Showing posts with label National Population Policy. Show all posts
Showing posts with label National Population Policy. Show all posts

Politics: The Unfolding Train Wreck.

What happens when rats are backed into a corner?

They turn on and attack each other. This is what we have witnessed in Australian politics since 2010 and it is the nation, which is suffering, due to this political instability.

Here are a few examples, chosen because each; as Douglas Adams would say demonstrate, ‘the inter-connectedness of all things’.

Climate Change:  
This should have been so simple, remaining a technical and scientific issue – not a political or religious one. Politicians routinely prove themselves to be completely incapable of addressing it, or in some cases understanding even the basic: causes, mechanisms or long-term consequences. Result, the biggest obstacle, to addressing both climate change AND energy prices to consumers is politics (and politicians).

Consequently carbon pollution has been given no value. All they had to do was give carbon a value and then address any further market failures, which arose – as they arose. This is basic Keep It Simple Stupid (KISS) principle booted in favor of 'Whats In It For Me (WIIFM) principles.

In other words, if from day 1 there had been a price for limiting carbon dioxide (burning coal) then there would have been an incentive long ago for producing energy which didn’t pollute. As an aside – lets remember that nuclear energy also pollutes, as nuclear waste.

As an example had a carbon price been placed on energy, in lets say the 1950’s, we probably would not have had a carbon based energy cycle, but most likely a hydrogen based cycle by now. Why because when you oxidise hydrogen – you get water!

Any carbon-pricing scheme that doesn’t put the final burn on the consumer is absolutely flawed.

We all need to stop thinking of things from a monetary price only, and start thinking and taking individual responsibility for the long-term environmental price. 

In the very least lets see politicians stop pronouncing the word ‘Economic’ as ‘Echo-nomic’. Instead let’s hear them say it as ‘Eco-nomic’. As in: Ecology, Ecological etc. In doing so perhaps they will remember (and subconsciously remind the nation) of the significant true costs AND that one cannot exist long term without the other.

Population Policy
Put simply – Australia doesn’t have one. Again the result of political myopia. Why isn't there a Population Policy and when can one be expected?

Health: 
Medicare and pretty much every part of Australia’s Health policy and systems are failing due to short political sightedness - based entirely on a political rotation.

Medicare gaps are increasing sharply, private health insurances do not cover the short fall adequately and what we are now seeing is a system, less like Britain’s NHS and more like the train wreck, which passes for the US system.

This is most certainly NOT in the best interest of any Australian, nor the national economy. It is not possible to have a functional economy without a healthy workforce. The only economically sound and humane national health care policy is one, which is able to provide quality universal healthcare at point of access. Anything less is a national disgrace.

Preventative measures, are of equal importance. Unfortunately, the results of those of the greatest benefit will never be seen immediately, but further down the track in 5, 10 or 15+ years time. Which means, they carry no political currency what so ever.

As an example let’s consider the sugar debate. We know sugar causes diabetes and many co-morbitiies. These result in human suffering and significant costs to national and state healthcare budget(s). Yet still Australia’s federal politicians refuse to introduce measures to combat this - now and into the future. Again, this is a serious issue with a very simple answer and again the game of politics gets in the way.

The simple answer is a sugar tax, on all processed sugars and processed foods containing sugars (including the hidden sugars), with 100% of taxes being put directly into preventative measures such diabetes clinics, vegetable gardens established in every Gov. school nationwide and compulsory healthy cooking curriculums across all schools nation wide. It wouldn’t be hard to work these gardens and cookery components in to other subjects such as science – at early learning, primary and secondary education levels.

Similar programs could also then be established within the border community, such as community gardens and private allotments rented from municipal councils.

Immigration Policy:
Australia needs a more humane policy. No one is suggesting a free for all, but serious questions need to be asked and addressed. What is the true political reason Australia is unwilling to hand those suffering in off shore detention centres, to New Zealand?

Australian politicians, post 911 have used vilification and fear not only as an election tool but also to as an excuse for their cruel and inhumane immigration and ‘border protection’ policies. In reality from the earliest days of recorded history humankind has inflicted acts of terrorism on their fellow man. In fact the greatest weapon of terrorism is not violence, but fear and demoralisation.

Successive Australian Governments have deliberately created an Us v’s Them narrative which is now becoming a flash point within Australian communities and providing terrorists with exactly the result they are aiming to achieve.

The only real long term solution here is to turn the country of origin into less off a shit hole, or war zone than it is. A situation, which is only going to escalate due to forced migration due to the impacts of climate change.

Conclusion:
Australia’s political system (indeed the West Minister System itself,) is always going to be a double-edged sword. A candidate, or party can be as altruistic (and logical) as they like, but if never elected it’s impossible to give it any affect.

