1) The government has dishonestly called its latest display of $42 billion worth of ignorance a “stimulus” package. Unfortunately, in reality they are (again) trying to throw petrol on a fire in their feeble attempt to put it out. Forced wealth re-distribution will not stimulate the economy and never has. Those who wish to blame “evil” capitalists should wake up and see the mixed economy reality. Governments long ago monopolized banking (ie: the federal reserve) and over the last few decades we have seen exponential growth in property rights violations through economic regulations. The world can only take so much unnatural violations of human freedom. We should learn from the US experience. Their government intervention eg/ the implicit guarantees of tax payers to rescue Fannie Mae and Freddie Mac, the Community Reinvestment Act, the guaranteeing of risky mortgages with taxpayer money through the Federal Housing Administration and of course the terrible US Federal Reserve policy which is still continuing to inflate the currency were the causes of this mess. To think more of the same will help is a tragic fantasy.
2) I whole heartedly thank the Liberal party for their opposition to this latest Australian record of government wealth re-distribution also known more dishonestly as a “bail out”. I may even vote for them if they continue to support capitalism, freedom and human life and prosperity.
If the Labour party really wants to help us economically, here’s the tried and proven recipe:
1)Cut the corporate tax rate. Ie: Stop enticing businesses to move overseas.
2)Cut the personal income tax rate. Ie: Stop punishing financial success.
3)Stop discouraging people from using their own creativity, skills, and effort to succeed in business through restrictive regulation.
4)Cut capital gains tax rate. It’s unjust double taxation that distorts the market.
5)Eliminate all tariffs and protectionism. Any barriers to trade hurt Australians.
6)Massively cut government spending on welfare and health programs, eliminate corporate welfare, and eliminate the regulations that make doing business a mess of inane red tape.
Freedom – not more government spending – is the recipe for a speedy economic recovery.