The Australian way – cut taxes, raise productivity and reduce regulation

The front page story in this morning’s Australian is one more piece of evidence on the death of Keynes and the return to economic management of a kind not seen for almost a century. Its enemies have called it “austerity”, but what you are looking at is a return to a market-based approach to getting economies to work. As the headline says, Tony Abbott tells Davos: let business lead way. And this is what the Prime Minister means:

In meetings in Zurich with Switzerland’s top investors in Australia and an address to the Australian business delegation to the forum, Mr Abbott has launched a pitch for the “absolute centrality” of private business to sustainable economic growth.

Declaring that Australia will take its own actions to cut taxes, raise productivity and reduce regulation, the Prime Minister will call on other nations to make way for business and free trade. . . .

Addressing Australian business leaders, Mr Abbott said it was easy for commentators and governments to forget “the absolute centrality of successful private business to prosperity”.

“You cannot have a society, you cannot have a community and you can’t have an economy without successful private business,” Mr Abbott said.

It sounds so obvious you have to wonder why it isn’t said more often. And this is the new world we are in and I hardly think what the PM will say will fall on deaf ears. If the socialist President of France is quoting Say’s Law, you may be sure that there is a light dawning that will move us towards a kind of prosperity that has been suppressed for seventy years.

And as for the economic textbook writers of the world, if we suddenly find that the road to prosperity is made up of Y=C+I-G, there may have to be a global book burning as macroeconomic theory finds the need to start again.

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33 Responses to The Australian way – cut taxes, raise productivity and reduce regulation

  1. nerblnob

    Whatever. Actions speak louder than words.

  2. Andrew

    Cut taxes – except when it comes to company tax, the medicare levy and income tax.
    Cut spending – except when it comes to education, health and other welfare spending programs.

  3. .

    He has until around the end of May this year to impress me. Past that, he may be condemned as a socialist and supporter of anti-prosperity.

  4. Token

    If the socialist President of France is quoting Say’s Law…

    I suspect that the worst French president since WW2 was stunned as you are that his speech writer through in that statement and does not understand them.

  5. Mayan

    Reductions aren’t reductions. A reduction in the rate of growth is not a reduction.

    Did we not see the news yesterday about the creative use of the Constitution proposed by the current government to override private contracts with welfare? I’m sceptical about the desire, much less the capacity, of the current government to get out of the way of business and get out of our lives.

  6. ChrisPer

    Good words. Lets get it happening.

    And lets not forget an important new revenue possibility – professional liability claims against Global Warming doom-mongers that gave bad economic advice.

  7. egg_

    “You cannot have a society…

    “There is no such thing as society” – Margaret Thatcher.

    Down to one car maker, hooey.

  8. ChrisPer

    And I know where $1.1B of savings plus a whole chunk of interesting real estate could be eliminated straight up.

  9. Token

    I’m sceptical about the desire, much less the capacity, of the current government to get out of the way of business and get out of our lives.

    I’m sceptical that the ministers will be able to get the public service to agree to change their patronising view on society and business. What Abbott is proposing runs contrary to the way government departments have operated (and used to bloat) over the past 15 years.

  10. Econocrat

    I like how people such as Hewson say Abbott does not in like economics and is not interested in it. So far he’s proposed about the best set of economic policies for Australia since Keating. He just needs to implement them.

  11. srr

    He has until around the end of May this year to…

    …to collect a mountain of sound arguments from all classes of loyal Australians, that justify and demand the break from the socialist ways, and strikes every Leftist powerlessly dumb.

  12. brc

    Does anyone really think,that by the end of the 2016 election, or event the 2019 election, that Thhr size and reach of the Austrlain government will be any smaller, in any way, than it is today?

    Most Liberals yearn for the glory days when Howard showered the GST money on voters with goodies like baby bonuses, first home buyer grants and super top ups. They aren’t remotely interested in decreasing e size or scope of the very government they are part of. None f them care about leaving a large budget and board scope for the socialists to then use to implement their goals. None of them care about guiding the thinking of voters toward self responsibility, lower taxes and independence of the state.

    It’s just words from Abbott. Nothing. It’s like unionists saying they are for the workers, when clearly they are not.

  13. Toiling Mass

    Calling it ‘austerity’ only makes sense if you look at it from the point of view of an entitled government – hence it is the cry of statists.

