Mangled Thoughts

Posted by D
What is wrong with the statement below?

2000 to quit sugar despite handout
By Greg Roberts
28apr04
“If you are 55, you’ve been on the land for 40 years and for no apparent reason your livelihood is threatened, you get angry about it,” he said.

Answers:

1. The reasons are not mysterious novelties;
2. The reasons and sugar production is a textbook study in what happens when govts. rig, fix, protect, subsidise any side to a market, in this case producers. Eventually, uneconomic, not profitable operations will still fold, be sold off.

It is something both State’s and federal govts. have not, it seems, learned with regards to the automotive industry. Making the Mitsubishi affair worse is the Rann govt’s. promise to make life hell for Chrysler and Mitsubishi should they shut shop in Oz. Next to protection and subsidies, following Rann’s comments on news reports last night, one could be mistaken in assuming it is a major backer of Mitsuibish and wants some of its capital back. Rann and the federal govt. as also the Vicotrian govt. have simply robbed real taxpayers and ensured capital has been expended on ventures which are a drain.

As long as govts. persist with intervention, protectionism, `redistribution’ and so forth, collapses as also of cane production will continue to occur. But then, it is really, rectification of malinvestments. The ugly part is, in corrupting markets, of any type, govts merely ensure far great havoc, with temporary, though difficult, consequences such as sudden unemployment in large numbers.