Stimulating the economy

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.