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:
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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