‘Progressive’ Policies Have Regressed Us Back to the 1950s

Alan Moran’s graph from yesterday (sourced via Michael Crawford) deserves another look:

real-electricity-prices-

This graph perfectly illustrates what happens when governments diddle around in energy markets and increase subsidies to wind and solar energy in the name of ‘climate action’. In just the last decade alone, energy prices have almost doubled in real terms.

Just stop and think about that.

But that’s not all. Those with a particularly keen eye will also have noticed that:

  • abolition of the carbon tax saw an almost immediate decrease in electricity prices;
  • the period of Tony Abbott’s Prime Ministership coincided with the only time electricity prices have appreciably fallen since the mid-late 1990s; and
  • the period of Malcolm Turnbull’s Prime Ministership has coincided with electricity prices going straight back up again.

It’s amazing how so many people are quick to get their pitchforks out over the price of petrol (which has barely increased over the same period), but will blithely accept a doubling of electricity prices – seemingly as if it’s the price we have to pay to ‘do something about climate change’.

Fuel.png

Fuel2.png

When it comes to Australia’s disproportionate sensitivity to petrol prices, this statement made last year by the Australian Competition and Consumer Commission says it all:

The average price for petrol in the five largest cities (i.e. Sydney, Melbourne, Brisbane, Adelaide and Perth) in 2015–16 was 121.7 cents per litre (cpl). This was the lowest annual average since 2001–02 in real terms (adjusted for inflation). Gross retail margins, the difference between retail prices and published wholesale prices, in the five largest cities increased by 1.2 cpl on the previous quarter, and averaged 11.2 cpl in 2015–16, the highest level since the ACCC began monitoring them in 2002.

“We remain concerned about the petroleum industry’s high gross retail margins, which indicate motorists are not reaping the full benefits of lower international crude oil and refined petrol prices,” ACCC Chairman Rod Sims said.

The scariest part is that things are only just getting started. ‘Renewable’ energy currently accounts for about 17% of Australia’s annual energy generation – and Finkel, Turnbull and Shorten all want to increase this to 42% within the next 13 years.

(H/T Alan Moran)

This entry was posted in Global warming and climate change policy and tagged , , , , . Bookmark the permalink.

21 Responses to ‘Progressive’ Policies Have Regressed Us Back to the 1950s

  1. Bill Griffiths

    Now might be a good time to stock up on candles, kerosene lamps or portable gas lamps, batteries for your torches and gas bottles for your barbecues. There will be blackouts in NSW, SA and Victoria this summer, thanks to the madness of governments state and federal. I wonder whether there’s the possibility of a class action against governments who neglect the heating, cooling and cooking needs of their citizens.

  2. stackja

    Yes 1940s blackouts! Then Menzies. Then Kev 07.

  3. H B Bear

    All this carried out against falling real incomes. Will the boiling frogs keep voting for more?

  4. max

    May I briefly outline some of the aspects of fascism in Australia?

    1.
    Manufacturing industry has formed an alliance with the political and bureaucratic apparatus to impose taxes on Australian consumers through a vast and complex web of import duties, import controls, embargoes and inhibitions to trade in goods that if overseen by the most authoritarian Customs police in any civilised nation, equipped as these police are with untrammelled power of entry, search and seizure.
    2.
    Governments, federal and State, have seized control of the whole of the transportation system, with the exception of a depressed and exploited trucking under-class.
    Until very recently, when it began to collapse entirely under the weight of its own internal contradictions, the airline industry was a government-managed monopoly, split into two parts.
    State governments have run the railroad systems of Australia on the basis of a corrupt alliance with unions, to the enormous detriment of the Australian consumers. The waterfront and coastal shipping are run by union gangs who enforce their laws with terror and in many cases through the use of murder against potential interlopers, a group that sometimes includes the State police.
    3.
    The Federal Government controls the whole television industry, and enforced anti-competitive rules and licences by means of terror through the State Chamber apparatus of the Australian Broadcasting Tribunal. The same goes for the radio industry. Officials decide the allocation of licences. Officials hold a weapon of fear over what is broadcast.
    Australia was one of the last nations on Earth to receive the manifest benefits of FM radio transmission, due to enforcement of the spurious argument by the (then) postmaster-general’s department that there was “no room” for new FM channels.
    This FM freedom argument meant that Australia suffered for decades from sub-standard AM radio transmissions and the preservation of the privileged FM radio regional monopolies, the result of age-old deals done between the PMG and big business (that’s what fascism is all about, folks).
    4.
    Pervasive corruption exists in agriculture, where trade in grains, fruits and sugar — to name a few examples — is controlled by State marketing authorities who are free to make their own deals with waterfront and transportation gangs, including such gangs as the waterside “workers”, the seamen and the painters and dockers. In much of agriculture, imports of competitive food products are banned.
    In the case of sugar, the monopoly profits from the State-sponsored system of corporate monopoly profits (enforced by embargoes on the import of sugar) provided the financing of a big industrial complex, the Colonial Sugar Refinery Company, whose wealth came from the monopoly profits of a prolonged ripoff of the Australian sugar consumer.
    5.
    There is little or no competition in telecommunications in Australia. This industry, which is exploding worldwide and providing the very foundation of much of the future wealth of America, is not free in Australia to compete vigorously for capital but is trammelled by political control from the apparatchiks in Canberra.
    As a result, pervasive low-level corruption characterises the attempts by ordinary Australian consumers to obtain a connection to telephone, fax and data networks. “Who do you know?” becomes as much a part of getting access to the telecommunications networks in Australia as it is in any communist, or any other fascist or corporate State around the world.
    6.
    Above all, as in any communist or in any other fascist or corporate State, Australians have been deprived of the right to work under terms and conditions that they may individually and freely negotiate.
    The right to work has been taken away from ordinary Australian workers. Their work is regulated by a mass of official controls, imposed by a vast bureaucracy in the ministry of labour and enforced by a corrupt and compliant “judiciary” in the official Soviet-style Arbitration Commission.

