Government decisions affect the economy far less than our public debate would suggest

Riddle me this: if “free market” politicians think that the role of governments is to get out of the way, then what do they do all day while “managing the economy”?

Interest-rate policy has been delegated to the Reserve Bank of Australia and the Coalition’s fiscal policy is to offset any new spending measures with spending cuts somewhere else, so what economic levers does a Coalition treasurer have to “fine tune” the economy with? I have lived in Canberra for 20 years and I’m yet to see the room with dials from which our treasurers kickstart a failing economy or put the brakes on a booming one.

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Read More The Coalition says the silliest things about economic management | Richard Denniss

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