A couple of weeks ago I read an article on malaysiakini stating that Badawi planned to cancel some government projects in light of the global economic slowdown. If that was not bad enough, I just read an article on msn news today regarding Anwar's proposed budget which also suggests slashing major government projects.
To all those who have some background in economics-
Isn't the government supposed to increase government spending in an economic slowdown?
Or are the billion dollar bailouts proposed by the Fed, EU central bank, RBA and numerous others in their respective countries all wrong? Yea, that must be it, all those developed nations are wrong, Malaysia's right!
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2 comments:
Good one! Sigh, Malaysian government should be given crash courses on some basic macroeconomics?
Hey Warren, well pointed.
However, lets remember that fiscal policy should be done properly.
Now we wouldnt want the government to spend 100million ringit on making the biggest roti canai in the world would we?
And yes, its sad that most of them did arts and not something kickass like econs.
:(
How sad Malaysia doesnt have a Ben Bernanke of our own...
**thought I suppose non Keynesian economists would think otherwise when it comes to fiscal policy
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