This is a good summation of many problems. I would add though that any analysis has to accept that the Labor Party (with the Coalition being unaware bedfellows) have created a captive class of rent seekers who are reliant on government largesse to fund their lifestyles and will vote accordingly. This is true for the public sector, as it is true for selective private sector enterprises where the spigot of never-ceasing public financing is the only thing that keeps their lights on. In effect, there is an element where Labor rewards their friends in these industries by punishing their enemies in the productive part of the private sector.
The Coalition are no different and are worse insofar as their are totally unaware of how State capture works. One reason why the Coalition in power feels like a slightly crankier version of Labor is because they broadly follow the same prescription of giving money out to preferred private and public sector voter groups. As the quality of politicians and public servants steadily declines and the quality of the rent-seekers on the other side of the equation grows, the productive side of the Australian economy is continually squeezed (or more migrants are let in acting as a form of diminishing marginal returns on the sugar rush of a larger domestic market) and the more the overall state of the economy declines.
Hard to disagree John. While the covid phenomenon did bump public debt the deterioration has its origin in, my estimate, the third Howard government. Its appearance was subsequent however industrial regulation has continually added cost and led to productivity stagnation and decline. Yes, there is much more however the continual upgrade of union authority is an investor turn off. Add the Big Govt breakout and we have the devastation of ordinary Australian's socio economic future.
Very good piece. Also, just imagine what the inflation rate would look like if they included mortgage interest payments, share prices, income tax, HECS repayments, stamp duty, as well as the other items that they exclude or "trim" to manipulatime the data.
Very well said. I own a lot of Australian coal equity in my super fund, and my biggest worry that the royalty regime will become even more egregious. And I worry about gold mining windfall taxes too. Jurisdictional risk. I wouldn't have minded so much if the QLD govt had used the windfall to do something constructive, like pay down debt (or even build another power station - now there's a thought ?) instead of trying to win another term via power bill subsidies.
Would you be able to better explain your paragraph starting with: "More disturbing was unsolicited commentary during a roundtable discussion. One trading outpost...."
The fiscal train is off the rails and heading over a cliff and nothing can stop it. And all aboard are not only governments at all levels, but public institutions, the universities, the media (ABC), religious and welfare organisations. They not only think the situation isn’t serious - they all demand more spending. However, it’s one thing to pay for it with taxation … it’s an entirely different thing to pay for it by borrowing… which is inflationary. That’s ruin!! And, it’s particularly painful because it’s all self inflicted.
Alexander Fraser Tytler (1747-1813) put it best:
“A democracy cannot exist as a permanent form of government. It can only exist UNTIL the VOTERS discover they can vote themselves largesse from the public treasury.”
“Australian inflation is primarily driven by a mix of supply chain bottlenecks, high energy costs, increased corporate profits, and strong post-pandemic demand. Key factors include global disruptions (e.g., Ukraine war), local floods/weather events, increased rental costs, and a significant buildup of household savings. “
No mention of government spending there old boy! Though wrsther events aka climate change get a guernsey. Your post is 100% toxic bullshit as usual. I am starting to think Gina and Clive slip you the odd few hundred dollars to keep the crap flowing! Post a denial and I will apologise.
You want a more authoritative source? Try Chris’s old mate Mathias.
“From December 2019 to June 2023, inflation in Australia rose faster than it has in 30 years. Over this time, the share of national income going to corporate profits also increased substantially.
At the same time, the share going to wages and small businesses declined.
The profits made by large corporations during this time are huge: some $100 billion over and above their pre-pandemic profit margins.
According to Australia Institute research, these rising profits made up more than half of the inflation above the Reserve Bank of Australia (RBA)’s target range of 2% to 3%.
The link between profits and inflation in Australia was replicated in research by the Organisation for Economic Cooperation and Development (OECD), headed by former Liberal Finance Minister Mathias Cormann.”
No reply to my question? Since you don’t deny it I will assume you are a paid propagandist. A conclusion that can be inferred from the material you publish.
This is a good summation of many problems. I would add though that any analysis has to accept that the Labor Party (with the Coalition being unaware bedfellows) have created a captive class of rent seekers who are reliant on government largesse to fund their lifestyles and will vote accordingly. This is true for the public sector, as it is true for selective private sector enterprises where the spigot of never-ceasing public financing is the only thing that keeps their lights on. In effect, there is an element where Labor rewards their friends in these industries by punishing their enemies in the productive part of the private sector.
