In 1973, when inflation was running hot and Australia was tumbling towards a recession, Prime Minister Gough Whitlam ordered government ministers to travel in economy class.
Albanese could learn much from his spendthrift predecessor Gough Whitlam about pulling in spending as a recession looms for struggling Australians
Even so, the current Prime Minister could learn much from his predecessor, who at least understood the basic economic principle that government spending fuels inflation. The delusion that governments can spend their way out of recession has been the undoing of many banana republics. It is a recipe for stagflation: the deadly combination of stagnant growth and high inflation we last encountered 50 years ago under Whitlam.
Raising interest rates is a brutal instrument that punishes the thrifty: the third of households who have taken out a mortgage to invest in a home of their own.
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