Posner and Becker’s excellent blog is well worth reading (for those that don’t read it, they take a subject and each write a short post): the posts are not too frequent, and they are always high quality!
Their most recent subject is the sluggish recovery – and on this subject, I think Posner nails it. Posner argues that an increase in capricious regulation and uncertainty about the future (especially the regulatory environment, but that’s just among other things) is sapping animal spirits. Read more here.
I think Posner’s conclusion applies to Australia too — both directly, in that our multinationals suffer from global uncertainty (also our banks have to spend billions due to Dodd-Frank … for no benefit other than compliance) and directly in that the weak Federal Government lacks authority and therefore is unable to create certainty on any subject.