Warren Bingham
MGSM845 – Economic Context of Management
Essay Term 4 2012
Warren Bingham – SID: 43105505
Table of Contents Table of Contents 2
Executive Summary……………………………..…………………………………………….……………3
2008-2009 Budget Outlook……………………………………………………………………………..4
Fiscal Stimulus Package…………………………………………………………………………………..5
Did the Fiscal Stimulus Package work?......................................................................................5
Natural Resouces Boom………………………………………………………………………………..…7
Employment…………………………………………………………………………………………………..7
Consequences of the Fiscal Deficit on economic activity……………………….8
What are the implications for Australia’s fiscal policy for the next 3 years?....9
Conclusion…………………………………………………………………………10
References………………………………………………………………………….11
Executive Summary
In 2008, the global financial crisis resulted in a global recession, the likes of which had not been seen in generations. It led to an unprecedented downturn in business and consumer confidence, which became a broader economic crisis.
Household consumption growth had already shown signs of decline, along with projections for expected taxation receipts (mainly due to lower forecasts of capital gains tax and company tax).
Whilst there were expected significant challenges due to the world economic outlook, the Australian economy was expected to continue to grow in 2008-09 and was forecasting a cash surplus of $5.4 billion for 2008-09 (0.4 per cent of GDP).
In light of the global developments, the Australian Government attempted to strengthen the economy by implementing a $10.4 billion Economic Security Strategy and a $42 billion Nation building and Jobs Plan as part of the 2008 Fiscal Policy. The $10.4 billion Economic Security Strategy was announced on the 14th October 2008, and both were implemented in the early months of 2009.
This paper will discuss the assertion that “The Australian Government has been running with too large a fiscal deficit
Essay Term 4 2012
Warren Bingham – SID: 43105505
Table of Contents Table of Contents 2
Executive Summary……………………………..…………………………………………….……………3
2008-2009 Budget Outlook……………………………………………………………………………..4
Fiscal Stimulus Package…………………………………………………………………………………..5
Did the Fiscal Stimulus Package work?......................................................................................5
Natural Resouces Boom………………………………………………………………………………..…7
Employment…………………………………………………………………………………………………..7
Consequences of the Fiscal Deficit on economic activity……………………….8
What are the implications for Australia’s fiscal policy for the next 3 years?....9
Conclusion…………………………………………………………………………10
References………………………………………………………………………….11
Executive Summary
In 2008, the global financial crisis resulted in a global recession, the likes of which had not been seen in generations. It led to an unprecedented downturn in business and consumer confidence, which became a broader economic crisis.
Household consumption growth had already shown signs of decline, along with projections for expected taxation receipts (mainly due to lower forecasts of capital gains tax and company tax).
Whilst there were expected significant challenges due to the world economic outlook, the Australian economy was expected to continue to grow in 2008-09 and was forecasting a cash surplus of $5.4 billion for 2008-09 (0.4 per cent of GDP).
In light of the global developments, the Australian Government attempted to strengthen the economy by implementing a $10.4 billion Economic Security Strategy and a $42 billion Nation building and Jobs Plan as part of the 2008 Fiscal Policy. The $10.4 billion Economic Security Strategy was announced on the 14th October 2008, and both were implemented in the early months of 2009.
This paper will discuss the assertion that “The Australian Government has been running with too large a fiscal deficit
References: 3. Nigel Garrow and Tom Valentine, 2012, The Role of Mining in the Australian Economy, Contemporary Issues in Mining, Palgrave Macmillan 4