Sunday, September 07, 2003

Alan Kohler on the property boom: why spoil the high?: "The property boom is a natural and short-term expression of the optimism that has flowed from the lift in Australia's terms of trade. Just let it be - it's possible that the rise in national living standards, after a century of decline, has only just begun."

This conclusion flies in the face of 200 years of Australian and Western experience: that a land boom leads inevitably to a bust and a recession. That such a conclusion could be expressed indicates how far the geonomic theories of the economy have been ignored and repressed.

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