Inequality and growth? An oxymoron if ever there was one?

This morning on radio, I heard a regional Mayor belating the worsening economic circumstances of his drought ravaged community! With tendered solution that relied almost exclusively on passing trade and tourists?

Like folks from other equally depressed local economies are going to go out more often and spend more money! And Trickle Down/Economic Rationalism economics at its very finest, in operation.

Bill Shorten is onto something, and highlights the fact that some folk have misused family trusts to make them operate as tax havens and little else?

What's to be done? Well the best response is to remove any and all incentive to use "tax havens" here or abroad. By lowering the tax rate to a flat tax rate of 15%, which without any inherent reductions for business costs whatever, effectively meaning increased government revenue!

All while removing any incentive for some very creative accounting!?

With that gone, so also is any necessity whatsoever of tax compliance and tax compliance costs!

Meaning, an average saving of an averaged 7% to Australian businesses! Which can then be returned to the bottom line and or be reinvested in growing the business!?

And when applied, produce an adjusted effective tax rate of just 8%!

And with that in place end the need for fiddled returns, and family trust tax haven, negative gearing tax havens and capital gains subsidy, tax havens!

And indeed all off shore tax havens which would become entirely counterproductive and cost the tax dodger more tax, than would result/incur if just left or reinvested here.

We talk about smaller government, yet govern this country as if if were seven different countries all competing for the lowest common denominator at the greatest possible cost and wasted resources!? TBC.
Alan B.

Equality and growth is very possible with preferenced cooperative capitalism, some of which will of necessity be the brainchild and creation of facilitating and financing government!

With first cab off the rank being the most affordable carbon free or carbon neutral energy!

The first being cheaper than coal, thorium. And able to be factory mass produced, as walk away safe, molten salt, thorium reactors. For around one third of conventional coal fired power or coal comparative, large scale solar thermal!

The second, very local domestic power production utilising, wasted waste. Which instead should be digested on site and the resultant methane scrubbed and used in ceramic fuel cells, where given a chemical reaction and not combustion per se. Plus the high atomic hydrogen ratio in the methane molecule, the exhaust product is mostly pristine water vapor!

Where this to be grown as competing co-ops competing for business, with credit union finance etc, we could completely resuscitation the steel industry then massively turbocharge it as the locally invented single step method of steelmaking, and if powered by thorium, and assisted with maximised automation? The cheapest in the world with the lowest carbon footprint!

Look far and wide, and nowhere can one find a successful and growing economy, minus a robust, metals smelting (steel aluminium) industry!

Nor more successful industries than the cooperative model! And the only prospect for a future with both guaranteed robust growth that leaves nobody behind, but increases equality with every passing decade!

Yes it will take time, the brains we were born with and the complete jettisoning of some favorite ideological imperatives!

And given our parlous state and the world! Not a minute to lose and not a minute too soon TBC.
Alan B.

Gillard didn't do so well out of trying to beat up the Class War. She had Gender War as well, but that failed miserably as well. The last was more about a pre-made speech and men's wristwatches apparently.

As long as Shorten isn't worrying himself about anything real, like those Struggle streets, that Labor ex-Leader Latham so 'unfairly'(sic) drew attention to,

Former Labor leader Mark Latham slams Labor over gay marriage
MAY 27, 201510:23PM

FORMER Labor leader Mark Latham has slammed his party’s “obsession” with gay marriage saying it should focus on the nation’s “Struggle Streets” instead.
He told 3AW radio Bill Shorten’s private members bill to push for changes to the marriage act to allow same-sex couples to tie the knot, to be introduced into parliament on Monday, was nothing more than a symbolic gesture.
He said the biggest social issue facing Australia was unemployment, drug use and homelessness in suburbs such as Mt Druitt which was the focus of the SBS documentary, Struggle Street.
“If you are interested in equality and social justice in Australia then what was the really big event in the month of May,” he said. “We had the Struggle Street documentary which revealed that in the nation’s public housing estate, most notably in Mt Druitt people live in conditions that you wouldn’t wish upon your dogs. Absolute chaos, despair and hopelessness in their lives.
“And surely, you would have expected a serious national response from the party of social justice?
“We didn’t hear anything.
“They’re obsessed, instead, by gay marriage.”

