The persistent failure of economic theory

I see the RBA today froze at the thought of raising rates in the midst of an economy as stone cold dead as this one. They are, of course, clueless about why this is, just as Treasury is equally clueless. So let me take you to my article just published at Quadrant on The Dangerous Persistence of Keynesian Economics. Here’s how it starts.

OUTSIDE the United States, no economy has fully recovered from the downturn that followed the Global Financial Crisis in 2008-09. The crisis came and went in half a year, but just about every economy continues to have problems generating growth, increasing employment and raising real incomes. As I was writing my article on “The Dangerous Return to Keynesian Economics” in 2009, I commenced working on an economic textbook, now in its third edition, to explain why modern macroeconomic theory is utterly useless, why no one using these economic models as a guide to policy would ever succeed. And here we are, ten years later, and everything discussed in that earlier article, explained in far more detail in my text, has come to pass.

________________

Just as the causes of this downturn cannot be charted through a Keynesian demand deficiency model, neither can the solution. The world’s economies are not suffering from a lack of demand and the right policy response is not a demand stimulus. Increased public sector spending will only add to the market confusions that already exist.
What is potentially catastrophic would be to try to spend our way to recovery. The recession that will follow will be deep, prolonged and potentially take years to overcome.
—Steven Kates, Quadrant, March 2009

.

Why have the IMF, the OECD, the ILO, the treasuries of every advanced economy, the Treasury in Australia, the business economists around the world, why have they got it so wrong and yet you in your ivory tower at RMIT have got it so right?
—Question to Steven Kates from Senator Doug Cameron, Senate Economic References Committee, September 21, 2009

________________

Why did I get it so right? Because nearly everyone else thinks economies are made to grow through increases in demand, while in reality, as was once universally understood, economies can only be made to grow through improvements in supply-side conditions. Demand has absolutely nothing to do with making an economy grow. Demand of course is crucial to how many units of any particular good or service will sell, but has nothing whatsoever to do with how fast an economy in total will grow, or how many workers will be employed.

Does being right count for anything? Not a bit. Still, you can go back to my original article from ten years ago, The Dangerous Return to Keynesian Economics, and see how well what I said then stacks up with how things now are.

Let me add that if you are not already a subscriber to Quadrant, you should be. Subscribe here.

This entry was posted in Economics and economy. Bookmark the permalink.

51 Responses to The persistent failure of economic theory

  1. Empire 5:5

    We currently live in the age of celebrity, messenger over message.

    Keynes must be destroyed before Keynesian economics will die. There’s plenty of material for those who care to dig.

    The Bloomsbury Set.

  2. jock

    The letter from commisar doug cameron is gold. Especially since he includes the ILO. Ive seen pond scum with more economic nous than the ILO. Doug is of course below pond scum.

  3. Empire 5:5

    Gravatar related:

    In the summer of 1908, the Bloomsbury artist Duncan Grant wrote anguished letters to his sometime lover and lifelong friend, the economist John Maynard Keynes. In the infancy of their romance, the pair had been forced to spend time apart while Grant holidayed with family friends, a period of separation which served only to deepen their emotional closeness. Absence, after all, makes the heart grow fonder.

    http://theconversation.com/painting-in-circles-and-loving-in-triangles-the-bloomsbury-groups-queer-ways-of-seeing-75438

  4. Empire 5:5

    Keynes was a communist and a sodomite.

  5. stackja

    If Keynes was the solution?
    Why is there still a problem?

  6. Linden

    Labor Party genius, dear Doug. The only clever thing about him, is that silly accent he carries on with.

  7. mem

    There are no bodgets in the world but I have just created one.It’s a beauty. I show my friends and they like it, so I go back and take a look at the possible market for my bodget, put together a business and marketing plan, get a loan and set up the first ever bodget company. Within two years I have expanded to three overseas sites and employing over a thousand staff. Customers like my bodget and think it is good quality and what they want. But they never wanted it before I produced it!

  8. J.H.

    But we’ll need to get rid of the Ecofascist regulations and subsidies before anything will ever work again.

    Private enterprise has been regulated out of existence because the Ecofascists are “Saving the World”…. Which means that they will fight until the death now before they will let us be free of them, because us winning means the “End of the World” to them, quite literally. We turn the taps off to the Taxpool….. they cease to exist.

    … If only Tony Abbott had become a beacon for skepticism before they accumulated so much power. If only he had herded the cats that were the Liberal Coalition into an anti “Climate Change” position with clear public announcements and policy rejecting AGW….. It would be a different Australia today. But alas he weakened his stance, Turnbull pulled his wings and the Liberals stand today, utterly eviscerated.

