I would still call them shills, regardless of the party that issued the stimulus and regardless of the state government that instituted the syllabus. When they leave out significant and still relevant criteria about this issue, educators sell short their students and narrow their focus far too much. My problem stems to education as a whole in this country and specifically to this subject and topic.
right. i don't meant to say i don't kind of share your concern. without knowing how it's taught, i can't say for sure whether they're 'selling students short or not.' but from what you say, they're not really approaching the stimulus from a critical perspective. they could definitely get students to use the fundamentals, learned in high school economics, to understand why the stimulus did and didn't work - but they're not teaching that. however, the arguments against the stimulus' effects are pretty weak (crowding out or ricardian equivalence) and either aren't of much value, or are too obscure for high school economics. so i don't know how they'd critique it. economics education is pretty standardised the world over, from high schools to undergrad, so i wouldn't say it's necessarily an australian issue.
There are a myriad of other, more sensible reasons for these things though. The fact that the RBA cut interest rates by an unprecedented amount (can't remember the exact figure) overnight, combined with China not being as adversely affected as the rest of the globe's economies and still demanded all of our minerals (wassup two speed economy) and stuff like the government not securing losses for banks throwing cash into bad borrower's laps all had a more important and stringent effect than the stimulus that was handed out. Literally none of these things were even mentioned when I learnt it, which means they either were or are not included in any syllabus relevant to learning about this type of economic management, which is ludicrous.
1) the RBA cut the cash rate from 7.25 to 3.0 between september '08 and april '09. not by unprecedented amounts - the largest cut was 100bps which has been done quite a few times - although the overall effect, halving the rate in 6 months, was unprecedented. but first of all, lending rates are obviously multicausal. like all banks, australian banks borrow heavily from overseas, and interbank lending froze up (i.e. credit crunch). so, compounded by uncertainty and fear both domestic and international, we didn't see a commensurate fall in domestic borrowing costs. secondly, to quote milton friedman, "monetary policy works with long and variable lags." that is, the effect of monetary policy is delayed (by, say, two quarters at least). or monetary policy works with long and variable 'leads' instead, where the transmission mechanism of monetary policy is understood as expectations of future GDP, looser policy leading to higher expectations of future GDP, leading to an increase in current AD and GDP. but the point is the effects are delayed, and you have problems in the meantime related to falling aggregate demand and consumption (e.g. unemployment)
2) china was in the midst of a slowdown as well. economic growth fell off a cliff (from 12% to 8.5% or so). they instituted a massive stimulus package - 14% of GDP compared to 5.5% for the US and 4.6% for australia. this shored up demand for australian minerals and commodity prices in general.
3) the government did secure losses. an emergency scheme in 2008 covered deposits up to $1mn, and this was only reduced to $250,000 in February this year. obviously this was just to deal with uncertainty and a potential run on the banks. no deposits were actually secured since none of our banks went bankrupt.
the handouts, and later the school building program and other spending programs, had a real, immediate effect on aggregate demand. you can't simultaneously argue that our economic stimulus didn't work and then thank chinese demand for our mineral wealth, because chinese demand was shored up by their massive stimulus package. and because monetary policy works with long and variable lags, the virtue of an immediate cash handout program has instant and real effects.
My gripe isn't with pointless ideology, it's with providing a better education about serious issues, further than "look the science just isn't in".
i get that. i agree that the syllabus could probably do without a valorisation of the stimulus package. but it's a great case study, and should still be taught. and you're still going to have people who complain about it.