In today’s AFR, Aaron Patrick reports that the Turnbull ‘innovation agenda’ was a political failure, government concedes.
A political failure. Really? What about an economic failure? How about a policy failure? Perhaps a sprinkle of governance failure with a cherry on top?
When government policy is about increasing the cost of business inputs, you don’t get innovation. You get business closing and business off shoring.
- increasing cost of labour – let’s ratchet up with anti-productivity regulation and belligerent unions.
- increasing cost of capital – let’s ratchet up with cost of capital with some additional bank taxes, financial sector “cost recovery” (ie taxes) and regulation. Oh and rather high income and company taxes to boot.
- increasing cost of energy – does this really need to be spelled out?
- increasing cost of land.
Have any of these people actually dealt with a regulator or the tax office or local government?
Within his article though are some additional corkers:
The government’s independent adviser, Innovation and Science Australia, plans to complete an innovation plan in three weeks for Senator Sinodinos that will argue for more direct funding over tax breaks directed to high-potential projects, or areas of research, that can lead to profitable businesses.
The general feeling among speakers at the summit was that Australia isn’t fulfilling its potential for turning good ideas into successful businesses, and that a more entrepreneurial culture supported by government is needed.
More tax breaks paid for by current businesses and a more entrepreneurial culture supported by government! Are you kidding me. The only entrepreneurship coming out of government is designing new ways to spend money inefficiently and new ways to tax citizens.
What music should be played for the Australian Rent Seekers Conga Dance?
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