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by Neville Kennard, veteran preaching and practising capitalist

The government, and much of the mainstream media and the establishment business interests, want to create prosperity through spending. Many economists who have gone through the conventional universities still believe in the Keynesian model of “managing” an economy. Keynes, Samuelson, Krugman, Gittins have never “got” the essence of capitalism, of Austrian Economics as propounded by von Mises, Hayek, Hoppe. Governments do “stimulus” to crank things up. They exhort the banks to lend. They are not dumb people, but they are wrong. It is not “spending and consumption” that create wealth; it is saving and investment. Duh!

Before money can be spent on consumption it needs to be earned and saved; the alternative to saving first and then spending is borrowing and spending. Then you have to pay for it later. Duh!

Spending and Consumption are what follow Saving and Investment, not what precede it. It was an over-exuberance for spending and consumption that brought on the Global Financial Crisis. People borrowed and spent. Governments (in many countries), with their big-spending ways, their corrupt central banks as monopolist issuers of legal tender, encouraged this spending.

What should be done now, today, is for governments to cut spending — their own wasteful spending. Cut it now, cut it big. Cut government departments and the regulation that holds them up.

The next thing to do, tomorrow, is privatise everything in sight; this will balance the budget quickly.

The third thing to do, the day after tomorrow, is to cut taxes; eliminate many silly little nuisance taxes, cut company tax and personal income tax to a maximum rate of 25%. A max rate of government spending (all government — Federal, State and Local) to GDP must be 30% in the first year. Then reduce by 2% a year till you get it to 25%, then I will let you go a bit slower — say 1% p.a. till you get to 20%.

At 20% Government Spending : GDP the economy will boom and people will be prosperous. It’s the economy, stupid!

And that is it. Do no more. Sit back you busybody politicians and watch the correction take place. Go on holidays. You can stay in first-class hotels, drink champagne, have talk-fests, waste the tax-payers’ money — this will be less damaging then “doing things” (and you can still save face by saying that you’re doing your own stimulus spending). Go away, do nothing, and if you really have to do something, do some undoing. Undo, de-regulate, privatise, de-tax.

People who have over-indulged go away for a De-Tox at a spa. Politicians should take themselves off to such a place for a De-Tax. Clean up body, mind and economy.

(in order of appearance on
  1. Welcome from Neville Kennard
  2. Think Tanks Don't Work
  3. "Market Failure": Just what the government ordered!
  4. The Tragedy of the Tax Pool Commons
  5. Corporate Welfare
  6. Citizenship for Sale?
  7. I Don't Vote
  8. Voting: Right or Privilege?
  9. Stockholm Syndrome and our Love-Hate Relationship with Government
  10. Civil Disobedience: The Rules of Engagement
  11. Should Respect for Law Extend to Bad Laws?
  12. Jaywalking as a Demonstration of Individuality
  13. Government Likes War
  14. Collusion is Our Right
  15. Why Not the Drug Olympics?
  16. Unconventional Wisdom
  17. Tiger Farming: An Alternative to Extinction
  18. Looking Backwards: Mont Pelerin Society Conference, Sydney, 2010
  19. Tax Avoidance is a Patriotic Duty
  20. Kennard Writes to IPA Review Editor
  21. Genocide by Welfare: A Tragedy from the Aboriginal Welfare Industry
  22. Separating Sport and State
  23. Your Home is Not an Investment
  24. Dick Smith, Celebrity Philanthropist
  25. A Libertarian's New Year's Resolution
  26. Extend Politicians' Holidays to Create Prosperity
  27. Entrepreneurs are Disruptive, and Bureaucrats Hate It
  28. What is a good Australian?
  29. Governments Like Employment But Hate Employers
  30. The Market Failure Industry
  31. Neville Kennard: The Tax Avoidance Imperative
  32. Wot if ...?
  33. The Tribal Chief and the Witch Doctor
  34. The Tannehills
  35. Democracy versus Property Rights and Prosperity
  36. Government Doesn't Work, and That's the Way They Like It
  37. Minarchy vs Anarchy
  38. Euthanasia and Self-Ownership
  39. The Right Policies to Fix a Depression
  40. Is Howard Our Best PM?
  41. Tax Producers vs Tax Consumers
  42. Where There's a Queue, There's a Business Opportunity
  43. Authoritarian Freedom
  44. Why Classical Liberals Should Debate Anarchocapitalists
  45. The Tyranny of the Majority
  46. If you could choose to whom you paid your tax
  47. Business Should Exploit Boat People
  48. The Immorality of Trade Unions
  49. "America" vs "The United States"
  50. Sweet Anarchy
  51. The Illusion of "Job Creation"
  52. Gold Is Money
  53. Guilty Capitalists
  54. Bureauphobia
  55. Prosperity vs Growth
  56. Capitalism vs Democracy
  57. More people = More fun
  58. Self-Ownership - the very idea!
  59. Government will murder Neville Kennard if he doesn't back away
  60. The Australian Dollar Has Been Cowardly and Criminally Devalued, Harming the Poor Particularly
  61. Is Taxation Theft and Government a Tax Cheat?
  62. My Journey to Anarchy:
    From political and economic agnostic to anarchocapitalist
  63. Government Needs Bad Guys –
    that's why they like wars
  64. What Is Obscene?
  65. Traffic Economics
  66. Wayne Swan stands on the shoulders of other intellectual pygmies
  67. Neville Kennard Obituary
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