http://www.news.com.au/lifestyle/gay-marriage/former-labor-leader-mark-latham-slams-labor-over-gay-marriage/news-story/6c89f7077536bf321ee40c25946e6f0f

Which reminds that it is Labor and Greens who have been riding gays bareback for years for tres 'Progressive' headlines, but now that free ride is all but over. They are having to cast about for new things to protest that might have some longevity and can be dumbed-down for the ABC's Q&A Ultimo Hipster audiences.

Really, really affordable energy is just the major half of the growth equation, the other half, is also affordable, water.

None more affordable than desalinated water utilising the world's cheapest energy and deionization dialysis.

This brand new, space age, Dutch invented, desalination method, even when reliant on far more costly coal fired power, still managed in some Texas trials, to produce 90% potable water, still cheap enough for cost effective irrigation!

If drought ravaged communities could have some of this, introduced as cost effective irrigation and drought proofing! It'd be money in the bank and an ability to pick crops, with the highest international return/demand/profit! Cotton, cane, come what may or cannabis

The trick is to keep this new, inexhaustible water, out of the hands of profit demanding middlemen and the usual water barons. One and the same thing really?

And only doable actually, if rolled out as government facilitated and financed or by an underwriting government!

Government guarantees, would leverage our two trillion super fund and around another lazy two trillion residing in international corporate coffers, looking for a better return than on offer offshore!?

Our doable dreams need to be outside the box and the biggest we can imagine! Thinking small and safe has produced today's result and an economy in terminal decline!

Can't died in a cornfield over a century ago! Won't has endured and looks just as sprightly, load, abusive and active as ever.

Don't hold your breath waiting for (coal share owning) self identifying, pollies to get enthusiastic or even mildly lukewarm? They'd sooner die in a ditch?
Alan B.

The entire wages and salary structure in Australia needs a good shake up and review if any semblance of equality is to be attained.
JC himself isn`t worth half a million dollars a year. Let alone others.

The politics of envy. The left always return to it, when they have nothing else to say.

I don't give a damn how much the other bloke gets, provided there is enough for me to have a decent life. So far I have little to complain about, even now on the pension.

If I were to complain it would be about waste, particularly in the public sector, with tens of thousands of unnecessary bureaucrats on inflated salaries doing nothing useful.

That of course goes double in education, particularly the university sector. Expanded incredibly over the last couple of decades with thousands being paid a lot for not very much. Education for the educator, not the student.

Anyone who is prepared to do a decent day's work can still do very well in today's Australia

A small minority of people have always had more money that the majority. That's not going to change, and it is stupid to think it should. Who really cares what Mr. Big has as long Joe Blogs has ample to cover his needs and live with dignity. It seems to me that some people just want to be rich for the sake of being rich, even though there is only so much money anyone can use.

If Shorten and his wrecking crew were really interested in the plight of the people they are supposed to be representing, they would be lowering immigration targets from 200,000 to 70,000, what they were prior to John Howard's massive increases designed to control the people who are supposed to be Labor's constituency - the workers. This anti-worker plot has ensured sweet FA in wage increases, and the increase in GPD from more people has to be spread around more people, too.

Shorten has a hell of a cheek talking about inequality when he and his party support anti-worker, high immigration policies.

yep the socialist think that those who sit home and smoke weed all day, watch porn and refuse to pick fruit should earn the same as those who get up and go to work at 6 each morning.

By stubbornly sticking to a 50% RET, Bill Shorten is inflaming inequality of Australian consumers.

The number who will be forced to disconnect from the electricity network because of sky-rocketing electricity prices will keep on growing. Bill ignores the inequality between keeping warm in winter and freezing in the dark.

The viability of businesses will be adversely affected, forcing many to close up shop (or factory or whatever) or to move offshore, with consequent thousands of job losses and lengthening dole queues. Bill ignores the inequality between being employed and being unemployed.

