We already have financial central planning by the RBA & the Treasury which benefits the Big Banks* and we call that Capitalism yet once that is extended we call it Socialism/Communism.
IMO we have to agree on what to call the status quo before we consider speculating on what to call its extension.
Is the current QE/Government borrowing/spending Socialism, Communism, State Capitalism or Normal where only a few benefit or is something entirely different.?
Up to Covid/China Trade sanctions our Gov spend was 19.01% of GDP Add to that State & Muni spend and well likely have 30% IMO.
In 2020 we can safely add another $200 billion (another 11%) IMO for Covid, bushfires & drought 2019 delayed payments.
IMO, there is obviously something wrong with our system when the stock market soars and yet the economy is on life support in the form of Government spending borrowed money to avert an economic depression.
If we take away the Government extra spend (+11% of GDP) then we'd be in depression; not recession.
Sure there have been some real winners like Iron Ore, Supermarkets, online marketers , parcel delivery etc but this does not balance the structural damage done to Aus where hundreds of thousands of small businesses are closing or on life support.
While many of the big winners are foreign owned /majority foreign owned corporations, the small businesses on the skids are virtually all Aussie owned.
It simply does not make sense and as the saying goes: "If it doesn't make sense, then its likely not true" (at least in the longer term, IMO)
We have all kinds of theories such as MMT saying that Governments who print their own money/generate excess credit simply cant go broke yet history is pickled with regimes that did that and failed.
The rationale seems to be that financial systems/markets are so globalised and if one goes, all goes, so any one jurisdiction is no worse/better off than the other and that the notion of wealth is relative ; not definitive.
