Economists cool the heat on direct action

A poll of 140 Australian economists in response to the weekend's Carbon Tax announcement has revealed that around 60 per cent believe the Government's package is good economic policy and about 25 per cent disagree with this assessment. While up to a quarter of respondents were unable to give a clear opinion this early in the piece, nearly 85 per cent of those who did have a view said they do not think the Coalition's Direct Action Plan is a sound economic proposal to reduce carbon emissions. The questionnaire coincides with the release today of a major Economic Society of Australia survey that asked over 500 Australian economists about current policies including middle-class welfare, taxes and the financial handling of infrastructure projects. The survey indicated that over 70 per cent of respondents support a national excess profits tax on miners. Society President Professor Bruce Chapman from the Crawford School of Economics and Government at The Australian National University said there was good and bad news for both the government and opposition. 'The good news for the Government is a solid endorsement of Treasurer Wayne Swan's increased public spending strategy to combat the effects of the 2008 North Atlantic financial crisis and the substantial monetary easing by the Reserve Bank,' he said. 'But there is little support for having deficits go on forever.