all that the former federal Minister for Urban Infrastructure Paul Fletcher could have been expected to have been all over every last detail regarding each of the land purchases for the second airport for Sydney. Crikey, it's the single most costly project ever undertaken in the history of the nation.
However, if Mr Fletcher had access to the sort of spreadsheet favoured by the former federal Sports Minister Bridget McKenzie to guarantee that any payments were above board, perhaps the price for the land may well have been far less than the almost $30 million paid. I would have thought that a couple of columns, say referencing the price per square metre of the land compared to other land acquisitions for the airport or the NSW Valuer General, might have avoided problems.
If Prime Minister Scott Morrison or his deputy Michael McCormick can't get their hands on a template for a spreadsheet, I suspect that NSW Premier Gladys Berejiklian or her deputy John Barilaro might have a copy left over from the Stronger Communities program.
Robert Gol, Carrington
China's actions speak loudly
SEVERAL years ago, while driving to the Central Coast, I noticed the Summerland Point turn-off and I decided to have a look around there, because a letters correspondent had been continually criticising the Australian government and I wanted to see what the living conditions were like. I found it to be a pleasant little Shangri-la near the water. There were boats on trailers parked outside many of the homes. It was difficult to understand why anyone living in this lovely spot could be so unhappy with life there.
In his most recent letter (Letters, 26/9), Richard Ryan informed us the he has visited China three times and will visit again, because he feels safe there and he assured us that it is not a war-like country. Over the past few years, China has bullied its way onto several disputed islands in the South China Sea. When the International Court of Justice ruled that it had no right to do so, China simply ignored the ruling and set up military installations on those islands, to which several other countries also claimed ownership. At least Mr. Ryan's interesting letter has satisfied my curiosity about his negative comments towards his homeland over many years.
David Stuart, Merewether
Renewed evidence of power
REGARDING Carl Stevenson and Graeme Bennett opining that renewables are not capable of powering the grid, not long ago the grid transmission lines joining South Australia to the grid were blown down. This left South Australia with only power coming from wind, solar, a gas generator and the Tesla battery for 17 days.
The Australian Energy Market Operator (AEMO) had the gas generator running at low output and wind and solar provided almost all the power for South Australia, plus an aluminium smelter.
The AEMO made very good use of the Tesla battery in keeping the power on in South Australia as well.
Considering there was no stored hydro power available to be called on in South Australia, in my opinion the AEMO did a marvellous job keeping the power on in South Australia for 17 days using mainly renewables for the task.
Agner Sorensen, Teralba
Don't burn our bridges
Considering some will always believe renewable energy is the only answer, I suggest there is a strategic practice used in warfare and most other matters of national importance, where one doesn't burn the bridges behind them until the destination or achievement has been accomplished. It's called keeping a backup.
This rule is essential in the introduction of renewable energy, where existing and possibly new power stations must remain until renewable energy can replace them all day, every day, without fail.
Considering we are heading into an electronic revolution with millions of battery powered cars, buses and trams about to make the scene, all needing a 24-hr base load power supply to remove the backup of a power station before time would plunge Australia into a third world existence, with no way out. One can only hope the powers to be will act wisely.
Carl Stevenson, Dora Creek
IN reply to Robert Tacon (Short Takes, 25/9), after watching the Knights' 36-6 outrageous hiding by the Titans ('Losing ground', Newcastle Herald 26/9) I think I have every right, as a loyal member to be critical of their inconsistent attitude to their job.
Bill Slicer, Tighes Hill
A BIG congratulations to the Nelson Bay Under 14s Gropers rugby union team; another season undefeated, the giant slayers year after year. It shows that a star team will beat a team of stars every time. Well done.
Brad Hill, Singleton
WHAT is happening with Newcastle Post Office? We walk past it nearly every day and it seems no work is being done to it. It looks like it's falling into more disrepair. Come on, Mr Schwartz, either get moving with it or sell it to someone else who wants to lovingly restore it. It's such a beautiful, iconic building.
Helen Hunstone, Cardiff South
I WAS at John Hunter Hospital last Saturday injured and cannot thank all the doctors, nurses and paramedics who attended to me enough. How can some people be so rude and inconsiderate to all hard-working people saving our lives? Thank you all very much.
Dana Bates, Wallsend
RECENT:Y there have been many articles regarding hydrogen being a new source of renewable energy if we can take it from water in the atmosphere ('Out of thin air', Herald 4/9). I am wondering, will this create another problem to upset our weather and create a drier climate in the long term through ozone depletion, dust and adding to the other problems like carbon dioxide? Before we start taking heaps of water from the earth's atmosphere I hope a lot of research is done. We in Australia do not need a drier weather pattern.
Ray Dean, Thornton
IT was so good to hear Jeff Corbett made himself some money following horses at Broadmeadow ('Horsing about at work', Opinion 25/9).
Dave Wilson, Bar Beach
THE inquiry into the bungled hotel quarantine system in Victoria has ended. What was its purpose? Was it designed to find answers or was it a politically motivated inquiry designed to smear the Victorian government? Either way it does not matter. We, the world, are at war with a deadly virus. In wars people make mistakes and people die. Let's move on, stick together and we can defeat this virus. Divided we fall, united we will win. In closing I will say this; in my opinion the total responsibility of supervising overseas arrivals in this situation should have been given to the Australian Border Force. They should have had complete control of this area in every state in the country. That is their job.