I forgot about it - just remembered:
If Australian households are to save more money, then the best incentive is for money to become more valuable. This means not just fighting inflation but killing it off. It also means creating greater returns over a longer period.
If Kevin Rudd wants us to save more he should encourage the Reserve Bank to raise interest rates.
Raising rates will hurt us in the short term, but help us in the long term. This is because people will be more likely to park their funds in interest-bearing savings accounts and term deposits than to spend them on LCD televisions from China.
Encouraging national saving will result in a lower current account deficit and make our economy stronger. It can't come from Mr Rudd's tinkering but it can come from higher interest rates.
Neil Cameron Waratah