    On a human scale it is more like someone becoming less of a moocher – definitely an improvement.

  14. Rabz

    professional liability claims against Global Warming doom-mongers that gave bad economic advice

    Perfesser Dim Flummery, come on down!

  15. H B Bear

    Yeah, Yeah. File it next to Hockey’s “We need to end the entitlement mentality of welfare” speech.

    Let’s wait and see what these graduates of Howard’s Big Government Conservatism actually deliver. I won’t be holding my breath.

  16. The Pugilist

    I like how people such as Hewson say Abbott does not in like economics and is not interested in it. So far he’s proposed about the best set of economic policies for Australia since Keating. He just needs to implement them.

    That’s how I feel Econocrat. I just wish they’d get on with it. Or at least start trying…put up legislation and let the Senate knock it off. Who knows, he may even get some useable DD triggers…

  17. gabrianga

    Have just listened to Christine Milne (on SKY News) rubbishing Abbott and stating that he would shame Australia with his policies and drag the G20 into the gutter.

    This Tasmanian Quisling has opposed development in Australia since first elected in Tasmania in 1989 and her alliance with Germany’s Petra Kelly founded the international Red/Green Alliance.

    Forget the moneylenders .Let’s drive Christine Milne and her anti-Australian zealots from our Parliament
    .

    SKY actually interrupted the Australian Navy’s explanation of the “tortured” refugees to bring us Milne.

  18. egg_

    SKY actually interrupted the Australian Navy’s explanation of the “tortured” refugees to bring us Milne.

    For the ‘fairies at the bottom of the garden’ party’s alternate point-of-view?
    ‘Renewables is our future’?
    More Tassie hydro, anyone?

  19. Fibro

    Tony, stop talking and start doing or Billy Goat Shortarse will be correct and you will be a 1 Termer.

  20. Andrew

    Well, at least we know he’s on the right track if the Lemonsucker is appalled.

    How long before Senior Labor Figures start attacking Abbott666 for the pro-business message (like it’s a bad thing). We’ve already had Sussex St ubergrub Dastyari attacking the Commission of Audit as being a front for Abbott666′s “pro-business agenda.” After 6 years of TRYING to make the country poorer, and succeeding admirably in their second term, the R-G-R scumbags are actually PROUD of harming business and, inevitably, seeing unemployment soaring for 3 years.

    Is it too late to bring back horsewhipping for corrupt public officials?

  21. stackja

    The main drivers in the December quarter were a rise in the price of fruit and vegetables by 8.1. per cent, and domestic holiday travel and accommodation by 6.9 per cent.
    A rise in new housing purchases by owner occupiers, international holiday prices and tobacco costs also boosted inflation.
    Read more: http://www.smh.com.au/business/inflation-rise-dampens-hope-for-rate-cuts-20140122-3194d.html#ixzz2rBRxP8xo

    Tobacco costs? Government taxes are a source of inflation?

  22. stackja

    Andrew
    #1163919, posted on January 23, 2014 at 1:02 pm

    Corrupt public officials once faced a firing squad.

  23. srr


    Andrew Forrest strikes cheap coal deal to end Pakistan slavery

    Dennis Shanahan in Davos
    The Australian
    January 23, 2014 6:59AM

    PM focuses on progress in Davos

    AUSTRALIAN mining billionaire and philanthropist, Andrew Forrest, has struck an informal deal with Pakistan to do away with more than two million slaves in return for a chance to convert billions of tonnes of cheap coal into much needed energy.

    Using Australian technology developed at Western Australia’s Curtin University, Mr Forrest has signed an agreement with the Pakistani State of Punjab to test the feasibility of turning currently uneconomic lignite coal directly into diesel for use in the energy-starved region.

    RTWT

    Is ‘evil coal’ still ‘evil’ if a rich white western man uses it to end slavery for brown people in poor lands?

  24. Andrew

    Is ‘evil coal’ still ‘evil’ if a rich white western man uses it to end slavery for brown people in poor lands?

    Yes, if the white guy has ever made a public criticism (no matter how mild) of GreenLP tax, carbon, welfare or environmental regulation policy.

  25. Andrew

    Unfortunately as soon as the 2 million are freed they’ll get straight on a boat for Xmas Is.

