A COVID-19 economic recovery program

While the green left will use the crisis to march us to lower living standards and greater losses of liberty, the Commonwealth Government is making the right noises about reducing the tax and regulatory measures that have held us back.  But do they know where to start?

The tax reforms are easy: pare back company taxes and other imposts on production.

I offered some advice in regulatory refom in an article published in the Spectator.  These regulatory sins comprise areas where real economic dividends can be made, collectively greater than the losses by the Commonwealth’s generosity with our savings and future incomes.  These are

  • Strip Back the Fair Work Commission’s functions to become similar to those in other jurisdictions: oversighting issues of unfair dismissal and human rights abuses etc.
  • Align land regulations for new housing development with those in Germany and US States like Texas, the Carolinas and Ohio, thereby reducing the cost of a new home by $200,000.
  • Curtail the creation of new national parks and address other land use measures that prevent farming, mining and logging in vast tracts of Australia, including areas of great gold mining potential in Victoria; an additional bonus of this is better wildfire control.
  • Abandon the greenhouse gas emissions policies including those subsidising renewables thereby penalising coal and gas thereby bringing trebling electricity prices; also cease the reclassification of private land to prevent its development in pursuit of emission reductions.
  • Allow the exploration drilling for gas, including through the provenly safe fracking technology which is embargoed in Victoria, NSW, South Australia and Tasmania
  • Restore the 20 per cent of irrigation water taken from farmers in the Murray Darling Basin for spurious, and often counterproductive, environmental flows.
  • Sharply reduce the massive sums spent on falsely propagating the Great Barrier Reef as endangered from global warming, farm run-off and any other fantasies that can be used to attract taxpayer support.
  • Review with a view to revoking many of the environmental laws and regulations that have accumulated over the past 50 years. Most of these address spurious concerns. Thus, the Environment Protection and Biodiversity Conservation Act 1999 (EPBC) presently under review is largely duplicative of state laws and ventures into areas of pure green politics like nuclear and coal seam gas.

It will be a test of the Morrison Government’s

  • understanding of the damage created by these and other regulations,
  • its ability to control the bureaucracies that ideologically support and benefit from them and
  • its own political willingness to act with the sort of resolution not seen since the Hawke Government.

Does anyone think we have such well informed and resolute politicians in the leadership positions?

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39 Responses to A COVID-19 economic recovery program

  1. Spurgeon Monkfish III

    Does anyone think we have such well informed and resolute politicians in the leadership positions?

    No. They are evil useless power crazed hitlerist dunderheads.

  2. Nob

    And what Human Rights Abuses will a funded commission or tribunal address that aren’t already illegal?

  3. John Comnenus

    Alan, you are talking to the SLOMO led Liberals, an entity wholly owned by the Public Service. The Public Service led and advised response will be more government, higher taxes and more regulation. My guess is that SLOMO will:

    1. Increase various bio hazard agencies and put bio checking in at international airports = more public servants and spending
    2. Increase taxes to pay for the costs of the anti COVID measures (I know this won’t work but it is what public servants will recommend), the second tranche of income tax cuts will also be delayed indefinitely
    3. Impose more regulations to stop people from taking any action adverse to any group (except entrepreneurs), eg can’t fire any staff, can’t increase (or decrease) pre COVID prices etc.

    I am sure there will be more from the ever inventive measures from a public service who see more government, higher taxes and more regulations as the answer to every crisis.

  4. nfw

    Does anyone think we have such well informed and resolute politicians in the leadership positions?

    I fall about laughing that anybody would think we do.

  5. I’d add

    Abolish the regulatory burdens on nuclear power, native forestry, marijuana and water storage.

    Allow people to draw down as much superannuation as they please with no restrictions.

    Abolish payroll taxes

  6. I see nuke and native forestry were already covered, a solid package Alan.

    Now is an opportune time to abolish payroll taxes.

  7. Iampeter

    It will be a test of the Morrison Government’s

    No conservative government has ever shrunk government, cut taxes or deregulated in any measurable way.
    In fact, the biggest expansions of the welfare and regulatory state in Australia have all occurred under conservatives.
    Not to mention that the Morrison government ran and won the election by promising more freebies than Labor.

    So, it’ll be a test indeed.

  8. Fraser was bigger than Gough?

    I am not shocked, just surprised.

  9. bollux

    Morrison is just another spineless big girls blouse who will do what it takes to preserve his political career. He is the leader of the best Labor party we have had in recent memory, outshining even that of the great Kevin Rudd.

  10. Isn’t it funny how Alan Moran has the exact same solution to every single problem in society.

  11. Since we are facing declining worker productivity and hence an eventual decline in living standards, being contrary to current policy is a good thing.

