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Australian Prime Ministers

Trust me, I'm an economist


It seems that tax cuts are all the rage with the PM praising Trumps bold initiatives and vowing to push through similar (but smaller) cuts in Australia. Bill Shorten, while not opposed to this form of pea & thimble trick has tentatively suggested that the the government ought to say how these cuts could be funded. Well the answer is all there in the history books. Ronald Regan while not the first to use tax cuts was however the one who tried to justify it by claiming the cuts would so boost the economy that tax revenues would increase even more than the loss incurred by the cuts. It became know as trickle down economics which then morphed into voodoo economics when it was found that the national debt had doubled. To his credit John Howard learnt two things from this débâcle - tax cuts win votes and any problems created will be inflicted on the next government.

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