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We never never seem to learn : Comments
By Rollo Manning, published 9/7/2009Government edicts alone will never change behaviour in Aboriginal communities
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“If resolving Aboriginal disadvantage was put in the hands of the private sector with incentives for success it may be solved in a far more efficient manner than is possible through a bureaucratic process.”
That is true, but by definition, the government can’t put it in the hands of the private sector and provide the incentives (other than by abolishing all race-based laws and policies) because if it did, that would be the government, not the private sector that’s making the evaluations and taking the action.
The point is, the private sector places little to no value on people living and reproducing in poverty and idleness in remote communities that are nothing but an artefact of the welfare state.
But if Australia’s race-based policies were abolished, the biggest obstacle facing the people from these communities, in trying to make their way, is itself the welfare state. The intensive government regulation of the economy counts most against the most disadvantaged: those with least literacy, skills, or capital.
For example, the government by decreeing a minimum wage that is above the market rate for a particular person’s skills, in effect forces that person into unemployment.
The statutory on-costs for employers, eg, tax, super, workers comp, leave loading, unfair dismissal procedures, long service leave, mandatory insurance, mandatory registration etc. mean that employing people with low literacy and low skills is that much less economically viable. The effect is to discriminate against the employment prospects of low-skilled people.
But if someone who can’t get a job wants to contract independently, he must somehow administer the ABN, the GST, the income tax, the tax deductions, the car log, the super, the worker’s comp, obtain compulsory licensing and insurance… and so on.
All these effectively illegalise the options for the most disadvantaged.
We never seem to learn that the solution is a lot less intervention, not a little bit more.