  12. RobK

    Well done.
    Earlier:
    RobK
    #3424747, posted on April 23, 2020 at 6:38 am
    https://www.themandarin.com.au/131393-australias-covid-19-exit-strategy-must-prepare-for-future-outbreaks-report-says/

    The report published by the Actuaries Institute argues the Australian government “went hard and late” in its response to the coronavirus outbreak, but avoided disaster with its subsequent social-isolation measures.
    The exit strategy
    The report argues governments should assume they will need to come out of lockdown long before a vaccine is available. In the case of Australia, governments must try to isolate “riskier lives” (and the people living with them), while allowing the “safer lives” to return to the economy.

    The report proposes that Australia must:

    Recognise there are no risk-free options, with a carefully balanced approach between expanding economic activity and preventing the virus spreading exponentially. The report argues “one-dimensional strategies” which target COVID-19 without also considering the economic implications “will kill more people from poverty and mental health issues than they save from the virus”.

    RTWT well written and detailed.

  13. Pyrmonter

    @ Iamp

    The Menzies government:
    – abolished consumer product rationing
    – established an independent central bank (taking away that responsibility from the commercial operations of CBA)
    – abolished internal capital market controls
    – converted the trade restrictions from quotas (in which the Country Party had done a nice little trade) into tariffs.

    There – a conservative government has implemented economic reform.

    You would be right to note it has been a while.

  14. Rob MW

    Isn’t it funny how Alan Moran has the exact same solution to every single problem in society.

    Isn’t it even funnier that Monster doesn’t like being gagged, scragged and de-bagged in one post.

  15. Narwhal Tusk

    Monty disagrees with Moran.
    The wrongologist therefore proves Moran is correct.

  16. BOB MW
    I won’t have it! Monty performs an invaluable service because you know, straight away, anything he proposes is the opposite of what needs to be done.

  17. Mark M

    A renewable led recovery is guaranteed if the current UN failed doomsday global warming lapdogs remain in charge:

    https://www.un.org/press/en/2020/sgsm20051.doc.htm

    Secretary general says covid19 ‘wake up call’ demands recovery built on green recovery marking earthday 2020

  18. Hay Stockard

    Monty reckons Alan,Moran is as predictable as he is. No surprise there

  19. Infidel Tiger King

    None of that shit helps small business.

    It’s all corporatist wank.

  20. Mother Lode

    Isn’t it funny how Alan Moran has the exact same solution to every single problem in society.

    As opposed to the progressive solution always being ‘more government’.

    And it is a little disingenuous to suggest opposite of one thing to also be one thing. Less government means a proliferation of possibilities.

    A free people do not all do the same thing, i.e. The free thing.

    Some open businesses, some become plumbers, some street mimes (the real test of a society is tolerating mimes) some travel around Australia, some to Europe, some to Asia, some save for a bigger house, some get married, some stay single, some eat French, some flop belly-first into a vat of donuts, and so on.

    You do know that health bureaucrats would ban donuts ‘for your own good’, as well as countless other things.

  21. mem

    I would add that we need to unburden small businesses with regard to :
    weekend wage ,shift and penalty rates. Small restaurants and cafes in particular will recover more quickly if they can employ staff as needed.

  22. Watch Your Back

    Remove corporation tax
    Remove payroll taxes
    Suspend or remove the GST
    Remove penalty rates
    Make overtime tax free.

  23. bruce

    Yep. Should happen , but won’t.
    We need a genuinely bold, fearless leader supported aggressively by a bold party.
    We’ve got neither.
    Example : The PM chairing the united “national cabinet” (where’s the coalition cabinet) declares all schools to reopen for term 2. The states give him the finger. Fearless PM meekly accepts.
    Does anyone honestly believe any reforms will be achieved.

  24. John A

    m0nty #3424891, posted on April 23, 2020, at 9:00 am

    Isn’t it funny how Alan Moran has the exact same solution to every single problem in society.

    Because all the problems stem from the same source: the stupid idea that government = God. Last formulated by Marx and Engels and carried forward by every adherent of the socialist/communist totalitarian philosophy since.

  25. Craig Sargent

    Morrison is a political coward

  26. Iampeter

    @Pyrmonter – you’re right, it would be more accurate to preface what I posted with “it’s being a long time since…”

    Also, the Morrison government certainly didn’t run and win an election on a deregulatory platform or something, so I wouldn’t be holding my breath.

  27. Rob MW

    I won’t have it! Monty performs an invaluable service because you know, straight away, anything he proposes is the opposite of what needs to be done.

    Excellent post Alan.