If he becomes PM, Bill would be leading the worst Labor government since Federation.

Congratulations Raycom for being one of few who understand the economic realities that affect us all! Except say, the carpet bagging, price gouging, tax avoiding, profit repatriation of, debt laden, alleged foreign investors/energy speculators!

And such a change from a completely self centred ultra judgemental Hasbeen, and thousands of Hasbeen clones and just as shallow, uncaring and thoughtless, who to a generic man, just doesn't get, when the great unwashed have less, so does he and the tiny few he genuinely give a rats about!?

Go do something far more productive Raycom, stop wasting rare wisdom and bash your head against a steel reinforced concrete wall!

Rather than cast pearls before risible recalcitrant moribund bacon/deplorable drop kicks?

Who live in a bubble and think we envy them for what they can actually take with them or possess always!

Like mausoleums or ruins with roofs? Adorned with signs that say, here lies the moldering bones of richest most ambitious man in dis yer graveyard!
Alan B.

runner, can you name any socialists who hold that opinion?
A single example will be sufficient.

But if you can't think of any, please quit your strawmanning.

_____________________________________________________________________________________

Raycom, there's a lot more to electricity prices than the RET.
Both parties have been a dismal failure at keeping electricity prices down. But though many in the older generations prefer to live a parasitic existence, the younger generations are aware of the problems this will create, and realise that the RET is better than nothing.

As for employment v unemployment, the real problem is that the politicians (in all parties, though the Libs are the worst) prefer the illusion of fiscal responsibility to the needs of the economy, hence they're obsessed with trying to get a surplus even though doing so at this stage of the economic cycle is futile, destroys jobs and weakens the economy.

Take note, ttbn: it's economic mismanagement, not the number of immigrants, that has prevented wage increases.

_____________________________________________________________________________________

Hasbeen, how long do the poor have to be excluded from the benefits of greater productivity before you cease to dismiss it as "the politics of envy"?

The decent life you have is now beyond the reach of many.

And your assumption of huge waste in the public sector runs completely contrary to the facts. It was probably true a few decades ago, but we've gone much too far the other way now: the public sector's understaffed, the work's not getting done, or is getting done by consultants, and the government ends up paying far too much.

Consider the School Halls scheme:
WA: the competent public sector carefully scrutinises every deal, delivering excellent value.
Vic and NSW: the public sector no longer has the capability, so it's managed by the private sector - but they do a terrible job, wasting huge amounts of money.

Why is it so hard for you to comprehend this false economy?

Alan you are becoming a bore. Try thinking for a minute before you run off at the keyboard.

Aidan anyone can do what I did. I came back to Oz in late 1976 after a few years sailing the Pacific with just a few thousand, enough to feed me for about 6 months.

Of course as I don't drink, smoke, gamble, or like clubs or restaurant I was infront of most. I worked in some pretty low paying jobs, a few years on islands, like $136 & keep for a 6 day week. With that I bought some land, & some more land.

I then met a lady, married a raised 3 kids. Neither of us ever earned above the average wage, but by 1988 we owned outright a 31 acre farm. Today with the ridiculous inflation we are worth a fair bit.

Not just me. My 26 year old daughter moved into her new home on an acre, with minimal help from dad at Christmas. It can be done, it does take some discipline but the results are worth the effort.

But yes you are right, I have no sympathy for those who blow their money on booze & gambling, then whinge they are poor.

Matthew ,
Thanks for a great article .
Those organisations that base their business model on more people , appear to have a simple outlook ....uncluttered by environmental constraints and visions of social equality and a high standard of living , for all .

But how does the growth paradigm become dominant in our Govt thinking ?
Especially so when you consider the creditor nation Denmark , with a basically stable 5 million people exports all over the World .... achieved by investing in research and manufacturing rather than the tragic Australian design of investing in more people and pollution .

Well , bankers , property developers, infrastructure companies, an army of consultants such as KPMG ( Bernard Salt ), etc etc ... all base their business models on the windfall profits of population growth ......

