Surely spending is for recession, not good times
Could someone from the government or perhaps one of your correspondents to these columns, explain the economic rationale behind our government's fiscal policies?
Either my understanding of economics as I was taught it is out of date, or perhaps it is that our government's understanding of the subject is confused.
Surely it should be the administration's role to dampen rather than exacerbate economic cycles.
This should mean that in tough times public spending increases and during the good times, it drops.
I have therefore been increasingly baffled at our government's handouts during the good times (the so-called inflation-relief measures) and the parsimony it shows when there is a downturn.
The giveaways, though well intentioned, surely only exacerbate inflation by putting more money in the hands of consumers at a time when consumption was to be discouraged.
