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by Ronald Kitching, dissenting editor

Highway Robbery and The Canberra Kremlin’s Respectability

Julia has appointed Don Argus to deal with her Resources Minister, Martin Ferguson, with regard to a suitable additional tax on successful explorers and miners.

Julia regards Argus as a man “who has spent his career in the mining business.” After he retired from the Chairmanship of the National Bank, Argus became Chairman of BHP for ten years.

As a banker and Chairman of BHP he worked under the auspices of the profit and loss system. Businessmen always take the most appropriate action to avoid losses and maximise profits.

To negotiate a deal with Martin Ferguson, he is no longer a businessman dealing with profit and loss, but a bureaucrat as is Ferguson.

Bureaucrats have to abide by the codes and decrees of a bureaucracy, that is by rules.

But under Julia’s instructions it is a matter of deciding just how much of their profit they can rob from successful explorers and miners.

The two pillars of democratic government are the primacy of the law and the budget.

The Labor party blew its budget in its spurious spendathon, to “stimulate” a bursting bubble into receding from bursting, into a state of further expansion.

Now desperate to recover billion of dollars, Labor has decided to rob successful entrepreneurs of their legally acquired profit.

No matter how it is dressed or disguised by respectability, it remains highway robbery on a grand scale.

Honest Money and Inflation

One of the most urgent tasks of reformers is to institute honest money. That means money that does not inflate. That in turn invokes the gold standard.

Politicians did still inflate credit under the gold standard, but sooner or later they had to return to the standard. This brought about a relatively small recession as their world returned to reality.

Thus the inflated value of capital goods, real estate, and of countless millions of articles and items produced and soldwere quickly re-established, by the always impartial market.

Judging by the promises made by all parties, the only way they can be even partially fulfilled is by inflation. Since the gold standard was abandoned by all of the belligerent nations engaged in WWI, inflation has become a way of life.

They inflated, since if they taxed the populations, the war would become very unpopular. Today, war or no war, they inflate to fulfil their promises, as taxing the population would make them very unpopular.

So they engage the hidden tax of inflation, whilst mouthing platitudes about “fighting inflation”.

The only way to combat this criminal deceit, is to directly penalise the politicians and the bureaucracy they engage to engineer the deception.

Say a 2% pay cut for every single percentage of inflation, plus a complete loss of pensions for the illegal activity. That may engender a return to reality at the Canberra Kremlin.

All About Workplace Entitlements

When addressing the National Press Club and answering questions today (17/08/10), Tony stated that he now regards his “visionary social change” of paid parental leave for women having babies, as “A Workplace Entitlement.”

Judging by the way he talks, if he loses the election he will make a great union organiser.

As most union organisers are now lounging in the Canberra Kremlin or the United Nations, there ought to be a great opening for good hard knuckle men like Tony at the front where the action is.

A Return to Protectionism?

I have noticed, especially among left leaning members of the establishment on both sides of Federal and State parliaments, and among some left leaning economists and others who should know better, a tendency to return to protectionism.

Protectionism is a poisonous destructive fallacy.

Free trade internally and externally leads to more competitive productivity thus maximising the division of labour and this in turn maximises all participants’ marginal utility.

This leads to the best possible use of always scarce resources, and so, a more productive society internally and externally and finally leads to higher living standards for all.

Free Trade and Prosperity

It was not until June 25th 1846, that Richard Cobden and John Bright convinced Prime Minister, Robert Peel, and, with help from elder statesman, the Duke of Wellington, the British Government abolished tariff protection, (on grain).

Such were the obvious benefits, England went completely free trade by 1848, and little England went on, over the following fifty years to become Great Britain.

This rise in living standards is confirmed by historian Paul Johnson in his admirable book Enemies of Society:

“The achievements of the new economic civilisation became undeniable. In the end capitalism, [the free market system], brought much greater equality.

“Gregory King calculated in 1688 that Lords got 3,200 pounds per year, and gentlemen an average of 280 pounds per year; the mass of the poor got 2 pounds. There seems to have been little change between 1688 and 1800; thereafter the equalising process began to operate, and the gigantic disparities between rich and poor, so characteristic of all pre-industrial societies, slowly narrowed, a process which continues today.

“What, in material terms is more important is that, at the same time, the real wealth of all increased. In nineteenth century Britain, the size of the working population multiplied fourfold; real wages doubled in the half-century 1800-1850, and doubled again, 1850-1900. This meant that there was a 1,600% increase in the production and consumption of wage-goods during the century.

Nothing like this had happened anywhere before in the whole of history.

Free Markets and Economic Progress

The founder of the Austrian school of Economics, Carl Menger wrote:

“There is only one sure method for the final victory of a scientific idea, namely, by letting every contrary proposition run a free and full course.”

As pioneers and creative thinkers the Austrian scholars were fully aware that scientific progress cannot be organised and innovation created by bureaucrats, according to plan. All past communist states remain as failed monuments to State planning.

Truth will prevail by its own force if man has has the ability to perceive it. If he/she lacks this ability, reason cannot help people who cannot comprehend the content and significance of a doctrine.

The doctrine of free markets has opposition from many nationalists. History shows conclusively that economic nationalism breeds wars and poverty. The 74 year experience of the late Soviet Union and its ultimate collapse in particular, showed this to be so.

Free markets breed respect, tolerance and ever increasing prosperity for the masses. This has always been the case everywhere; and as the facts reveal in modern times in India,  China and elsewhere, capital accumulation invested competitively in the tools of production, is raising the productivity of labour and hence real wages and living standards.

Pressure Groups and Inflation

Some senior business executives, who should know better, are making suggestions that the GST ought to be raised in order to lower taxation on business.

At the same time politicians are making vote buying promises that cannot be sustained by honest money. It is obvious that inflation will have to account for their largesse.

This in turn will lower the living standards of the masses. Inflation is the most serious social disease humanity unnecessarily endures.

The rhetoric clearly indicates that we live in a command economy, when the politicians decide who they will rob in order to reward those pressure groups who vote for them and their Robin Hood policies.

In the real world such actions are regarded as criminal, but in their world of fantasy, it gives the occupants of the Canberra Kremlin a thin veneer of respectability.