These windfall profits are funded either directly or indirectly by selling Government assets and by massive Government borrowings.

They are also funded by the banks sourcing overseas , a $100 billion per year , which is then on-lent , as inflated mortgages to Australian borrowers .

But at the same time that there are billions for growth and the real estate industry; there is "no money " for the CSIRO , TAFE , Universities or for retraining displaced workers .
A malevolent result of the Opportunity Cost of Investment .

..... continued

continued ....

Here are a couple of interesting observations , which background this design .

1.The only way to increase the price of real estate is by increasing demand .
Turnbull, Baird ( both bankers ) understand this principle .

2.The Federal Govts' , Minister Skinner's replacement was Felicity Wilson.
She is a former Property Council executive and employed by an infrastructure company as she ran for pre-selection .
I am not implying that these persons don't genuinely believe that despite the outcomes, that somehow the social design that they promote is in reality , good for the Country .

On the Labour and Liberal sides you have the additional pushes to get the ethnic vote .... huge money is made from directly or indirectly " sponsoring " and promoting high rates of immigration .

Both the main parties have very " close " connections with business model entities , which promote very high levels of population growth . These promoters appear to have a "strong influence " in the pre - selection process and provide the campaign funds for many candidates .

The last thing a property developer or bank wants is skilled locals ..... the lack of skilled locals is another lever to import more people . In this case , in the skilled migrant category .
If you have a lack of suitably qualified locals and starve TAFE's and Uni's of funds, then this is another lever to import more people ,as overseas students then contribute to the funding of these cash strapped institutions .

.... continued ...

.... continued .....
They also Invariably gain permanent residency and then apply for parent visas. After 10 years these parents , once they reach retirement age ( and never having paid a cent in tax ) are eligible for the old age pension ! So one student leads to two , unfunded old age pensions using Medicare and medications under the PBS . Fantastic outcome for our Social Security Budget , As this is again another way to increase numbers ,the booster businesses never question this financial disaster . With longevity increasing , it will be common for these Parent Visa immigrants to be on this unfunded Pension and free medical streams for over 30 yrs .

Forget the promised market testing in the "old " and now the " new" 457 Visa Category . We are bringing in truckloads of 457's , even though we have close to ONE MILLION, 15 to 25 yr olds unemployed !! The population growth business "love " these "temporary " 457 workers.
This is because they invariably lead to permanent residency and are another way of boosting numbers .

Not a " blink " regarding displaced workers and falling wages due to 457's , from Labour or Greens & the Churches . The last two groups have an effective open borders policy " as you can't say no to any poor person ... ".

What ? There are 1 billion poor people in the World , living on less than a average US $ 1 per day ! The answer to the World's poor is contained in the last 3 paragraphs .
..... continued .....

.... continued ....
We will have 1.2 MILLION EXTRA PEOPLE (UNITS OF DEBT) in Australia , IN THE NEXT 3 to 4 years !

This guarantees the acceleration of our economic demise , the rocketing up of taxes , levies , tolls , the price of housing and the essentials of life . Forget saving habitats and the preservation of our best farmland or holding onto the ownership of our finest dairy and cattle farms .

It is just a treasonous and hypocritical design which is supported by Bill Shorten , through inaction or active encouragements. We are now experiencing wages and conditions falling, as the labour market is whiteanted by a huge oversupply of people .

With a stable population , you can have stable economic output and have full employment . The opposite is not possible .

With a growing population , you MUST have economic growth to provide the extra jobs otherwise you have unemployment . That means you will grow the economy at all costs and you don't care how destructive this will be . How many times have you heard the outcry against some shocking development , only to be countered with the desperate plea that it will provide more jobs ??

Stabilisation is easily achieved by:
Balanced Migration and Balanced Fertility.