Nationally the electorate has become so focused on ‘what’s in it for me’, rather than what’s best for the nation.

Howard on GST is a great example of this. Howard wasn’t going to bring in GST - but then did!

Yes, the GST is an inconvenience (aka pain in the a***) at a business level – but it was also always going to be in the national best interest.

As it was under the old Sale Tax System most people had no idea what, had and didn’t have sales tax on it, let alone what the rate was! In the end the High Court ruled that it was unconstitutional and so it had to go; a point I believe was lost on those voting against the GST at the time. Oh how different the political landscape may have been now had the majority grasped this simple concept and voted for John Hewson’s GST in the first place. 

The major screw up with the GST is all the exemptions. Had the GST been a blanket system across all goods and services, the initial rate would most likely have been 5%. My suspicion is that in the not too distant future it will rise to 15%.

Watching federal politics these days is like watching political Tinder, with the constant swipe left, swipe right. Could we please now have some political stability, cease the nasty games and have some bi-partisan moves to pass some logical, simple legislation / plegolicies which act and work for the nation far into future. Instead of self serving political interest, including the focus on winning the next bloody election and this ridiculous Right v’s Left narrative; a divide and conquer narrative, which again, serves no purpose other than to fuel the Us v’s Them narrative. It doesn’t reflect reality either. Nothing in life is simply black and white, there are and will always be shades between.

Now before anyone gets their knickers in a twist on each of these examples, I do intend to address each individually component individually in later blogs. So unwedgie your undies, make yourself a nice cup of tea, put any religious angles and angles to one side (as religion has no place in politics: S116 Australian Constitution) and have a proper meditate on each of the examples and over all view point given here. 

I'm also including a few links, below for those looking for further information. 



(Document: Research by / for World Bank). 

Simon Holmes à Court    (and via Twitter) is a great place to find information links.

 

Looking After The Pennies.

My grandmother and her generation had a saying, “Look after the pennies and the pounds will look after themselves.” Simple, sound - advice.  Not dissimilar to (sound) advice given by Scott Pape, in The Barefoot Investor.

There is absolutely no doubt that financial anxiety exists. For the young, it might be saving to enter the home buying market. For the middle aged, paying that mortgage off and creating a financially secure old age. Whilst to the elderly, it might be will my superannuation and pension be, enough? And God help anyone with credit card debt!  This is why books such as The Barefoot Investor are so popular.

(Atheists look away now)
Luke verses 12:19 – 21 does not prohibit wealth, but clearly warns about its dangers. Simply highlighting that wealth does lead to self-sufficiency, but it can also lead to greed.

Financial greed hurts, not only the individual, but also society. A lovely example is negative gearing.

Negative Gearing, is essentially Government sanctioned greed. It has hyper inflated house prices and pushed housing availability down. Combined with the arrival of Airbnb, renting is becoming harder to secure and home purchase an impossible dream, even among middle-income earners. Homelessness is no longer the domain of only the destitute.

So what is negative gearing? It is nothing but a financial leverage, which allows investors to borrow money to buy, income producing, (investment) property. The assumption is that the short-term income will be less than the cost of owning and managing the property. The investor then expects that when later selling the property, there will be a tax benefit and capital gain on that investment, which exceed the losses.

The recent Royal Commission into the Misconduct in the Banking, Superannuation andFinancial Services Industry, has exposed the downfall of many ‘property investors’. These individuals are not wealthy; many are simply individuals seeking to be self sufficient enough to enjoy a comfortable old age. Unfortunately, as the Royal Commission is beginning to expose, financial institutions have targeted such individuals, providing them with loans they couldn’t possibly afford. Many of these individuals will now be lucky to keep their own home as they spiral out of control into their own financial crisis.

Perhaps it pays to remember that banks are not ‘our friend’, they exist to make a profit and provide their shareholders with dividends. Which brings us to another conversation – Labor’s recent announcement on Dividend Imputation Credits. An announcement, which gave retirees a great deal of anxiety.

There is little doubt that Australia does urgently need serious tax reform, but it requires a bi-partisan effort, which of course is utterly impossible within the current Australian political climate. Let’s be honest, these overpaid suits are so dysfunctional, Australia doesn’t even have a National Population Policy!

So, what does happen next? I’m not an economist, but my suspicion is that the banks irresponsible lending, (as recently exposed by the Royal Commission) may, potentially, have placed Australia in a similar situation to that created by Sub Prime Mortgage lending in the US – immediately prior to the Global Financial Crisis (Global Financial Recession, to those speaking UK).

The question is, will this push interest rates up? Will housing prices fall or would such a figure require the rolling back of negative gearing as well? If negative gearing was rolled back - could the fall be as much as 20% ?

As my Mother-in-Law says, “Greedy gets nothing.” Beware.







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