Economics
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It is plain silly to be influenced by individual monthly and quarterly inflation numbers. There is too much noise fuzzing-up the the signal for the latest inflation numbers to be of any use. A far better perspective is gained by looking at the annual growth of monetary aggregates. If they are coming down, scotch all thought of hiking rates
August 4, 2024
5 mins
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Why doesn’t socialism work? It is a closed or semi-closed system. Production and prices are fixed. Inexorably, gaps form between supply and demand for individual products. Resources are misapplied, guided by the whims of economic czars. This is not conjecture, it is a matter of historical experience
July 7, 2024
6 mins
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Taking half of somebody’s hard-earned money is immoral. Taking half of somebody’s income to give it to people who don't work in the hope that they will vote for the politicians delivering the largesse, is even more immoral. A nation where effort is punished and laziness rewarded has no future. Without reform, that is Australia's certain future
June 20, 2024
8 mins
The latest
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How will you advise your children? Is staying in Australia […]
May 28, 2024
8 mins
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I am constantly struck by the economic ignorance dressed up as expertise. It pours forth from Treasury, from the Reserve Bank and, of course, from the economics commentariat. What all that suggests is that the ghost of John Maynard Keynes remains hard at work turning logic on its head
May 28, 2024
8 mins
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As Jim Chalmers' budget made no claims about Donald Trump and Russian puppetmasters, there was no opportunity for the ABC's Sarah Ferguson to take viewers on a globe-girdling flight of fancy. Instead, and to her considerable credit, she gave the Treasurer and his fiscal fantasies a thorough thrashing. Well done, Ms Ferguson
May 19, 2024
6 mins
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According to Craig Emerson's recent report on supermarket companies and their alleged profiteering, the more the chains pay to put goods on their shelves, the cheaper they will become. Yes, that's what he wrote and the Prime Minister cheered. No need to wonder why Australia is in the state it's in
May 5, 2024
5 mins
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Australians have up to now gained only a limited understanding of inflation. The exceptions are those of an older generation who went bankrupt or lost their jobs in the wake of the 'Whitlam party', when a Commonwealth spendathon coincided with a wave of global oil-price increases. What is it they say about history repeating?
October 24, 2023
16 mins
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The Climate-Related Financial Disclosure consultation paper concedes the financial risks associated with the transition to net zero, but nevertheless prods companies to slash their carbon emissions. Quite apart from the fact that pleasuring Gaia isn't and shouldn't be one of Treasury's responsibilities, the green preoccupation is farcical as Australia's top greenhouse emitters are already obliged to report by the National Greenhouse and Energy Reporting Scheme
July 18, 2023
6 mins
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According to Deputy Governor of the Reserve Bank Michelle Bullock, 'One of the channels through which higher interest rates work to bring down inflation is by reducing the demand for goods and service and, hence, the overall demand for labour.' Au contraire, Madam. That Keynesian fantasy isn't the way the economy works or ever has worked. A better way would be to persuade Albanese & Co to put a brake on spending
June 24, 2023
5 mins
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Australians would have more confidence in the direction of the economy if there were indications the RBA is closely monitoring the money supply and its drivers -- government deficit spending and bank lending. As it is, when the Governor can make a major speech about inflation and not mention the money supply, there is no reason to be cheerful
June 11, 2023
5 mins
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Suppose when the national accounts come out we don’t describe economic growth according to what additional goods have been produced but according to what’s been spent. Try it at home: last year was bountiful year and spent a lot -- and next year will be even better, if we can only just increase our spending. If that seems silly on the home front, it is no less ludicrous on a national basis
June 7, 2023
14 mins