Prime Minister Malcolm Turnbull reckons his Snowy Hydro $2 billion investment is a “nation building project”.
Yes, that is what he said. Really. Turnbull think a one-off $2 billion government infrastructure project is “nation building”.
Let’s look at $2 billion in the context of the Australian economy.
In the December quarter 2016, Australia’s GDP was $435,445 billion dollars (seasonally adjusted). This works out at $4,769 billion a day which makes the $2 billion snow job about 10 hours GDP.
Useful? Sure!
Nation building? Ha!
By 2020, Australia’s GDP will be around $510,000 billion a quarter and $2 billion will be akin to about 8 hours GDP.
Here’s what elese $2 billion is now days.
It is about the average amount the government borrows each week.
It is equivalent what consumer spend in 20 days on cafes, restaurants and takeaway food.
$2 billion sounds like a lot of money but in context of the size of the economy, it’s peanuts.