Half the Australian businesses that got a tax cut have banked the cash Half the Australian businesse, page-86

The issues with the banks are not complex.

a) the fractional reserve system is inflationary, so long as borrowing increases. Any economic growth is distorted by this inflation.

b) if increased borrowing ceases, then there is no artificial growth. Real growth is restricted by interest payments on the debt, and the costs of running the banks.

c) if borrowing starts to decrease, deflation occurs.

And so you have the boom-bust cycle. Caused entirely by the banks, in connivance with the govt. This is not a problem of capitalism, because there is no capital involved. We operate under a debtist system, not a capitalist one.

Well, that might be a bit unfair. Not exactly entirely the banks’ fault, because nobody is forcing anybody to borrow money. The government are definitely at fault, because they do encourage borrowing and are major borrowers themselves.