Interesting footnote to our discussion a few months ago - apparently economists now agree that the govt's stimulus spending has helped keep Australia the world's only advanced nation out of recession - see report from today's 'The Australian': The Government, through its cash payments to pensioners, carers and others, has kept the Australian economy going while the private sector is in retreat and until such time as our infrastructure investment kicks in," Kevin Rudd said yesterday. The Prime Minister cited Treasury estimates the economy would have contracted by 0.2per cent in the quarter if it had not been for consumers spending their cash handouts. By growing in the March quarter, the Australian economy has avoided the technical definition of a recession - two consecutive quarters of contraction. Economists confirmed the Government's claim that its stimulus spending had contributed to one of the world's best growth performances. "There is now clear evidence that the stimulus spending has worked," said Access Economics director Chris Richardson. "After the December accounts you could still argue the point, but the Government can clearly claim success now." My bet is that establishments serving food are suffering, but would be interested to know whether there has been any effect on coffee? -A
