Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Reserve Bank must slow down with the changes

By Henry Thornton - posted Tuesday, 3 March 2009


Employment statistics have held up, and it seems many businesses are encouraging people to take leave or work shorter hours to keep trusted and experienced workers on their books.

The budget is now clearly in deficit and the Government has asked for approval to borrow up to $200 billion.

Current stimulus is effectively a burden on future generations, a point the Opposition has made strongly and often.

Advertisement

As we have also said repeatedly, some stimulus is clearly worthwhile, but we have made two points apart from the burden on future generations.

The first is that some restraint, in limiting direct assistance to people in serious trouble, would limit the burden on both current and future generations of taxpayers.

Leaving room for additional stimulus would be a wise precaution, especially given the continued speed of economic deterioration abroad.

From a moral perspective, helping those who do not need help is at best distasteful.

Our second point is that fiscal stimulus so far has focused on boosting demand. A safer course would be to provide additional spending or tax cuts to stimulate the supply side, making Australia more productive and competitive.

Some pause in the headlong rush to stimulate demand might provide time and space to debate these important matters.

Advertisement

Another matter to debate is why the world finds itself in such a mess.

"Extreme capitalism" and "excessive greed" is the diagnosis of the Social Democrats, including Kevin Rudd, Gordon Brown and Barack Obama. That capitalists are greedy and willing to do virtually anything to further their aims (which is to get rich) should come as no surprise.

Indeed, Karl Marx, the philosopher-king of the Left, said in Das Capital: "With adequate profit, capital is very bold. A certain 10 per cent will ensure its employment anywhere; 20 per cent certainly will produce eagerness; 50 per cent ... positive audacity; 100 per cent will make it ready to trample on all laws; 300 per cent and there is not a crime at which it will scruple, nor a risk it will not run, even to the chance of its owner being hanged."

  1. Pages:
  2. 1
  3. Page 2
  4. 3
  5. All

First published in The Australian on March 3, 2009.



Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

2 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Henry Thornton (1760-1815) was a banker, M.P., Philanthropist, and a leading figure in the influential group of Evangelicals that was known as the Clapham set. His column is provided by the writers at www.henrythornton.com.

Other articles by this Author

All articles by Henry Thornton

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Photo of Henry Thornton
Article Tools
Comment 2 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy