‘Australians are now paying a really hefty price for the economic mismanagement that this country has endured for the best part of a decade…
‘A key feature of our economic plan is about repairing these broken supply chains — it’s a direct and deliberate response that were left to gather and grow larger over that wasted decade we’ve been through.’
These were the comments of our Treasurer Jim Chalmers yesterday. A potshot aimed squarely at his political opponents in the Liberal party.
As they say, though, talk is cheap.
I don’t want to get stuck in the political weeds of this issue, but it is frustrating to constantly see comments like these. No matter where your political standings may lie, it’d be better to see more action and less words.
Chalmers can call out his opposition all he wants, but until he provides some concrete solutions himself, then he really doesn’t have a leg to stand on. After all, plenty of Aussies are crying out for more infrastructure investment…
The backbone of the economy
Earlier this week, the ABC published an article about the desperate outcry to fix damaged road networks. As they report:
‘In the past 12 months, the Rural Roads Alliance says there have been 23 flood events and 429 flood declarations across 277 local government areas nationally.
‘One of the major casualties of the extensive flooding has been the road networks.
‘It says that in NSW alone, there are roughly 10,000 kilometres of damaged roads.’
The problem is that few people rarely think about the importance of these roads.
Every delay, every setback, and every pothole leads to longer transit times. Without the right amount of upkeep, these damaged roads are only exacerbating the supply chain issues facing us all.
Because as much as it may seem like an innocuous issue, every bit of pressure adds up. And as a result, the government is now being asked to finance a $5.5 billion repair effort.
You don’t see Jim Chalmers making any comments on that, though, do you? And that is precisely the problem.
No one is really taking these problems seriously.
No one except Jim Rickards…
Why the future may be ‘Sold Out’
See, Rickards has long been an astute market observer. He has lived through and seen a lot of what the market can throw at people. Which is why, when he hones in on an issue, people listen.
Rickards is respected because more often than not, he’s right. And on top of that, he’s willing to dig into issues that others aren’t.
That’s what makes his latest message so crucial. Because as he explains in his new book, ‘Sold Out!’, the world’s supply chains are still at risk.
The pandemic may have broken them, but governments will need to fix them. As my colleague James Cooper wrote in The Daily Reckoning Australia yesterday:
‘The US has an enormous task ahead if it’s to avoid economic decay. Modernising its vast infrastructure will be the springboard that rejuvenates its economy for decades to come.
‘Utilities, fibre optics, railways, bridges, and roads are the fertile grounds that allow businesses to flourish…efficient transport and reliable supply chains are the lifeblood that fuel economic growth.
‘That’s why the US will move Heaven and Earth to act on its multitrillion-dollar commitment to rebuild and retain its status in the global economy.
‘It simply cannot afford to let its roads and bridges crumble.’
Australia is in exactly the same position. We need to shore up our infrastructure with more investment and more initiatives.
Whether governments can actually act in time though is the crux of the matter, however. It’s going to take a whole lot of time and money to do what needs to be done. Time and money that the politicians don’t have…
It won’t stop them from trying though, I’m sure. A predicament that will get the people — all of us — to foot the bill.
That is why you should be listening to what Rickards has to say.
Because he is trying to protect investors like yourself. But don’t take my word for it, see what he has to say for yourself by clicking here.
Regards,
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Ryan Clarkson-Ledward,
Editor, Money Morning
