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The government’s lack of a strategy to revive the economy was on full display last week as it hosted its annual charade of an investment conference, while the Reserve Bank increased rates for the third time since November 2021. The Bank’s move, and the austerity policies announced by the Treasury in the 2022 budget, will reduce GDP growth, the most important indicator that influences a company’s decision to invest.

I am an unreconstructed Keynesian. Private investment follows GDP growth. It does not kick-start it. All the talk about increasing business confidence, deregulating the economy and reducing red tape is just hot air. It will make no difference if there are no customers at the door. The guaranteed outcome of such macroeconomic policies will be rising unemployment, poverty and inequality until the national election in 2024 and beyond...

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