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We have become aware of a fantastic service to deal with unmarketable parcels of shares called ‘ShareGift Australia’. What is an unmarketable parcel of...

Monthly Economic & Investment Market Commentary May 2012 British philosopher Bertrand Russell passed away more than four decades ago, yet the following quote of his...

Pre-pay your health insurance premiums before June 30. You may be aware that the Government has passed legislation that will reduce or remove the...

8 May 2012 The 2012 Federal Budget only contained a few surprises as many of the measures had already been legislated or pre-announced. The main...

Monthly Economic & Investment Market Commentary

April 2012

On one side of the current debate we have those that say governments can and should seek to smooth the economic cycle by running surpluses when times are good. By taxing more than they spend, governments can pay down debt, and / or invest in vehicles such as sovereign wealth funds. Then when hard economic times hit, as the business cycle says they will, there is a greater capacity to support a struggling economy, including by running budget deficits to fund stimulatory programs. Opposing that view are those that see only a much more limited role for government, influenced by their belief that governments have a poor track record at best of intervening at the right time and in the right manner; a view for which there is much support, particular given recent experiences.