Currently for balanced migration...... as 70,000 people leave each year , then we can bring in 70,000."
As our birthrate is DOUBLE our deathrate .... Govt benefits after 2 children must taper off to send a powerful message that 2 children is the most appropriate family size financially and environmentally .
The taper-off of Govt benefits should be significant but relatively small for the 3rd child and a steep decline with the 4th and any subsequent child .

Finally , all our foreign aid should be spent on promoting and delivering family planning .

Promoting the benefits of stabilisation and carefully educating the Religions of the World to be environmentally literate, will design out inequality and poverty throughout the World .

It will also restore our balance with Nature . Best , Ralph

the only refreshing part about this 'widening the gap mantra' is that now the lefites can use that instead of gw to excuse Islamic 'lone wolf' terrorist from killing people.I mean the medical trained doctors at US expense that flew into the twin towers were highly disadvantaged and Saudi Arabia was severely affected by gw frying the brains of the attackers. Nothing to do with Islam!

Ralph,
"With a stable population , you can have stable economic output and have full employment . The opposite is not possible "
No, technological advances mean that economic output will never be stable - there will always be sporadic disruption.

Stable output is neither achievable nor desirable.

But we can have full employment and plenty of economic growth whatever the population WITHOUT wrecking the environment. All we need to do is stimulate the economy when needed instead of obsessing over surpluses.

"Finally , all our foreign aid should be spent on promoting and delivering family planning"
So you think we should spend nothing on disaster relief, nothing on preventing terrorism, nothing on medical programs such as preventing blindness, and nothing on assisting economic development in our future export markets? Just so we can spend the money on something that's already fairly well funded?

The world has already reached Peak Child. The population is growing because we're living longer, not because we're breeding too much. And in the few areas where people are breeding too much, the reasons usually have nothing to do with family planning services not being adequately funded.

_____________________________________________________________________________________

runner,
Are you mentally incapable of ceasing to post strawmen?

Nobody on the left wants or tries to excuse Islamic 'lone wolf' terrorists. But it is worth investigating all the causes. Even though the terrorists blame Islam alone, the reality is far more complicated.

no strawman Aiden, for decades the lefist socialist have used what they consider inequality as an excuse for violence, vandalism and abuse. Feeding their warped narrative of victimhood helps no one.

Damn for a second there I thought I had found an Alan B post that didnt mention Thorium.

runner,
" for decades the lefist socialist have used what they consider inequality as an excuse for violence, vandalism and abuse"?
And who exactly are these "lefist socialist"?
Are they the same imaginary people that "think that those who sit home and smoke weed all day, watch porn and refuse to pick fruit should earn the same as those who get up and go to work at 6 each morning"?

I'm not feeding anyone's "warped narrative of victimhood". I'm highlighting a genuine social problem: the younger generations do not have the opportunities that the older generations assume they do.

As usual the economists do not take into account the changing cost to
the economy of energy. They all think it is cheap now but it is more
than double what it was at the turn of the century.
However the producers of energy are not happy at all with the prices
they can get for their product.

This is felt right through the economy. We are making it worse by
bringing 200,000 plus a year into our economy.
This figure is higher on a per capita basis that the last year or twos
immigration into Europe and look at what that has done to Germany and Sweden.

We will be met with higher energy costs on a continuing basis and
like Rome our declining return on effort is decreasing our standards of living.

leoj,
I'm starting to think that it's a deliberate tactic of the left to field individuals who might be attacked on purpose, and to create controversial headlines.

I think they do it to get attacked, for the purposes of turning the argument around and then being an opportunity to attack everyone else as being racist, sexist, homophobic etc.
Hegelian Dialectic, Problem, Reaction, Solution.

Take Magied and Triggs - Are they over the top and do they blame everyone else when criticised?

Whenever someone screams racist you have to ask yourself if that's exactly what they were placed there to do.
It means they can more or less do whatever they want without being criticised and to turn the blame onto others to push a progressive agenda.

Most economists do not even mention energy as part of the economic
scheme of things.
Therefore they ignore totally such foreign concepts as net energy.

http://tinyurl.com/yazhmuka

It never occurs to them that there might be a bigger change going on
under their nose than they even realise.