This morning The Australian had a wonderful story about government and price increases.
Here’s a startling contrast: the cost of goods and services with prices set by the private sector has increased by just 5 per cent during the past five years.
But where prices are set or substantially influenced by the government, costs have escalated by 27 per cent, more than five times that pace.
In the private sector, competition has never been more intense under the onslaught of cheap Asian-manufactured goods, the entry of new global retailers and the ever-greater ability of technology to put goods and services from around the world at a consumer’s fingertips.
Nice graph too (via the IPA).
But we here at the Cat were onto that nearly ten years ago. Here is a short piece I wrote for the IPA Review in 2008.