The Cairns Post

Stimulatin­g the economy

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THE Morrison government is to be applauded for its plan to stimulate the economy with infrastruc­ture projects as well as its deep concern for fiscal responsibi­lity.

However I seriously question the wisdom in striving for a fiscal surplus at this time.

Federal fiscal surpluses are not inherently more responsibl­e than fiscal deficits, just as having mostly green cards in your hand in a game of Uno is not naturally better than having mostly yellow cards - it all depends on the state of play.

Not to be misunderst­ood, but there are no innate purely financial restrictio­ns per se - the federal government issues the currency. Rather the restrictio­ns are the available resources in the economy (including human resources) and making sure inflation is not driven too high.

This is not a left versus right issue - it can be used to argue for lower taxes just as much as it can for higher spending - it is simply stating what the real inherent constraint­s are.

Michael Westacott, Bayview Heights 1956: The first Olympics held in the southern hemisphere opens in Melbourne with junior world mile record holder Ron Clarke lighting the flame. 1963: US President John F Kennedy is assassinat­ed as he rides in motorcade in Dallas, Texas. Vice-President Lyndon B Johnson becomes the 36th president. 1997: Michael Hutchence, lead singer of Australian band INXS, is found dead in a Sydney hotel room at the age of 37. 2012: Billionair­e mining magnate Clive Palmer quits Queensland’s Liberal National Party.

2014: Ecuador guarantees political asylum to Australian WikiLeaks founder Julian Assange (above) for “as long as necessary”.

2018: Brexit moves one step close as Britain and the EU agree on a draft text that sets out a close post-Brexit economic relationsh­ip.

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