I turned from reading Chris Berg and Sinclair’s serious and excellent article on our real tax problem in the Financial Review to its next door neighbour by Brian Toohey dealing with super which must have been provided for comic relief. What is one to make of its opening two sentences?

Australia has a savings glut. So does much of the globe.

One of those mistakes no classical economist would make but every Keynesian does. Could a modern economist even begin to understand why a classical economist might have thought differently? Probably not, which is why we will raise taxes, maintain public spending and lower interest rates and never know what we are doing wrong.