Re: End of the line for rail link to Bondi

["Werris Creek" <werriscreek@bigpond.com.au>]

a n d R e w ; wrote in message <>
>
>Not true. In fact, during the Great Depression, government
>expenditure in many countries was GREATLY INCREASED, in order to
>prop up the economy and attempt to keep unemployment as low as
>possible, given the economic climate of the time. Governments
>nearly always increase spending during recessions - this is
>known as counter-cyclical economic policy.

It was certainly true in Australia where Govt expenditure collapsed during
the depression largely due to the massive expansion of overseas funded
governement expenditure in Australia during the 1920's.

The depression contributed to the collapse in this overseas borrowing with
the result it is argued that Australia suffered more during the depression
than most other industrial economies.

Counter cyclical economic policies did not really find favour until their
success was  demonstrated by the second world war.

Werris