Hedgehog nobody is talking about huge wage reductions, or massive tax cuts. What must be advocated is the striking of an equilibrium because at this stage one doesn't exist. Instead we have industrial relations agenda dominated by union thuggery, and a tax system that is difficult to negotiate, but easy to rort. By the way the people rorting it most effectively are usually the richest so your assertions that it is that demographic driving this push for reform is not accurate.
As usual the Howard haters are seizing on all the popular catch words, and clouding the debate with semantics/nonsenses. For instance I'm still waiting on your answer to how Australia being the highest tax and welfare state in the world will provide ANY benefits to ANYBODY in the long run!? Instead of dismissing this obvious problem sarcastically as a 'clever argument', why not come up with some answers?
As for your James Hardy argument it is laughable. If the unions were so concerned about asbestosis why did it take them decades to enter the fray? Answer: because they had nothing to gain politically from doing so.

Wre,The Unions have campaigned against asbetosis for over 30 years. Nowhere have i ever suggested that our tax system is perfect, many of Turnbulls proposals have merit and are certainly worthy of debate. The Federal Gov. is through the IR reforms proposing massive wage cuts. You may wish to kid yourself, but dont try to kid me. As to your baseless comments regarding Union "thuggery" i suggest u take a cold shower. I conclude by repeating -- the biggest whingers in our society are the wealthy, to much is never enough for them, the trickle down affect is a myth.

Hedgehog,

Can you point to any evidence that shows that beating your children will result in them becoming taller adults?

Or is it only me that has to answer fanciful questions unrelated to what was actually said.

Regards,
Terje

most of those arguing that free market forces in the labour market even if it leads to low wages are living in cloud cuckoo land and practice voodoo economics.

1. low wage jobs lead to less capital investment
2. less capital investment leads to lower productivity
3. lower productivity over time means business goes bust

Under Howard's huge push for deregulation of labour market there has been slowdown in productivity increases

Continual growth is dependant on increasing productivity.

There are two ways to increase productivity either lower costs or increase output for the same cost

The Howard and Des Moore way is to create an army of low paid and low skilled workers. Productivity gains under this system is marginal and cannot compete with other nations that embark on the alternative strategy of capital investment which leads to significant jumps in productivity.

The down side of the capital investment strategy is continual economic dislocation for groups of workers, to compensate society needs to ensure it has a process of allowing equitable access to new skills development and support during these transitional periods.

The focus on the enterprise as the driver of economic development has led to underinvestment in skills development for the nation and we are now bracing for capacity constraints that wll undermine our nation's future.

But hey why do you need to plan for an industry or nation, the market will fix it won't it.

All you practioners of voodoo economics can go back to sticking pins in your Greg Combet dolls, I wish that is all you would do because the economic garbage you are spouting has the potential to unravel 20 years of economic reform to modernise the nation.

Slasher

Nicknames such as Slasher and Redneck say a lot. Freud would have had a field day - says all. Do you really think that very ordinary, everday people such as me, are lacking neurones?

Cheers
Kaay

kalweb,
i enjoyed you masterful and insightful contribution to labour market analysis. I am sure that you used all your neurones in your contribution. The problem with people who read textbooks without understanding them is they then try and over analyse normal everday events. Sometimes someone might want to eat a banana because they simply like them, they do not need to have a phallic fixation.
Likewise someone's nickname may be steeped in a historic setting for a national sport or past time something that Freudian analysis will overlook. Then again often people who read textbooks have an intellectual arrogance without understanding.