Defense spending gave a government direct control over where its money went. Tax cuts for wealthy people did not ensure that subsequent investment would remain in the domestic economy. Investors could choose companies abroad. Funding construction in Australian yards offered a more direct way to support Australian industry during the downturn.
Notable Point · 2:40:48-2:41:50
Why domestic shipbuilding orders differ from tax cuts
Domestic shipbuilding orders could direct spending into Australian industry, while tax cuts left investment choices to their recipients.