Economic road map failure
Economics is often called the dismal science. The accusation was justly made after Thomas Malthus predicted that “misery and vice” were the only check on world population growth. Of course these days many economists argue the exact opposite and suggest that population growth is essential for community wellbeing, but despite the U-turn the dismal tag stuck. These days, economists maintain the role of fun police by pointing out to people that there aren’t any free lunches. We use the term “opportunity cost” to describe the fact that whenever “scarce resources”, such as land, minerals, water, food or money, are used for one purpose they cannot be used for another. Except, of course, when it comes to building roads. In this country, we seem to assume the billions we spend on roads each year most certainly could not be spent on hospitals or schools. The money could not be spent tackling climate change and it most certainly could not be spent on public transport. While the economics textbooks don’t have this chapter in it, most politicians know that road funding is “different”.
Related documents
Between the Lines Newsletter
The biggest stories and the best analysis from the team at the Australia Institute, delivered to your inbox every fortnight.
You might also like
Stage 3 Better – Revenue Summit 2023
Presented to the Australia Institute’s Revenue Summit 2023, Greg Jericho’s address, “Stage 3 Better” outlines an exciting opportunity for the government to gain electoral ground and deliver better, fairer tax cuts for more Australians.
Richard Denniss: National Press Club Address
On Wednesday, 31 January 2024, Richard Denniss and Allegra Spender MP addressed the National Press Club for a debate on the Stage 3 tax reforms. **Check against delivery** [See below for transcripts] Tax is good. Tax is an investment in our society and the highest taxed countries in the world also happen to be the
RN Breakfast: Redesigning the Stage 3 Tax Cuts
Richard Denniss joins ABC RN Breakfast with Patricia Karvelas to discuss redesigning the Stage 3 tax cuts.