Infrastructure: A failed solution to an unnecessary immigration problem

The Australian’s Judith Sloan has done a good job demolishing calls for more infrastructure, claiming it is the wrong solution for problems that could be easily addressed via reducing immigration:

Last week, when the board of the bank met in Darwin, governor Philip Lowe offered this advice: “It is appropriate to be thinking about further (infrastructure) investments, especially with interest rates at a record low, the economy having spare capacity and some of our existing infrastructure struggling to cope with ongoing population growth”…

There is a creeping naivety among many commentators that all infrastructure spending enhances productivity and that more infrastructure spending, particularly in the context of very low interest rates and a slowing economy, is desirable.

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