The Coalition are no different and are worse insofar as their are totally unaware of how State capture works. One reason why the Coalition in power feels like a slightly crankier version of Labor is because they broadly follow the same prescription of giving money out to preferred private and public sector voter groups. As the quality of politicians and public servants steadily declines and the quality of the rent-seekers on the other side of the equation grows, the productive side of the Australian economy is continually squeezed (or more migrants are let in acting as a form of diminishing marginal returns on the sugar rush of a larger domestic market) and the more the overall state of the economy declines.
Hard to disagree John. While the covid phenomenon did bump public debt the deterioration has its origin in, my estimate, the third Howard government. Its appearance was subsequent however industrial regulation has continually added cost and led to productivity stagnation and decline. Yes, there is much more however the continual upgrade of union authority is an investor turn off. Add the Big Govt breakout and we have the devastation of ordinary Australian's socio economic future.
Very good piece. Also, just imagine what the inflation rate would look like if they included mortgage interest payments, share prices, income tax, HECS repayments, stamp duty, as well as the other items that they exclude or "trim" to manipulatime the data.
Australia in big trouble.
Very well said. I own a lot of Australian coal equity in my super fund, and my biggest worry that the royalty regime will become even more egregious. And I worry about gold mining windfall taxes too. Jurisdictional risk. I wouldn't have minded so much if the QLD govt had used the windfall to do something constructive, like pay down debt (or even build another power station - now there's a thought ?) instead of trying to win another term via power bill subsidies.
Thanksyou Mike.
Would you be able to better explain your paragraph starting with: "More disturbing was unsolicited commentary during a roundtable discussion. One trading outpost...."
Austrade is pushing smelting as a virtuous Future Made in Australia opportunity.
The fiscal train is off the rails and heading over a cliff and nothing can stop it. And all aboard are not only governments at all levels, but public institutions, the universities, the media (ABC), religious and welfare organisations. They not only think the situation isn’t serious - they all demand more spending. However, it’s one thing to pay for it with taxation … it’s an entirely different thing to pay for it by borrowing… which is inflationary. That’s ruin!! And, it’s particularly painful because it’s all self inflicted.
Alexander Fraser Tytler (1747-1813) put it best:
“A democracy cannot exist as a permanent form of government. It can only exist UNTIL the VOTERS discover they can vote themselves largesse from the public treasury.”
An example of Red tape.
I applied for a High Risk Work license (a forklift ticket) on the 5 Jan, today I was notified that my application had been received.
The application was done online with all supporting documents.
Unbelievable
Expected to be assessed within 45 days.
Plus in the last 2yrs, 1.2million immigrants and 80% of new jobs are ultimately government payrolled. Ponzi ?
Hey look. AI knows more than Chris.
“Australian inflation is primarily driven by a mix of supply chain bottlenecks, high energy costs, increased corporate profits, and strong post-pandemic demand. Key factors include global disruptions (e.g., Ukraine war), local floods/weather events, increased rental costs, and a significant buildup of household savings. “
No mention of government spending there old boy! Though wrsther events aka climate change get a guernsey. Your post is 100% toxic bullshit as usual. I am starting to think Gina and Clive slip you the odd few hundred dollars to keep the crap flowing! Post a denial and I will apologise.
Yes 'artificial intelligence' to suit the occasion.
You want a more authoritative source? Try Chris’s old mate Mathias.
“From December 2019 to June 2023, inflation in Australia rose faster than it has in 30 years. Over this time, the share of national income going to corporate profits also increased substantially.
At the same time, the share going to wages and small businesses declined.
The profits made by large corporations during this time are huge: some $100 billion over and above their pre-pandemic profit margins.
According to Australia Institute research, these rising profits made up more than half of the inflation above the Reserve Bank of Australia (RBA)’s target range of 2% to 3%.
The link between profits and inflation in Australia was replicated in research by the Organisation for Economic Cooperation and Development (OECD), headed by former Liberal Finance Minister Mathias Cormann.”
https://australiainstitute.org.au/post/corporate-profits-increase-inflation-fact-sheet/
Oh the Australia Institute find that inflation is caused by greedy corporations. Shock finding!
I note they also propose ‘price controls’ but only when there’s an emergency. Brilliant.
Glad that you agree.
I am aware of the Australia Institute opinion. But I will read it later and comment. BTW, Cormann's presence is not relevant
If someone on the same side of politics disagrees with the position stated, that is relevant. The disagreement highlights the uncertainty.
You are extrapolating
…..which is an evidence based process.
No reply to my question? Since you don’t deny it I will assume you are a paid propagandist. A conclusion that can be inferred from the material you publish.