    I’ve mellowed (with age) my fire in the belly now realizing on principal that what politically should happen is never going to happen due to a political lack of a backbone. I’m a consistent reader of this excellent site, not always agreeing, however it’s not a good look when commenters take a personal shot at the excellent contributors, yourself, Sinc, Steve, CL, TAFKAS, JtG and the many Guest posters.

    By all means disagree with what has been posted, but do not be rude or question the integrity of the poster. Like I said Alan, I’ve mellowed – somewhat !!

  28. Colonel Bunty Golightly

    No they won’t do any of those. Much easier to just tax self funded retirees!

  29. Cynic of Ayr

    Seems to be a mad rush into spending superannuation monies.
    This is stupid.
    Firstly, everyone gets old, and retires, or they die from something beforehand. It’d be nice to know beforehand which category you fall into, but you do not.
    So, by spending superannuation money now, your’re placing yourself in the latter group. Such foresight must be a wonderful gift. However, if you are wrong, and unfortunately (so you say) you arrive at old age, and with no money.
    Look around! Those on Old Age Pensions alone, are battling. Add to that, we are warned that there will soon be no Old Age Pensions.
    Secondly, I’d venture that, almost to the last one, the advocates for spending super now, are themselves, not in that boat. They are either well off, have Government jobs, University jobs, and providing for your own aged well being is taken care of by a group other than yourself.

  30. Behind Enemy Lines

    Does anyone think we have such well informed and resolute politicians in the leadership positions?

    On the whole, federal politicians are pretty bright and very resolute. The problem is one of incentives. Unless coalition voters stop rewarding the coalition for aping the green left as part of Australia’s national uniparty, we won’t see the essential change of direction. The next election will be somewhat of a referendum on that, and will define how this country travels for quite some time. By then it’s just barely possible that ordinary Australians will have worked out that they’ve essentially become serfs in what used to be their own country, and fight back at the polls . . . but I’m not counting on it.

  31. mem

    Look around! Those on Old Age Pensions alone, are battling. Add to that, we are warned that there will soon be no Old Age Pensions.
    Secondly, I’d venture that, almost to the last one, the advocates for spending super now, are themselves, not in that boat. They are either well off, have Government jobs, University jobs, and providing for your own aged well being is taken care of by a group other than yourself.

    On the other hand you could do what I did. Pay as little as possible into super and put aside the money that would have gone into super and use it to pay off housing debts or build up capital yourself in various forms. The result, three times better off than if had gone the full super hog. Some would say that people can’t be trusted to save or look after their own finances let alone use the funds to build up a business. I disagree. I don’t believe it should be compulsory that’s for sure.

  32. John Bayley

    No they won’t do any of those. Much easier to just tax self funded retirees! everyone who still has a job and regulate them more to boot.

    FIFY.

  33. John Bayley

    @ Cynic of Air; #3425161 12:21 pm:

    What you say is true, but there is actually a simple solution, that would fit well with Alan’s proposals above.

    Namely:

    1) Abolish the Age Pension and introduce a ‘bare bones’ social security benefit as an absolute minimum for the irresponsible

    2) Abolish compulsory superannuation

    3) Reduce income tax and GST to 10% flat & abolish all other taxes.

    4) If you don’t manage to provide for yourself under that tax regime, refer to 1) above.

    5) Of course, none of this will be allowed to happen.

  34. Boambee John

    m0nty
    #3424891, posted on April 23, 2020 at 9:00 am
    Isn’t it funny how Alan Moran has the exact same solution to every single problem in society.

    So, the same as the green-left fascists have the same solution to every single problem in society then. But his “same solution” is more likely to work than the green-left fascist one.

  35. Watch Your Back

    3) Reduce income tax and GST to 10% flat & abolish all other taxes.

    Yes. I said earlier abolish GST. I was meaning as a tax on business buying services and inputs from each other, also for tradies. Just convert it to a retail sales tax if need be.

  36. Gavin R Putland

    Notable omission: Eliminating or reducing taxes that cause the cost of hiring a worker to exceed the benefit to the worker. Funny how these pro-production Daleks are so willing to tax the basic productive relationship of capitalism: the employer-employee relationship.

    (HT to “Legalise Sedition” at #3424867 re payroll tax.)

  37. Squirrel

    I’ll believe they’re serious if, amongst other things, they really get stuck into bureaucratic duplication (and triplication) between the Commonwealth, States/Territories and local government.

    Aside from regulating things which should be left alone, and over-regulating things which need some rules, but not micro-management from government, huge amounts of money would be wasted by second-guessing and turf wars between the Commonwealth and the States/Territories.

    There also needs to be a serious clean-up of local government – not just the over-regulation, but wasting money venturing into areas which are not their job (e.g. local councils do NOT need to have a position on Israel/Palestine).

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