It is near impossible to imagine any private company not enjoying the "problem" of high demand for its products and services. Yet there are some products that are repeatedly reported as shortages. There is one thing these products have in common: government intervention, typically in the form of price controls.

This is especially the case with water in Melbourne, Australia, and has been for at least a decade. While supply of water is in many ways a complex issue, understanding economic shortages is not. Read more

It turns out that Australia's Prime Minister Kevin Rudd is going around town breaking windows by, well, demanding they be built. There are over 35,000 construction and maintenance projects planned across Australia over the next 12 months. This includes AU$49 (US$39.4) billion dedicated to "nation building infrastructure," or crudely AU$2,200 in taxes for every man, woman, and child residing in Australia.

Are such decisions financially wise during economic recessions? Let's put Keynesianism aside and instead rely on common sense. While on an individual level you might think saving would be a good idea, apparently governments just want to build stuff. "We can always figure out later what to do with it or even just employ people to knock it down and build it again" is the unspoken idea. When "full employment" is the goal almost any type of labor will do. PM Rudd's Labor party is thus aptly named; as they state, "jobs are in our DNA." Read more