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The Forum > Article Comments > Living with the market cycle > Comments

Living with the market cycle : Comments

By Mark S. Lawson, published 16/7/2009

All of that house cleaning after the last recession we had to have has stood Australia in good stead.

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Good article, Mark.

I don't entirely agree with your comment that Federal government has now largely abandoned attempts to wring certain results from the markets by offering subsidies and tax concessions. Three examples, are:
1. the 30% rebate on private health insurance;
2. government subsidies to pay for childcare; and
3. first home buyer's grant.

As you point out, govt intervention in markets is generally damaging. In the case of private health and the home buyers grant, govt intervention has caused inflated prices. In the case of childcare subsidies, ABC Learning did a very good job of taking advantage of those payments... until it collapsed.
Posted by Rowen, Tuesday, 21 July 2009 3:45:09 AM
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