A re-affirmation of small government, ideally including constitutional limits on its size and regulatory authority within the economy, is necessary if stagnation is not to become the way of the world. Or we could ape Japan’s example and learn to live with little or no growth, not now or ever
Even with the federal election still at its phony war stage we can discern the assaults on our liberties and pockets that the next few months will foreshadow. Labor (still more the Greens) has set its spoon to plumbing the depths of the magic pudding as it tries to consolidate and build upon the excesses of the Rudd/Gillard/Rudd years.
To shore up its support base Shorten & Co., want to:
spend more on teachers and people with disabilities;
have a royal commission into banking to force banks to lend to those with sub-standard credit or to grant preferred terms to some borrowers;
leave the unions beyond the law, thus ensuring cost premiums which are 30% on construction costs;
triple the price of electricity by requiring a 50% renewable share,
plug the industrial attrition caused by energy and IR cost impositions by increasing protectionism and requiring local steel, even if sub-standard or excessively priced, to be used in naval shipbuilding and infrastructure;
promote LGBT agendas, including introducing “marriage equality”; and
introduce “more humane treatment” of refugees.
Conscious that government spending remains well above the “emergency” levels introduced in 2007 and that some of these plans will require tax increases in addition to the increased regulatory induced costs, the ALP is proposing to:
increase business taxes on multinationals
levy a special tax on those earning more than $180,000 a year
tax superannuation;
introduce higher taxes on capital gains;
abolish negative gearing on housing investments; and
increase tobacco taxes.
At least in the case of the first four of the above points, the measures would bring about lower savings and investment – the basic drivers of living standards – with detrimental economic outcomes.