Monday, December 02, 2002

Whitlam's Legacy
I didn't write this letter in the Australian today, but I wish I had:

JULIAN LEESER exposes two myths about the Whitlam government (Opinion, 2/12).

A third myth is the Whitlam government was brought down by Sir John Kerr. The Whitlam government was brought down by economic law.

You cannot distribute more wealth than is created. You cannot print more money without increasing prices. You cannot go into deficit without pushing up interest rates. You cannot solve economic problems by government intervention. You cannot expand the welfare state without discouraging and disrupting production.

The Whitlam government ignored these basic truisms and paid the price. And its economic policies have become a permanent drag on the economy.

The purpose of the Whitlam government was the pursuit of "egalitarianism", ie socialism. Ironically, in its pursuit of a classless society the Whitlam government ended up creating three new classes – political, grasping and bureaucratic – and the hapless Australian taxpayer and the inflation ridden Australian consumer has been paying the price ever since.

Victor Diskordia
McKellar, ACT

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