When the government finally tightens credit, these malinvestment reveal themselves in the form of idle capacity and unemployment. That he evidently cannot make the connection between inflation and its aftermath tells us a great deal about his level of intelligence. All of which brings us to our appalling level of unemployment. This has been caused not by lack of inflation but by labour being priced out of work. It really is that simple.
Inflation only puts people back into work by cutting their wages.
Once unions cotton on to this and they already have the trick fails. Unfortunately, Elliot is not even able to see through this simple but cruel deception. That someone of his standing in the business community and the Liberal Party can seriously make such a statement is incredible. However, it does give us a depressing idea of just how low the intellectual level of many of our boardrooms must be.