The Chump Economy

This is a wonderful article from City Journal.  It is about the Chump Effect:

People feel like chumps when they believe that they’ve played a game by the rules, only to discover that the game is rigged. Not only are they losing, they realize, but their good sportsmanship is being exploited. The players flouting the rules are the ones who get the trophy.

This is the Australian economy.  It is bi-partisan policy and has been for quite a while.  This this is what it leads to:

And when government expands its role in distributing society’s resources, you can’t blame influential groups—farmers, unions, businesses—for lobbying in their own interests. But over time, the number of people and businesses dependent on subsidies and other targeted benefits will grow. So will their political influence. Meantime, the pool of people forced to get by without special carve-outs will shrink, even as its members pay the tab for everyone else.

This article was written about the US, but how does this sound:

In the end, Chump Effect policies encourage Americans to see themselves, not as self-reliant individuals and families, but as members of competing groups, all jockeying for advantage. This is a recipe for political conflict and resentment.

Welcome to Australia.  The chump economy.

Remind TAFKAS please.  Before CoronaSpendParty 2020, what was the proportion of the population who paid no net tax?  And generally, what is the proportion of the population that is required to achieve a democratic majority so as to to exert its will over the rest?

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8 Responses to The Chump Economy

  1. Lee

    People feel like chumps when they believe that they’ve played a game by the rules, only to discover that the game is rigged.

    Sounds like the 2020 U.S. election.

  2. thefrollickingmole

    Its a very good article, well worth a read.

  3. Dot

    It’s also how Australian administrative & criminal law work.

    …and hence why I have moral imperative to obey the law, only a self preservation motive and my love for my fellow man.

  4. Tintarella di Luna

    Thanks for this very interesting article so applicable to what used to be Australia

  5. Entropy

    The classic is disaster assistance. Around 2008 or so these recovery grants of up to $25000 were introduced for exceptional natural disasters. You just had to show your repairs invoice and you got the grant. Subsequently audited. It was made permanent after a similar grant made after STC Larry in 2006.
    Anyway, at first many farmers did not take it up when it was activated after for example, the Brisbane floods or STC Yasi. “Those people down the road need it more than us” you would hear.
    After the scheme had closed, these people would hear stories of people will rather trivial impacts, or “joe got his crappy old pump replaced with a brand new one for nothing, the government paid for it!”
    Next time, they thought about it a bit and after humming and hawing, decide “ we are a bit silly, we should put it in”. And so they did.
    The next time after that, they are demanding the grant is activated as soon as it starts raining/ hailing/ sun shines etc.
    Now Scotty from marketing has raised the ante by making these grants up to $75,000,when the median gross annual wage is about $55k.

    What could go wrong?

    Learned dependence sounds more technical than the chump effect.

  6. Squirrel

    For the benefit of those who missed it, on Peta Credlin’s show tonight, Matt Canavan described the “modelling” (not publicly available, of course) which purportedly supports the NSW government’s massive renewables plan as the “black box in a plane crash which has yet to happen” – a superb takedown of the sort of bulldust which so often justifies chump economics.

  7. Louis Litt

    Australia has regressed into a 2 class society between those that have – government employees and those that have not – private industry, escpecially small business.
    Govt employees wages are higher than private industry wages, their super is 15% as opposed to 9.5%.
    Their employee entitlements cannot be matched al lol sick leave and the multitude of other entitlements.
    The retirement age and pension entitlements start when reach 55 years of age with pensions to 70k per annum. Over say 25 years that’s 1 75 million. Most businesses owners work into their 70s to earn this amount.
    They are the only people who say at 55 yrs of age “ that’s enough,i have worked hard all of my life” – I do not hear that. Very. Often from business owners except. Now when they are being ripped off with low interest rates because they saved all of their lives.
    The next group are the charities and not for profits. Being an amendicat is now a noble thing. Just look at O Bama, Macron, Trudeau, Merkel.

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