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Turning down the economic turbo boost : Comments
By Corin McCarthy, published 9/9/2009Wayne Swan's policies have us heading for the sub-optimal result of more inflation, higher interest rates and lower labour utilisation.
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"I take it you are arguing that the policies that successfully employed nearly all males would have failed simply if females had entered the labour force in larger numbers?"
Not necessarily. Only that this would have presented a challenge to the labour market in those times. Increased supply (employees) in a market (for labour) combined with minimum prices (awards, the minimum wage etc) usually means a shortfall in demand.
"The author would not approve of the idea that everyone who wants a job should be able to get one. His veiw requires a percentage of the workforce to be sacrificial lambs."
I think you misunderstand the author of the article when you write this. In the short term, there is a trade-off between unemployment and inflation which is widely recognised by economists. In the longer term, the Non Accelerating Inflation Rate of Unemployment can be lowered, as it was under the Howard government, through a combination of policies such as work for the dole, labour market liberalisation, increasing job seeking requirements for those on welfare benefits, and other policies which increase the economy's productive capacity.
Even though you disagree with the author, you must agree that increasing the capacity of the economy is a good thing, as that's the source of long term economic growth.