    I just wish Scott Morrison would just reject the ecofascism and the Keynesian protection of the Taxpool with its advocacy of the bureaucratic class and return to liberalism and free enterprise…. But I don’t think he has the energy, the vision nor the intelligence.

    The modern politician seems to think more Government is the solution… When it is actually the problem.

    Keep at ’em Kates, for I despair.

  9. Roger

    Why have the IMF, the OECD, the ILO, the treasuries of every advanced economy, the Treasury in Australia, the business economists around the world, why have they got it so wrong and yet you in your ivory tower at RMIT have got it so right?

    Mind mah Keynes!

  10. Chris M

    The only upside to Keynes? The dirty buggers theory has crippled the Chinese economy. Mind you the rest of the world will be circling the same debt sink hole before long.

  11. MPH

    Ironically enough, the RBA having set the OCR below what a floating market would arrive at for so long, have now flipped to setting it above the market rate. They are pushing on a piece of string when it comes to the Australian economy, availablity of debt is no longer the active constraint.

  12. Lutz

    There is also the effect of the population having less disposable income due to the high costs of services, insurances, electricity, various state taxes and fees for everything under the sun. If you reduce government spending (haha) and taxes then the economy would soon take off. With all the rubbish about superannuation, the banks fiasco and now labor plans for all sorts of tax increases and shafting society in general confidence is probably at a low and people will stick money under the bed or pay off debts rather than spend. Adding to that the uncertainty of resource development (or destruction thereof) as with Adani or gas exploitation, it’s not surprising the economy is in the dumps.
    Lastly, as government employment is at an all-time high, these costs are enormous and all these people are removed from the workforce to a place where they can’t actually add to the GDP or create anything useful.

  13. Lutz

    Actually the proof lies with the Trump: Set the economy free, allow gas and oil to be produced and reduce taxes, then get rid of the CO2 rubbish and EPA interference and the result we see now.

  14. Steven Kates:
    The fact of Keynesian economic theory is due to the intellectual arrogance of those who apply his teachings.
    A Free Market Economy will adjust itself most efficiently when the idiots leave the levers alone. It is only their vanity that makes them believe they can control the buying and selling, investing and savings of millions of people.
    And when these idiots stuff things up – which is the usual outcome – all they can think of is to pull and push the levers more.
    Australia is now suffering from the effects of a long running misallocation of labour and capital that shows no sign of ever being corrected.
    Hubris by a room full of intellectuals, each of which is convinced they are the smartest person in the room.
    WASF.

  15. Entropy

    Lastly, as government employment is at an all-time high, these costs are enormous and all these people are removed from the workforce to a place where they can’t actually add to the GDP or create anything useful.

    Actually, the feature of an ever larger government expenditure bill is that it increases GDP. That tactic, after all, is the only reason we are not classed as in recession.
    The politicians point to growth in the GDP figure as proof of their skill, all the while propping it up by growth in G.
    That shops are empty, that CDB office towers have empty floors, that any remaining manufacturing is going out of business, is just your lying eyes. Government businesses, including grant farming enterprises, have never had it so good.

  16. PB

    Proving “British-Disease” Cameron the Union hack wrong is a bit like shooting fish in a barrel.

  17. mrwashout

    Steve I bought a copy of your book a few years back and thoroughly enjoyed it. It gave me clear lines of argument to use against the mob when they tell me how awesome the NBN is, or how 27 years without a recession is a great thing etc. great book, keep on fighting the good fight

  18. Louis Hissink

    It’s the belief in utopia that’s the problem, whether physical or metaphysical.

  19. Tel

    Annual increase in debt (both private and public) should be subtracted from GDP. Then you get a sensible calculation of what the economy is doing.

    For the past decade, the Australian government has been borrowing and spending, mostly the spending is going towards consumption IMHO with a little bit going into genuine infrastructure. The NBN rollout and other school halls programs have been highly inefficient … but yes a little bit of infrastructure has been produced.

    Any boofhead can run up a debt on the credit cards and enjoy a pleasant consumer lifestyle … right up until in all becomes due. This is not genuine growth, it’s borrow, spend and pretend.