    I might also add that in Australia, as in other fascist and corporate States, the share of profits has bounded ahead.

    Like other failed communist or fascist corporate State systems, the Australian system has been able to avoid breakdown in recent years only by means of huge and unsustainable foreign borrowing. This foreign borrowing route was the one taken by communist Poland and fascist Mexico.

    http://economics.org.au/2010/12/advance-australia-fascist-max-newton/

  5. John L

    All this carried out against falling real incomes. Will the boiling frogs keep voting for more?

    Yes, they will! It’s called “democracy”. Democracy is a very expensive mistake. If you want democracy you have to pay for it.

  6. Rabz

    It’s amazing how so many people are quick to get their pitchforks out over the price of petrol, but will blithely accept a doubling of electricity prices – seemingly as if it’s the price we have to pay to ‘do something about climate change’

    I’ve never accepted this monumental treasonous idiocy and have considered (human induced) “climate change” to be an hysterical anti-scientific fact and evidence free crock o’ shit since I first had the misfortune to hear about, almost three decades ago.

  7. .

    Great link max. No apologies, no holds barred, no punches pulled and irrefutably correct.

    Australia may be a liberal democracy but in honest, absolute terms we are not free. Being free relative to North Korea is not a great achievement.

  8. Speedbox

    For years I have marveled at the blind ignorance of some consumers who bemoan the price of petrol yet merrily pay an equivalent price per litre (and frequently more) for a bottle of water. And don’t get me started on the price of a coffee……

    Yet, when you consider the “journey” from ground to pump for that refined litre of fuel, it is almost remarkable the price is as low as it is. Not to mention the Federal and State Government taxes that lift the retail price by 40+% over what the price could be (plus that hidden sting where we pay a tax on a tax because GST is calculated, in part, on the tax imposed at wholesale).

    This country is buggered. As innumerable Cats have pointed out – successive Governments don’t have an income problem, they have a spending problem.

    (no, I don’t work in the petroleum, or any allied, industry)

  9. .

    The tax on petrol is a bloody disgrace. The public generally blames “greedy companies”, this is sad, stupid nonsense.

  10. @SeditionaryI

    Dot, Max, we live in a country where you can be prosecuted for what you say on social media, a country that still censors its press, we have a government that keeps a blacklist of websites you’re not allowed to see, a government that reads your electronic messages and runs your phone calls through a filter. We are not free, far from it.

    And we still trust them enough to vote in pencil…

  11. RobK

    Thanks Marcus,
    The electricity market is of course only the start of it. I suspect it was seen as an orderly beginning to the disruption, given that the small number of players were well regulated and dependent on the grid. It is concerning that the madness has persisted so long.

  12. Leo G

    The real price increase in retail prices is worse than indicated by the charts.
    The Howard government changed the regulated composition of petrol toward more unsaturated hydrocarbon components, so that that petrol density (and with that energy density) was significantly reduced.

  13. RobK

    If a commensurate treatment was given to petrol/diesel as has been given to coal, things would be different. If they could they would.

  14. Maurice Miner

    Max, an excellent post!

    An absolute re-read and save.

  15. incoherent rambler

    abolition of the carbon tax saw an almost immediate decrease in electricity prices;

    As would the abolition of the various RETs.

  16. .

    @SeditionaryI
    #2470615, posted on August 16, 2017 at 1:46 pm
    Dot, Max, we live in a country where you can be prosecuted for what you say on social media, a country that still censors its press, we have a government that keeps a blacklist of websites you’re not allowed to see, a government that reads your electronic messages and runs your phone calls through a filter. We are not free, far from it.

    And we still trust them enough to vote in pencil…

    Thank god someone is awake to see through the jingoistic crap.

  17. Ƶĩppʯ (ȊꞪꞨV)

    mission accomplished, let’s work harder so we can all get back to the glory days of 1917!

  18. Leo G

    And we still trust them enough to vote in pencil…

    We are approaching the stage where voters want to stuff the candidates into ballot boxes.

  19. Neil

    We are approaching the stage where voters want to stuff the candidates into ballot boxes.

    It is the voters who are to blame. Howard had his problems but in 2007 unemployment was at 4.3% and falling. Govt debt reached zero in 2005 and -3.8% of GDP by 2007. We were earning $1B/year in income on the 3.8% of GDP we had in the bank in 2007. One of the few countries in human history to be debt free.

    But the voters wanted Rudd and looks like they want Labor back again to finish the destruction of Australia.

  20. Garry

    Yup, this article is correct – we do concentrate more on the price of petrol than we do on the price of other forms of energy. We fill the car up weekly and the price of petrol is a constant annoyance. Conversely the energy bills turn up once every three months and unlike the price of petrol we just tend to consider them an unavoidable cost of living and because we don’t see them fluctuate on a daily cycle as we do with petrol prices they just sort of slip under our radar. Yes we should be mortified. And yes we should apply political pressure to get energy prices on the agenda.

  21. Mr Black

    I don’t blithely accept the rise in electricity prices. I think it is one of the largest political frauds and scandals in our history. I would, and I mean this in all seriousness, vote to hang the people involved if such a choice was put to the nation. They have betrayed their duty to the nation. They are causing economy wide destruction to this country with no end in sight.

Leave a Reply

Your email address will not be published. Required fields are marked *