Excellent commentary as always. Although the government feels the urge to distribute the benefit of the resources boom, tax cuts won't deliver the infrastructure and capital requirements needed to increase future productivity/capacity and won't address the low rate of national savings. A failure to focus on long term investment and savings is something common to both Australia and Britain and will potentially make the eventual "post China boom blues" that more trying.

Excellent article. One of the best I've read for a while. Thanks for informing me and your analysis seems spot on, although I'm not an economist.

The erudite and practical thinking Saul has pretty much nailed the reality.I hope Canberra is listening.