  20. John Stankevicius

    Lutz – spot on. What no one talks about is the private sector wage rate decline. This is now driven through the professions , For eg people have their teeth re shaped in SE Asia for one third of the price in Oz. This has gone through medicine, engineering, archecture, law, accounting etc. The result is it is not worth doing these jobs any more. The min wage is increasing and the entitlements to employees is increasing eg domestic violence leave. Fast forward 10 years and these people are sceaming to get out even though the wags are higher than what they want to do. They are trapped economically. I have clients in the building game who can’t stand it because of all the “shit” they have to go through. They waste one hr on safety and what they are going to do. Things have gotten so bad that Occ Health and Safety has become counter productive as all common sense and though on the job has been removed. The result more injuries. Unproductive businesses are being set on how to speak to employees and what employees should eat.

  21. John A

    Why have the IMF, the OECD, the ILO, the treasuries of every advanced economy, the Treasury in Australia, the business economists around the world, why have they got it so wrong and yet you in your ivory tower at RMIT have got it so right?

    —Question to Steven Kates from Senator Doug Cameron, Senate Economic References Committee, September 21, 2009

    Wee Doogie, the answer is staring ye in the face. Would ye care t’ open your eyes, noo?

  22. struth

    Some very good common sense comments to this post.

    John Stankevicius and Lutz are spot on as well.

    John, I gave up on playing the game a long time ago, and I am nowhere near retirement age.
    Many blokes I know have done the same thing.
    The work place for anyone from small business , blue colour to large business and white colour is insane.

    It’s simply socialism.
    Socialism, controls the means of production.
    In Australia, government controls business.
    And ruins it.

    From Maduro’s Venezuela to Hitler’s Germany, to the Soviets etc, it’s all socialism.

    Controlling the business, the market and anything else they can, and ruining everything they do.

    Personally, I should be at the peak of my money making life to set me up for retirement.
    I was at the peak of my game and had a small business in transport.
    Just imagining what OH&S is doing to the country would be hard for many to fathom, as they may not visit many other businesses and may stay in their own area.

    It is an unprecedented disaster, and it is Australia wide and infests near every business, and all businesses that actually produce anything.
    Imagine being an owner operator in transport and your specialised transport business means visiting different businesses and work sites around Australia.

    You end up spending half your week doing idiotic inductions, some lengthy, many requiring bookings and classes (I did a full weekend just to get into Roxby, and they told be me my lace up safety boots, steel cap were no good because they weren’t blue dog and gave me a pair……we never left the classroom) accommodating myself overnight up there.
    I went in twice in six Months to drop off machinery, each time the process was different and the last time I was told it was too long since my last visit so I’ll have to do the induction again.
    Then there is the insanity once you get on site.
    I took a wide load switch room from Adelaide to Hay Point. It was such a large load, dealing with NSW was out of the question, so we went up to three ways and across, ten days.
    It took me seven days to get it unloaded once on site.
    Seven days before I had the platform broken up to drive away.

    Work sites are insane.
    There is a point to all this.
    We’ve all got millions of experiences like this.
    I was being hounded by police and scalies as if I were a criminal, just for money as the compliances with oversize, offer them a never ending revenue fund, and then they went and added a new bureaucracy for permits that didn’t know what it was doing and brought the nation’s oversize load transporters to a stand still.
    Literally.
    With millions of dollars of equipment sitting at borders, men going broke, some taking their own lives.
    I’ll try to stop now, but I could go on.
    With taxation, and many other ruinous activity or lack thereof from government, and here’s the point.

    It wasn’t worth doing it anymore.
    The wealth I created with my own hard work, and absence from my family most of the year, was being confiscated by government.
    It is truly insane out there.
    I gave it away, and at fifty two, I play guitar in pubs on the weekend, earning SFA , but not much less than what I ended up with after government had been in my pockets before.

    Effort in Australia is for idiots.

  23. thefrollickingmole

    Keynes genius lay in telling politicians they could be squandermonkies without consequence.

    Much like Marxs genius lay in telling people they were justified in killing and robbing in the name of proletarian “justice”.

    Any theory that allows what is otherwise shithouse behavior (certain religions groups etc) has a built in market.

  24. Petros

    What did Keynes recommend as the proportion of public servants of the total work force? Twenty percent or something like that? Maybe politicians with balls need to remind the Dougie Camerons of the world about that. Of course it means admitting that Keynes was right about something but it would be hard for them to argue against this, no?

  25. mem
    #2951357, posted on March 5, 2019 at 7:40 pm

    True – under Steve Jobs Apple didn’t do market research because according to Jobs Apple’s customers don’t know what they want till Apple invents it for them.

  26. MatrixTransform

    Effort in Australia is for idiots.

