As inflation grows and businesses start to fail the government is choosing to intervene, this is the crux of the problem. In previous crashes businesses were allowed to fail, and this gave smaller innovative businesses a chance to grow and emerge as new players. But such is the governments fear of economic collapse they are choosing to prop up businesses that have not been competitive. I'm not saying all companies are guilty of this, but PRINTING MORE MONEY to save failing companies is pouring fuel on the inflation fire. OK we do have essential services like Qantas (debatable, but i get it). I ran my first company for 20 years, through two crashes, we never got bailed out and we survived, let the dead wood burn and allow the economy to function as it should, this is a normal process that ensures a healthy economy in the years to come. People can argue that these are unprecedented times, but there are still smart innovative companies out there, that saw what was coming and planned accordingly, their reward is nothing, because their poorly performaning competitors get to survive and hold market share.
State’s plan to offer collapsed builders a lifeline as construction crisis grows. As the construction crisis continues to worsen, one Australian state is weighing up an ambitious plan to keep collapsing firms afloat.