  26. Mk50 of Brisbane, Henchman to the VRWC

    Is ‘evil coal’ still ‘evil’ if a rich white western man uses it to end slavery for brown people in poor lands?

    Looked over comments on various sites infected with greenfilth.

    The answer they have is yes (all caps, bold, red, 47 exclamation marks), becuase:

    he’s white
    coal is evil
    he is white
    he’s rich
    he’s white
    he’s interfering with their customs
    he’s white
    he’s a thrusting phallocrat
    he’s white
    he’s Australian
    he’s white

    and because SHUTUP.

    They also say they are enlightened, progressive and not racist.

    personally, I think ‘unhinged lefty racists’ explains their entire worldview, but that’s just me…

  27. .

    Andrew Forrest ought to be nominated for the Nobel Peace Prize.

  28. Toiling Mass

    Is ‘evil coal’ still ‘evil’ if a rich white western man uses it to end slavery for brown people in poor lands?

    Short answer: Yes.

    The evil of whites and of men far outweighs the humanity of brown people – even moreso in the case of brown people who have compromised their humanity by in any way embracing anything white.

    Thousands of dead brown people bobbing face down in the sea doesn’t rate when keeping the Greens (via Labor) in power. Brown people ground into the dirt by totalitarian leaders is a small price to pay if it secures another vote against white men. Brown people starving diseased camps is acceptable since it preserves their culture simply because it shows white men that their own culture is no better than brown culture.

    Brown people are just a way of hitting at vile white men. They have no value other.

  29. Elephant Stone

    Walk the talk Tone. Walk the talk.

  30. Andrew of Randwick

    Following our Prime Minister’s travails, I am reminded of three quotes from Churchill. Two that our Prime Minister could have used in his Davos speech:
    .

    “Some Socialists see private enterprise as a tiger – a predatory target to be shot. Others see it as an old cow to be milked. But we Conservatives see it as the sturdy horse that pulls along our economy.”

    “The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries”

    .
    And one for his parliamentary colleagues back home and the voters:
    .

    “The practice of Parliament must be judged by quality, not quantity. You cannot judge the passing of laws by Parliament as you would judge the output of an efficient Chicago bacon factory.”

    Does anyone else remember the past crowing “This Labor government is working, look at the 300 pieces of legislation we have passed”?

  31. Andrew

    Does anyone else remember the past crowing “This Labor government is working, look at the 300 pieces of legislation we have passed”?

    Remember it? They’re STILL fucking going on about it. I even had a bloke I formerly regarded as sensible (he was a blatant OTT workplace misogynist – I had no idea that he was a closet Green-believing warmist as well) tell me why the Gillard clownocracy will be regarded by history as the most underrated govt ever. And his reason was that she was regarded as SOOOOOOO bad, that history will judge her as only QUITE bad – based on passing N units of legislation!

  32. Johno

    Andrew Forrest ought to be nominated for the Nobel Peace Prize.

    Only if this initiative falls over and doesn’t change anything.

    If it achieves nothing, then he will be a shoo-in. :-)

  33. JohnA

    ChrisPer #1163586, posted on January 23, 2014 at 9:05 am

    And I know where $1.1B of savings plus a whole chunk of interesting real estate could be eliminated straight up.

    I heard a good argument for privatisation today, from a TV industry insider.

    1. Put the ABC up for sale, and give the luvvies the first option to buy (including the ABC Staff Super Fund and Friends of the ABC).

    2. If its output (which doesn’t have to change, although it doesn’t agree with me) is as good as they claim, they will doubtless enjoy it, albeit now interspersed with ads for beer, cars and McDonalds, as well as the current ads for ABC Classic DVDs and the rest of the program schedule.

    3. If the luvvies don’t bid enough, then the new owner can take it wherever he damn-well pleases.

    4. If the government shuts it down, then the luvvies and lefties (BIRM) will cane Abbott666 mercilessly for “attacking free speech” – and the government will lose, because they will be (hypocritically) attacked for their hypocrisy.

    5. The entire exercise will recognise that the original 1920s paradigm no longer applies. It can actually be a model for other privatisations in mixed government-private sectors (health, education, welfare?)…merely a continuation of the Labour-induced process from the early 90s (Commonwealth Employment Service, transport, telecomms [yes, I know they didn't work out so well, but the theory was OK]).

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