Additional considerations must be oil running out and coal causing climate problems. Hence it follows we may need more rail permitting high speeds and smooth interconnects. Conversely fewer six lane highways and no more coal loading terminals. Electrical transmission capacity may need to be beefed up to handle remote forms of power generation.

It would be nice to see some sort of Federal policy statement that acknowledges these transitional issues. Instead we are told we need more of the same that created the problems in the first place.

Great article, why wasn't this a election issue?

Somewhat clichéd but, the issues raised in this article exemplify the difference between a Howard/Costello *traditional* conservatism and a Rudd *progressive* conservatism.

Economic rationalists report the current government’s fiscal and monetary policies have squandered the opportunities left by the Hawke/Keating era.

This is no more evident than when the RBA as recently as yesterday says we are now very likely to have further increases in interest rates and inflation is set to increase well into 2009, whichever political party wins the election in 10 days time.

It does not make sense to ‘shower’ the electorate with money like confetti when it will be lost or clawed back within 6 months due to the inflationary pressure these very bribes will create.

Unfortunately, many people see these carrots with a twinkle in their eye and don’t look at the big picture – a dollar in the hand is worth 2 in the bush.

Howard/Costello are entrenched in the past with traditional conservatism; we will see tomorrow what Rudd has to say about the future with his progressive approach – it will be a fine juggling act to win over the ‘old’ way of thinking

Costello has a seriously flawed appreciation of the economics of infrastructure. He looks at only one side of the infrastructure equation - the cost side - and neglects the benefit side.

Good economic management requires more than just adjusting the economic levers every year against short term goals and fitting economic policy to the electoral cycle. Responsible capital investment over the last eleven years would have given us higher productivity and better control over interest rates than we have at present. We must stop neglecting the future as said through this article.

And;

POLICY UNDERSTANDING AND BETTER COMMUNICATION IS NUMBER ONE.

Water and Climate Change, Transport, Education, Safe and Affordable Childcare, Housing Civic Wellbeing Education through Health and Crime Prevention. New Skills-Share micro-enterprise employment, and as this is just to start;

We have a huge infrastructure backlog. "A twenty-year $250 billion to $300 billion federal borrow-and-build program involving extra expenditure of $10 billion to $15 billion per annum, will be necessary to deal with this and bring the country into a fully competitive position by 2027. Debt would peak at below 30 per cent of GDP (a modest and responsible figure by international standards). There will be no need to repay this debt as it will be self funding from the tax dividend"

http://www.borrowandbuild.com.au/

I am open to looking at eveything provided it takes inflation into account.

If we went this way... "borrow + build" it is essential to build a authentic platform based on social cohesion as the 'razor gang' is something needing to be magified as "ACCOUNTABLITY" is essental for real savings on day to day material costs. (Planning by Design with tranparent effective staff.)

ie: In social human sevices I note the following; (See the Altmann link half way down this page.)

http://esaconf.un.org/WB/default.asp?action=9&boardid=39&read=2427&fid=424

http://www.miacat.com
.

What a great article but how sad that Rudd was not willing to take the risk to try to educate the voters about the choices they are really making. Instead they are left to enjoy the confetti while it lasts and continue to battle with the infrastructure mayhem we face each day. Basic economics should be part of our educational system.

Congratulations Ian on a timely and well-argued piece.

Let's hope others are reading...