BRIAN KANTOR: Uncle Sam saved his economy while our Bank blundered
The Reserve Bank should have followed the US example and done far more when incomes were destroyed
The steps taken in the US to counter the destruction of incomes and output caused by the Covid-19 lockdowns must be regarded as a resounding success. Real US output is now ahead of pre-Covid levels. By the end of the year GDP may well have surpassed that which may have been expected without the lockdowns.
It took lots of income relief — cheques in the post from Uncle Sam — supplemented by generous unemployment benefits and relief for businesses. The extra income means extra deposits with the US banks, to be spent later or exchanged for other financial assets: real estate, bitcoin or precious metals...