Big business is asking for more of our money again. This time it’s the motor industry. They want a freeze on tariff cuts, as well as a boost to their $3bn welfare package, and they claim that job losses will result if their demands aren’t met. This is clearly a bogus argument: skilled labour is in demand now more than ever, so these workers would have no trouble getting a job.
The current situation reminds me of some of the economic policies of Italian Fascism. In the words of Gaetano Salvemini, “the State pays for the blunders of private enterprise… Profit is private and individual. Loss is public and social“. It doesn’t make any sense. If these failing car manufacturers were actually able to profit without being propped up by the taxpayers of Australia, we wouldn’t receive a dividend. But still we have to share in their losses in the form of both subsidies paid out of our pockets, and the inability to purchase cars at a cheaper price due to their lobbying for tariff protection. It has to stop.
John outlines the LDP’s solution:
I have an alternative proposal for the car-markers. They can either survive on their own, or fail on their own. Not one cent of taxpayers money should be wasted in proping up failed businesses. There is no economic benefit from having our resources (scarce capital and skilled labour) tied up in a business that can’t compete.
Filed under: Commentary, Policy
While I just luuuurve that quote you’ve found yourself there (too true IMO), I’m inclined to agree with you in that tariffs should be reduced.
I wouldn’t mind more emission-based tariffs (or deductions in tariffs), thus promoting more responsible use of petrol. I’m not crazy about the country promoting further consumption, though the trade back of reducing our reliance on oil I can certainly endorse.