kevin rudds attack on john howard, page-56

simco

You do not understand. He managed inflation by over taxing. Not a smart way when the country is crying our for government investment. If you do tax then you should invest in something. Would you buy into a company that just sat on cash and did nothing for future income? May as well just keep your cash yourself. In this case..tax.

Now we have higher costs say with mining because of port bottlenecks, getting mining leases okayed, getting lab results,lack of housing, staff shortages. We have ineffiencies due to lack of telecommnication and rail networks.

Spending on any of the above increases productivity and is non inflationary. During this type of spending investment in hospitals and schools can be absorbed.

Government can only contribute to the economy is so many ways as it is largely market driven but you say by doing nothing, just hoarding cash and allowing private and state debt to escalate is good economics. I worry if economists think this way. I really do.