The funny thing that not too many people realise about the Senate blocking the Abbott government’s policy measures to hike taxes and fees and to reduce government spending is that it is positive for the economy.
You don’t have to be John Maynard Keynes to understand that measures that would take $28 billion out of the hands of the private sector and put into the Treasury coffers would dampen economic growth – it is called fiscal tightening.
If, per chance, the Senate passed these measures, the economy would be weaker as fees were paid ands services cut. So few people, Joe Hockey included, seem to get this point.
The Senate road block on budget measures is actually one positive for the economy is an otherwise gloomy space.