This is what you get when a politician has never had a real job

Dr Jim Chalmers, for a doctor he is, is the (ALP) Shadow Minister for Finance. According to his public biography, Dr Chalmers’ work experience is limited to being a public servant, an academic, a policy researcher, a lobbyist and a political staffer. And not just any political staffer, but Chief of Staff to the Universe’s greatest Treasurer, the Hon. Wayne Swan.

The closest experience Dr Chalmers has to business is advising Wayne Swan on how to increase business taxes.  But notwithstanding his extensive commercial and investment experience, Dr Chalmers is now proposing that the Australian tax payers:

fund business ventures that cannot gain access to private finance.

Breathtaking isn’t it.

Note to Dr Chalmers.  When a business, particularly a start up business cannot gain access to private finance, that is usually because investors (those people whose own money is on the line) don’t think the business is a goer.

Dr Chalmers it seems, wants to turn the Commonwealth Department of Finance into a venture capital enterprise:

I want to make the case for an engaged finance ministry with a renewed focus on co-investment and for an entrepreneurial state as a source of new inclusive growth

Government as an entrepreneur.  Yeah.  That will go well.  Howz that return on the NBN investment going?

Dr Chalmers does not propose to use his own personal money to “co-invest” nor does he propose to use the Australian Labor Party’s money.  Nope.   He wants to use tax payers’ money.  He thinks that he and the Department of Finance will be better at picking which businesses to invest in; better than those people investing their own money.

Perhaps rather than raising capital for his investment fund by taxing citizen (at the point of a gun), he should try first to raise voluntary money by pitching his and the Department Finance’s investment bona-fides to private investors.  Let’s see how much voluntary money he can raise.

Yep.  This is going to work a treat.  I wonder how many of those non tax paying union business enterprises will be knocking on the door.  Not to mention every other half baked idea misreading the market.

Maybe the Hon Swan can chair the investment committee.  He has a track record of successful investments.  Doesn’t he?

Apparently 42% of start ups (on average) fail because their is no market need.  This grand idea will surely reduce this number.   A “business” with no voluntary paying customers perpetually funded by government is not a business.  It is the public service.

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27 Responses to This is what you get when a politician has never had a real job

  1. Bruce of Newcastle

    Breathtaking isn’t it.

    APRA has been monstering the banks for at least a year because of perceived risk in their lending portfolios. So they’ve cut back on lending on the riskier end of the spectrum and have concentrated on the less risky sector.

    Which is the more risky bit you might ask? Business, of course.
    What is the most risky bit of business? New start ups, of course.
    What are the most risky new start ups? Why amazingly they’re the ones the big boys refuse finance to.

    So here they are moaning how banks are lending so riskily whilst also moaning that no one will lend money to the riskiest risks. Sheesh.

  2. The Deplorable Barking Toad

    The Commonwealth Development Bank used to do something like this.

    Some nice ole rorts back in the 80’s got funded.

  3. H B Bear

    A glimpse into the future under a Liars Peanut Head government. It ain’t going to be pretty.

  4. Empire

    I want to make the case for an engaged finance ministry with a renewed focus on co-investment and for an entrepreneurial state as a source of new inclusive growth

    He’s a moocher, not a moron.

    When Keating gifted the union movement compulsory super, the intent was to give the wukkas agents control of capital through the back door. That hasn’t quite turned out as expected.

    Chalmers brainfart is an obvious phase II where the state directly controls capital investment, which has the added benefit of crowding out private savings. It also conforms with Marxist thinking on the “transition period” for eliminating private property.

  5. manalive

    You can be sure Climate Change™ will be high on the good Dr Jim’s (PhD political science) list of venture capital priorities, as if enough of the nation’s wealth hasn’t been tossed down that bottomless pit to date.

  6. Uno

    The Victorian and Tasmanian Economic Development Corporations should be good models for the Canberra initiative.

  7. Apparently 42% of start ups (on average) fail because their is no market need.

    And then there’s the other percentage that fail because of poor business and financial management.

    If just 0.05% succeeded, the ALP would crow about the success of their initiative, carefully not mentioning the other 99.95% failure.

    Of course the Commonwealth has never engaged in funding activities that have failed (choke).

  8. wal1957

    Reminds me of Gullard’s “young and naive” excuse.
    The reason that most of the politicians are naïve is that they have no work experience outside of politics.

    Thus Australia is doomed as these idiots and their ‘brain farts’ of ideas, stuff whatever else they can interfere with.

  9. The reason that most of the politicians are naïve is that they have no work experience outside of politics.

    And sadly their advisors are no better.

    Hey! But doesn’t Malcolm have extensive business experience?

  10. Dr Faustus

    fund business ventures that cannot gain access to private finance.

    Mine-mouth USC coal-fired power station?

    Amortised cost of goods sold: $45/MWh;
    Levelised revenue: >$85/MWh.

    Boom.

  11. H B Bear

    Dr Chalmers might want to go and have a look at the National Rental Affordability Scheme and see what happens when government intervenes in the private capital markets. He could start here or go and have a chat with another Liars finance wizard, Blabersak.

