Tuesday, 7 June 2016

What comes round goes round

Not long ago when the ALP was in Government they proposed a company tax cut however the coalition voted against these cuts. Bill Shorten was a key spokesman on this.

Now the present government is proposing a company tax cut and the ALP is opposing it.

No hypocrisy here at all!

Both parties are wrong. As Glenn Stevens had said monetary policy neither works as it should when interest rates are so low. As you get closer to the zero bound the less potent monetary policy is.

On the other hand we do know fiscal policy works. Spending on targeted infrastructure would not only boos demand and but also assist the supply side of the economy.