    Being a small business idiot myself, I will back up what struth says too.
    margins so slim and bigger and bigger risks.
    middle-men brokering ‘permission’ everywhere.

    Lately, cottoned onto a job right up our alley.
    Large commercial and residential tower in Melb
    Gave a fair price for fair work.
    Wrote reports, put much effort, went the extra mile.

    Smelled a rat when extra parties at the table all with demands and expectations.
    We pretty much backed quietly into the shadows and watched the shit start flying.
    Later found that my agreed budget was multiplied 5x and put to the financial committee … and I finally pieced it together.
    Massive collusion with 2, and possibly 3 collaborators

    If you have been in a poker game for a while, and you still don’t know who the patsy is …
    you’re the patsy.

  27. iamok

    Where to start?

    I have worked in and around education for many years and am now back there trying to do a fix it job. I am dumbfounded at the over-unionisation, the me me me attitude, the lack of any ability to think critically for more than a nanosecond if at all. It is insane. OHS, compliance and dealing with bureaufatcats who are generally paid at least 30% more for the same job with half of the expectations. Privte sector wages have tanked for years, but not in our wonderful public service (see the oxymoron there?).

    In Melbournestan most jobs created are with State or Local Govt and they are closed shops. Plus they do not want anyone with half a brain. They want functionaries who tick boxes and do not pose questions.

    Meanwhile the walking dead population is being gouged of everything they own while they hook into MAFS or some other shit on the box, and when any of us speak out we get metaphorically beaten up by the dimwit, screeching SJWs, or literally beaten up by non-existent African gangs. And the seething masses vote the crooks back into govt in the main because the conservatives are utterly useless and bereft of principles or leadership.

    So the economy is tanking? Let’s throw more money at it cos that always works, this time from SMSFs and retiree funds. Death taxes are on the way I am sure, just in case you top yourself to escape all of this madness. But the grubs will always find a way to come after you.

    I have rekindled my music playing so maybe I will follow the lead above and start whoring out my chops instead of despairing at the total mess that is the Oz workplace. It’s gotta be easier than this.

  28. MatrixTransform

    this time from SMSFs and retiree funds.

    I’m wagering that all Excess Tax Credits will be non-refundable. Which also means dividends from private companies

    Re: supply side.
    eventually the ticks will kill the host.
    and without another host, the ticks will have effectively killed the ticks

    instead of looking at say immigration policy, as way of trying create demand, I think of it as a method of creating new hosts

  29. struth

    I have rekindled my music playing so maybe I will follow the lead above and start whoring out my chops instead of despairing at the total mess that is the Oz workplace. It’s gotta be easier than this.

    One of the main reasons I got back into music was that it is relatively untouched by government.
    No one makes you put on Hi Viz to play, and remuneration is performance, or merit based.
    There are problems with music caused by government.
    Decibels for surrounding homes, smokers have to go outside, their mates go with them, the fun police breath testing everywhere, and the expensive nature of drinks in pubs and clubs due to government taxation and compliance costs, so it’s still there, but not like other industries I’ve worked in.

  30. struth

    I now spend my days doing up my old Queenslander, rehearsing, and commenting on catallaxy in the breaks.
    Mrs Struth is happy to have me home and doesn’t want me going away anymore.
    I go up to Arnhem land and do a bit in the season, but there’s a whole different sort of communism up there, but you got to have humans to have communism, and where I go there’s bugger all of those, so mostly it’s fine.

  31. Ellen of Tasmania

    Martin Armstrong’s take:

  32. MatrixTransform

    Thanks Ellen that was awesome.

    i did once pass a post-grad elective on global economics but other than that I dont have any formal knowledge in Economics at all.

    Dunno if he’s wrongish or rightish but Armstrong’s pov was pretty validating for me.

    I dont have the proper jargon to be allowed at the conversational table but I’ve pretty much come to the same conclusions in my head.

    Armstrong joins a few dots for me.

    About 3yrs ago I woke up one day with a feeling of dread about debt in all is its manifestations.

    My reaction has been to relentlessly cull any and all forms from my business and personal.
    Convincing my business partner to give up cash took nearly a year.

    The only debt I have now is a home mortgage and I’m not exactly comfortable about that either.

    My guess is we are not growing because even dummies like me are sewing deeper pockets.
    Offset by the other dummies ‘investing’ in growth hope

  33. MatrixTransform

    risk as well.
    I’m culling all risk where possible.

    Last man standing I say

  34. struth

    The only debt I have now is a home mortgage and I’m not exactly comfortable about that either.

