Sapoty Brook, Main Arm
I apologise for boring the economic cognoscenti, but I experienced a light bulb moment recently when hearing the clear distinction that a national economy is not bound by the same rules as a household!
Besides the fact that a national economy can, to some degree, adjust interest rates, there is also the well known option to ‘print money’ (do not try this at home). In other words, a national economy can increase or decrease the money supply, which is known as a monetary policy.
Fiscal conservatives and neocons may have uncontrolled bowel movements when exposed to this option. But a few decades ago it was a commonly accepted economic tool.
Increasing the money supply tends to increase inflation, which is something we could, in moderation, benefit from right now. When an economy is paralytic, like ours at present, increasing the money supply can feed activity.
But moving beyond the money mentality, we could see this need to build the money supply as a wonderful opportunity for government investment to dramatically expand Australia’s renewable energy supply and storage.
Tic tok, tic tok, climate emergency, it must be time for an Extinction Rebellion.
This year is our last chance, and it’s only the head count that politicians respond to.