Beware of jumping the gun on Arrium in Whyalla – Paul Kerin

In his article in today’s Australian (available here), Paul Kerin argues that governments must be weigh decisions to assist private businesses very carefully. When businesses are about to be sold through a competitive tendering process, governments jumping the gun can simply waste taxpayer dollars for no benefit. Governments must also critically assess claims about the flow-on economic effects of the closure of private businesses, as such claims typically overstate the gross effects of closure and ignore the benefits of closure if of businesses of they prove to be non-viable.

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