    My guess is we are not growing because even dummies like me are sewing deeper pockets.
    Offset by the other dummies ‘investing’ in growth hope

    I only owe a little bit more on my house, but I have redraw and am way ahead, and owe no one else a thing.
    Got the usual stuff plus a Kenworth prime mover I keep for sentimental value, it seems.
    Good car, old ute etc, trailers boat etc.

    Not investing any more in Australia.
    Will not buy another house or land here.
    Do not play the game.

    People said to me do this, and do that, all the while they didn’t have a clue politically as to what is going on in this country.
    They didn’t care.
    Went in over their heads to keep up with the jones, house prices will always rise, they said.
    many of them are in a world of pain.
    Suck eggs.
    When half the country thinks they can live off the energy of the other half, a country is done in.
    Once those paying for them work out what’s going on and stop, the country is completely gone.
    I’m the latter.

  35. Boambee John

    Going John Galt getting a worthwhile run on this thread.

  36. Confused Old Misfit

    Going John Galt getting a worthwhile run on this thread.

    Don’t know whether it’s going Galt or just people coming out with the realization that they must take charge and responsibility for the direction of their futures.
    The government they thought might be there to assist them now appears to be a government that, where it does not actively impede, seeks to control.
    That’s the government who quietly convinced you that you were getting a return on your tax dollar now letting you know the real price.

  37. MatrixTransform

    Going John Galt

    Like the tome Moby Dick.
    Where I had about 5 false starts over an equal number of years before finally chucking a 3 day sickie because I couldnt put it down.
    Atlas keeps shrugging from the todo book pile and I shrug back
    Better get around to doing it completely someday.

  38. Matrix:
    about a year ago here, I tried to make the point the huge amount of interest being charged on government debt was one of the larger costs put onto our economy.
    It had to do with opportunity cost and government refusal to rein in spending.
    Now I’m no economics whiz, but Armstrong seems to be making the point that I unsuccessfully had a go at.
    Yes – the lenders get a big pool of money to lend out, but is this more efficient than leaving it in the hands of the people who earn it?
    Am I reading it right?

  39. MatrixTransform

    somebodies owns the other side of debt right?
    To them it looks like a stream of income.

    a massive skimming operation.
    a casino
    say you have 300k to pay on the mortgage, and 300k in Super and 15 years working life left?
    your only choice is keep working and keep paying.
    and the skimmers get to keep skimming.

    I wish I’d bought assets instead of whiskey

  40. Matrix;

    I wish I’d bought assets instead of whiskey

    No you don’t, you silly girl.

  41. Keith Forwheels

    Given where the country once know as Australia is heading, whomever defects first defects best. And the best way to win is not to play, on whatever terms you can best manage that position. The losing hand is stay on rat wheel of small business, especially if you’re a decent, honest human who values your ethics and sanity. We’re past the point of no return, it can’t be fixed until it collapses, and maybe not even then.

  42. MatrixTransform

    We’re past the point of no return, it can’t be fixed until it collapses, and maybe not even then.

    and that’s why I whiskey

    can’t I have assets and whiskey?

    Shoulda chosen wealthier parents.

  43. Keith Forwheels

    Matrix,

    Re your earlier point – the skimming machine is the nexus between the all encompassing welfare state, fiat currency & government deficit spending.

    Whether or not you have any personal debts you are always in debt thanks to the government, and your purchasing power, standard of living, time, is being stolen from you, no matter what you do.

    The inflation is not in the increase in the prices of non tradeables per se or the statistics which track same, it’s in the visible (& hidden) growth of fungible currency units and who has first use of the funds, at what marginal cost.

    Ordinary people cannot win, the rules of the game make it impossible, also incentivise all the worst possible behaviours in personal dealings.

    There is always a small percentage of people at either end of the dumbbell who will never compromise on their inate good, or inate bad, it’s the direction of the broad middle that determines the fate of communities and societies.

    Now, witness the current state of the country formerly known as Australia – draw your own conclusions as to where the broad middle is heading, and prepare accordingly. Personally I like to take my dogs for long walks, but I can certainly understand if you prefer a stiff drink.

