We all want to keep more of what we make, and to spend it as we see fit. Politicians won't support change unless their power positions are threatened. Protectionist policies, excessive regulation, taxes, and government mandates make businesses move elsewhere for a less restrictive environment.

Some lessons for investors. As our population grows there’s no doubt we will need to embrace the apartment culture. Fortunately our lifestyle preferences are changing, with many gen Ys prepared to trade a backyard for a balcony.

As Groucho Marx once put it, you have to learn from the mistakes of others because you can never live long enough to make them all yourself. If Australian policymakers heeded his warning they could save the $10 billion they are prepared to commit to the Clean Energy Finance Corporation.

In this case the mistakes of others were previously made by the Germans. For more than a decade, dating back to the election of the Social Democrat-Green coalition government under Chancellor Schröder in 1998, the Germans have pioneered the introduction of renewable energies. However, in designing policies to move closer to a clean energy future they made some basic mistakes of economic logic – mistakes that Australia is just about to repeat.

The current crisis of Europe has no lack of material tragedies and personal hardship. The periphery economies are in a sharp tailspin, driving thousands of companies out of business. An entire generation of young and educated people in southern Europe cannot find jobs. And for those lucky to remain employed, life is becoming unaffordable because of falling wages and rising prices.

Beyond these visible effects, the fiscal and monetary crisis is causing severe collateral damage to the philosophical constitution of Europe. This is jeopardising the political and economic recovery.