Throwing money at problems (cont.)

Yes the PM wants to save Woolies! Hooray! Or not.

Woolies is dead because no-one wanted to buy the things it sold. That is the market verdict. Shoppers may shed a nostalgic tear but when it came to it they were not following such views with their cash. Thus neither should the taxpayer; the priority, such as it exists, is to ensure employees can be found new jobs, much as any newly unemployed citizen should be treated.

At times of budget-busting spending by the state it is especially silly to make noises about using state cash and assistance to help firms survive. Deloitte as administrators need to get cash to Woolies' creditors whilst cutting prices on unsold stock - an action which would benefit the consumer, especially at a time when we are facing an austerity Christmas.

ETTL feels for those who will lose their jobs because of Woolies' demise; but I do for all who are suffering because of the downturn, not just those who some argue should get other people's money because of some sentimental fiscal policy. Creative destruction is what creates the next Woolworths; the PM should remember that.