I sometimes wonder if there any lights on upstairs in Canberra, it proves again how the politicians have no idea what the effect of their rants are in the real world or the effect of these pontificating of such impossible Taxes (Yes, let’s call it a tax, because if it looks like a tax, and sounds like a tax then ….). This single proposal has the effect to take away our insulation from the effects of the global downturn, and the ongoing deficit problems not to mention deflation (which if it is by itself, may not be a bad thing in the long term).
As I have mentioned before, you cannot dictate to companies of the size of BHP Billiton etc… a true multi-nationals… without consequences - these companies have projects and investments globally. Adding this tax will have an immediate effect on their viability (of their Australian operations). Australian coal, and Iron Ore etc are already amongst the most expensive in the world… they cannot increase the price (especially after completing negotiations recently in China) – so they will focus their future focus outside of Australia which will mean less sales in the medium-long term, what is going to support the Australian dollar and the Australian economy then… Labour financial modeling? I don’t think so… but I am sure the Labour party will spin it so it is someone else fault… Politicians have a convenient short term memory, especially when it comes to their own mistakes.
Perhaps we should have some political reform;
(1) Ministers have to actually know something about their portfolios
(2) End.. political careers (State & Federal), there should be a limit of say 3 terms on any politician, Upper and Lower Houses
(3) Politicians have to spend “x” years in the business / commercial world before their stint in Canberra
(4) Stop this favoritism for the Super funds for Canberra… after all it’s a temp job… like any other.
(5) Run the country like a company for the benefit of its shareholders / citizens, because you are dealing in people’s and their children’s lives as well as their future here – not to mention the countries future.
I always thought that the Labour dream team, financially were away with the pixies, and I think except for the pragmatism of Julia Gillard (she has to lose the “them and us mentality”, after all, she is a representative, not only of the Labour party but of ALL Australians…but I have hopes), they really are. I have never had a lot of economic respect for the ability of Swan who does have few innovative thoughts about the economy, but now Rudd has showed the flaws in his leadership style.
However, I am not prepared to swap the financial irresponsibility of the Labour party yet … because that would mean we would need to give the keys of the country to Abbott, and I see no upside there… but if the opposition actually do get a credible leader then all bets are off.
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