Mangled Thoughts

The tax and spend habits of each tier of govt. One upshot, it cripples savings and the capacity to save, reflected in the extenisive usage of negative gearing. Inflation, as the Austrian school of economics point out regularly, is the reason for the `boom and bust business cycles’, by inducing malinvestments, the forging of money corrupting price signals, reflected in sharemarket and property market bubbles which, sooner or later burst. The habits of each tier of govt., taken with planning constrictions, stamp duties, purchase price subsidies ( first home buyers’ scheme) raises the price of property, govt. consumption and tax heist, has induced further allocation into housing. For the tax hits against investing outside of super and negatively geared property punishes allocation of savings into production.

The motive for the above cursory summary is, someone from a super company has just enumerated the above on ABC radio. Oddly enough, while arguing for a correction tot he underlying problem on the part of govt., he went on to say, however, savers should not be allowed to much choice , lest, for eexample, they “ set up their own funds”. When Keating announced in 1985 compulsory superannuation apropos ex nihilo, super companies joined in the announcement, saying what a wonderful and necessary thing it is. Well, of course, it gave them a govt. imposed monoply, for a time, over savings and their application. Except for one thing, the craven officers of those companies did not see what was blatanltly transparent at the announcement, compulsory super was a sitting duck for the Govt. to shoot at by wya theft -taxation. When the penny dropped, the super companies whined and gnashed their teeth, but it was too late. Meanwhile, all and sundry were the real losers, from savers to entrepeuners making capital work.

Without the punishment dished out by each tier of govts, completed by fiat money, the reality is most are capable of running their own financial affairs. The individual does not have to come from `wealthy families’, what is required is govt. which will, for once observe the distinction between meum and tuum.

The crippling asasault on private property, inclusive of tax on revenues and its split between income as consumer goods and savings, by each tier of govt. not only puts a spoke on progress but, as another consequence , fuels unemployment, or lower living standards, or both, and the latte si the case.

Kenneth Davidison is horrified that labour markets should be liberalised, well somewhat, since the reality of the Federal Govts. `reforms’ is still that of central bureacratic control over contracts. Regulation, Mr. Costello, does not equal the rule of common law at all. Instead, Davidson’s grand design is govt. consumption and `make work’ schemes. Kenneth Davidson is an economics writer for Mao’s Red Age.

Two articles by Brookes. News clear up a couple of things , on employment, and living standards:

Productivity, wages and labor marketsGerard Jackson
BrookesNews.Com
Monday 29 November 2004

Wages and labor markets
Gerard Jackson
BrookesNews.Com
Monday 29 November 2004

Oz is dominated by the full spectrum of the socialist rainbow and even the Coaltion cannot come to grips with, there is no pot of gold at the end of it, it is simply ruinous. And too many in business hold a crude salesman’s ptich, people should simply buy what we tell them to buy. They are not marketers at all, they are not simply protectionsists, even by indirect routes per regulation, the are underneath, still hanker for a producers’ command economy - the failure of govt. is not to secure that for them is their notion of bad govt. Are they really businessmen, one says no they are not.The chap cited above is an instance: freedom (of choice too), oh yes, for themselves .They are on the right band of the socialist spectrum to the left band. Stealing, lying, userers all of them.