  44. Tator

    Struth,
    might have worked with you as spent 6 years at SAPOL’s Escort group moving overdimensional loads around the state. You are correct in that transport is being sucked dry by compliance enforcement. My brother in law is in the transport game and basically gave up half his business because of the bullshit compliance and enforcement involved with stock transport. Now is happy as a pig in mud running around the family farm as a gopher at 60 years old.
    I am in a similar boat to you, having left the workforce prematurely due to regulations and crap legislation.
    Retired on invalidity nearly 3 years ago and now happily retired without the bullshit SAPOL forces down a coppers throat. Had been thinking about a return to the workforce last year but a massive heart attack which left me clinically dead and the subsequent miracle created by SA’s finest paramedics and MedStar doctors has basically said no to going back to work at least for the foreseeable future. Have an old school defined benefit pension that I am able to live comfortably on and 2 properties, both with me being the majority owner and the credit union a minority owner at this stage.
    I would have to agree with you about the system being captured by the left. Everything I look at is made more expensive because of government regulation. Makes it difficult to get on with life.

  45. MatrixTransform

    you people are breath of fresh air.

    a breeze on a hot day.

    most of the time I feel like I’m screaming at Hell’s Hurricane

  46. MatrixTransform

    it’s in the visible (& hidden) growth of fungible currency units and who has first use of the funds, at what marginal cost

    yep, people like me … we’re the Farm

    Orwell was a prophet

  47. Empire 5:5

    Keith Forwheels
    #2951988, posted on March 6, 2019 at 6:37 pm

    A+, 4wheels.

  48. Lutz

    This is probably the saddest thread I have ever read here. I came from Germany in 1995 and thought this was the best place on earth. As an engineer I did have work over the years, but as it went on there was less engineering all the time and nothing but more and more paperwork and substantiation. 73 now and retired, but the Galt analysis is true enough. We’ll see where the money comes from when there are no mines, no manufacturing, no transport. Maybe retreat to Cambodia, at least I can’t follow the politics there.

  49. EvilElvis

    Plus they do not want anyone with half a brain. They want functionaries who tick boxes and do not pose questions.

    Yep, people who need a rule book (legislation) to live by (compliance) and are happy to be non productive and administer that bullshit to the rest of us. Unfortunately the positions are predominantly ‘professional’, career minded women in OHS, environmental and HR positions. Completely overpayed positions draining the country of any private means of productive enterprise and as a bonus, empowering these women to be ‘independent’, hence fucking a generation of positive population growth.

    I commiserate with the other small business people here, the government screws you in every way possible and enables employees and any corporations you deal with (banks) to get their hooks in as well. Complete fucking bullshit from clowns with no skin in the game.

    Struth and Tator, I hope I ran into you guys in NW WA at some point, you’d remember me, I’d have made your life easy on my sites. Mind you, I was in infrastructure and construction, well ahead of the mining numpties who have no timeline except to maintain the above mentioned compliance. Unfortunately I’ve got a fair few working years ahead of me, the writings on the wall.

  50. John Stankevicius

    Struth
    Your blog is brilliant. I can’t offer anything And your thoughts are what is happening out there. I have not seen a business owner who thinks it’s worth it. It’s all way paying out mainly to govt or govt initiated programmes . The min wage is going up yr upon yr, Canberra wages are going up by 4.5% per annum, recall Mr T Abbots comments about public service, their wages should move in line with the private sector. Then there is power i had a Clint’s power bill go from 36k to 86k in 2 successive year. Then there are the rates and taxes, the idiot courses . As a bean cruncher I had to do a fin planning course whic was a waste of breath , more licensing fees that cannot be passed on , thanks Kerry Dwyer and enjoy your consultancy fees to the industry and banks.
    People are leaving businesses in droves and I am seeing people who are good at what they do emigrate over seas – so whose left.
    What’s concerning is young people first choice of employer is the state government followed by the federal govt, the pay and conditions can never be matched by private industry. The redundancies are lotto amounts ,closest thing to a European soccer players wage for one month.
    Then there is the msm, Leigh sales “why give a tax cut when the small business owner will pocket it”.
    As a business told me last night “ it’s as if we make excuses up not to do anything and get paid”.

  51. MatrixTransform

    note to self …buy a dog.

    #2952233, posted on March 6, 2019 at 10:44 pm

    Small biz to small biz I’m getting mixed messages.
    Seems to depend on where in the market you are, or more likely where in the food chain.
    I hear of people doing what I’m doing .
    I hear of layoffs and contraction.
    I hear of pivoting to alternative less risky and less profitable.
    on the other hand
    there are some that are proud of their debt.
    a $M here and 3M there … its all good…gimme a quote

    I can hear the suck suck suck of the vacuum.

    It doesnt feel right

Leave a Reply

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

This site uses Akismet to reduce spam. Learn how your comment data is processed.