Year: 2012

Arguably, the messiness of the modern world seldom lends itself to easy characterisations. Though it would be nice to abbreviate topical debates, the Left-right dichotomy only gets you so far. Not least because what is Left and what Right changes over time.

Does Europe’s crisis have the potential to derail the Australian economy? How can the European crisis spread to Australia? And are there opportunities for Australia amid the European catastrophe?

Readers do not have to agree with every single prediction or assessment in Tanzi’s book, and may even miss a more clearly spelt out recipe of how to reduce government to the smaller size that the author deems sufficient to fulfil the functions of a modern state. But Tanzi’s well-written, thoughtful and thought-provoking book will leave readers better informed and better able to engage in debates about the future role of the state in the economy.

Australia is a country that barely understands, let alone appreciates, its own luck. Being so close to good fortune can make us blind to it. I sincerely hope it will remain the lucky country.

Australia is on a slippery slope of becoming more like European countries. If the government continues to spend big and finance it through deficits, the future tax burden may have to rise substantially to pay for a growing debt burden.

The question marks hanging over the future of Holden and Opel are substantial. It is courageous, in the ‘Yes, Minister’ sense at least, of any government to subsidise carmakers in these circumstances.

Economically, whatever happens in Ireland will not be decisive for the future of the euro. That is more likely being decided in Berlin, Frankfurt, Paris, Athens and Lisbon. But to the rest of Europe watching the farcical march towards a pseudo-referendum on a pseudo-significant agreement, it is a reminder of the anti-democratic tendencies of the EU.

For a society of free individuals to work, or to at least avoid social conflict, there needs to be some common ethical ground. This is being eroded by the welfare state for the underclass. Meanwhile, at least parts of the upper class have apparently decided they can get further without sticking to traditional rules of behaviour.