    Of course, Dr Chalmers has a PhD, so I’m sure he wouldn’t repeat all these mistakes would he?

  12. entropy

    Sounds like a Katter Party policy. Chalmers can’t even manage an original idea.

    Toad, anyone borrowing from the old commonwealth development bank or the Queensland Regional Development Authority would have to pass a viability test and be able to demonstrate they could service the loan. Chalmers’ proposaland Katter’s would go much further than that and would explicitly create a lender of last resort.

  13. entropy

    Also implicit in this type of thought bubble is the government entity would never chase bad debt or foreclose.

  14. Ez

    Chalmers:

    “This is a more sophisticated ­approach to government — leveraging the commonwealth balance sheet to invest…

    “This is one way to foster job-creating growth that doesn’t require huge outlays and generates returns when we have extreme fiscal constraints,” he says.

    Will they be called Infrastructure Bonds or Innovation Bonds or something else?

    They’ll be snapped up by the big (union controlled) super funds, with the money returned for “job-creating growth”.

  15. John Bayley

    Howz that return on the NBN investment going?

    But…but…that’s only because of the Liberals’ fraudband! If only that nice Mr Conroy had been able to spend north of $100 billion on fibre to every crevice, the NBN would have been the envy of the world!

    /sarc (but only a little – this is exactly what most lefties seem to think!)

  16. They’ll be snapped up by the big (union controlled) super funds, with the money returned for “job-creating growth”.

    That’s an interesting point. Anything that Labor proposes, when it comes to such things, should be evaluated in the light of how could the unions and union affiliates benefit from such schemes.

    Or am I being cynical suggesting that Labor governments would favour unions when it comes to schemes associated with taxpayer money?

  17. Mother Lode

    Isn’t he perhaps just thinking that this is the Market Failure that has stymied the proliferation of bakeries catering solely to gay weddings.

    Bakers are notoriously Christian. In America it has proven time and again to be impossible to find a baker who will make a cake tastefully adorned and surmounted with a two little figurines of middle aged men dressed like teenagers.

    A government department would be able to supply a supply for the demand they have just supplied with the plebiscite.

    After spitballing names like ‘Tying the Rainbow’, ‘Wedding Gaykes’ or ‘Glittery Dates’, they will probably end up with something like “The National Gay Wedding Cake Bakery Company”.

  18. Squirrel

    After the memorable Department of Finance recruitment video, a chain of paleo cafes will be an obvious starting point for this outburst of taxpayer funded entrepreneurialism.

  19. 3d1k

    Isn’t this was the CEFC does already. And exactly what activists fighting Adani don’t want anyone to do! I’m going to promote it as an Adani loan.

  20. EvilElvis

    For Christ sake when will this shit stop. Gut the public service, now.

  21. John Comnenus

    Can anyone else remember the Tricontinental collapse scandal in Victoria? Tricontinental was a State owned investment bank that collapsed under the ALP Cain leadership and caused a Royal Commission?

    Obviously Dr Chalmers forgot. But has the ALP remembered?

  22. Robbo

    Chalmers is trying for the Idiot Of The Decade award and he could easily win. He appears to be someone with limited knowledge of what has gone on in the political scene in recent decades because if he had done any reasonable research on the subject of a government getting involved with providing funding to ventures that could not gain that funding from traditional lenders then he would have stumbled across something called the VEDC. That was a brainchild of the Cain Government in Victoria during the 1980s and idiot in charge was Rob Jolly, the hopelessly incompetent Treasurer of the State. I could list the VEDC disasters here but I will leave it to others to research. Suffice to say the VEDC was one of the major reasons why Victoria was nearly declared bankrupt and was widely known at the time as “The Rust Bucket State”. Now this nuff nuff Chalmers is intent on doing to Australia what Cain and Kirner did to Victoria. If Shorten has any brains he will put Chalmers in a padded cell until he can work out how to be rid of him.

  23. Dr Fred Lenin

    I wish people would stop using the word”the honourable” for these useless bludging crooked bastards There is absolutely nothing honourable about them ,doubt if they even know the real meaning of the word .

  24. Louis

    @John Comnenus
    “Obviously Dr Chalmers forgot. But has the ALP remembered?”

    No! No he didn’t. He’s banking on other people having forgot. Awarding inflated contracts to mates is getting harder and harder, so now they are looking to buying or bankrolling bullshit and calling it investment in innovation. Like somehow there’s a chance the country could benefit from this moral hazard redux.

    Labor – Taking and wasting other people’s money is what we do best.

  25. W Hogg

    If just 0.05% succeeded, the ALP would crow about the success of their initiative, carefully not mentioning the other 99.95% failure.

    Strangely, the SLF was floating over a FakeNews article in the Grauniad that said “only” 40% of participants in Malcolm’s traineeship programme got a full time jerb out of it. “Only.”

    He really is that stupid. So by all means. If you want to punish Malcolm, preference this grub.

  26. Jason C

    It’s not a Public Service, it’s a nuisance.

  27. Dan Dare

    Hawke’s petrol stations and department store were a huge success eh?

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