Power corrupts. Absolute power corrupts absolutely.-Lord Acton
Power corrupted the business community on wall street and caused the global financial and economic crisis in 2009. Power corrupted the political community and caused the downfall of the Labor Party in the New South Wales State Election in 2011.
There are a thousand hacking at the branches of evil to one who is striking at the root.-Henry Thoreau
Bernie Madoff was sent to jail, and the banks were bailed out.
Eddie Obeid and his corrupt right wing mates in the Labor party were replaced by the moderate face of Kristina Keneally, and the Labor party was bailed out.
The corrupt right wing of the Liberal party was replaced by the moderate face of Barry O'Farrell, and the Liberal party was bailed out.
The ruling labor government was voted out of office and replaced by the Liberal party in the election in March, 2011 with an absolute majority.
Power corrupts. Absolute power corrupts absolutely.
The branches of evil have been cut, but what of the root?
Saturday, March 26, 2011
A Super Profits Mining Tax for Australia
The Australian federal government has proposed a super profits tax on mining companies which seems to have stirred a great deal of passion from industry leaders and from leaders on both sides of the political spectrum. Unfortunately, much of this passion is directed at preserving entrenched interests, rather than providing a vision for the future of the country, and how Australia can turn the "luck" of a huge mining resource at a time of growing demand in China into a long term advantage for economic development.
The government clearly sees the super profits tax as an election winner, and the opposition sees it as an opportunity to defeat the government in the forthcoming election by aligning itself with the mining industry and opposing the tax on principal. Industry leaders with investments in the mining industry oppose the tax on the assumption that it will have a negative impact on their profits, and their bottom line. The public sees a wide range of entrenched interests trying to win them over by spending a lot of money advertising the reason for their support or opposition to the tax.
Industry and government leaders need to take a step back, think about the future of the country, instead of their short term interests, and take the course of action that is in the best long term interests of not only the government, or the mining industry, but every Australian. Minerals are finite, non renewable resources that are owned by all Australians, not the government of Australia, not the government of Western Australia, not the government of Queensland, and not the mining industry.
While the market system has proven to be the most efficient way of organizing our economy in the short term, it can be a ship without a rudder from a long term perspective, especially during a minerals boom. Resource booms in many parts of the world have provided enormous opportunities for development. These opportunities have often been squandered by not addressing the distortions mining and resource booms have on other sectors of the economy, on the political system, and on individuals. There is a price to pay for negative consequences on the environment, and on other export industries that decline because of higher exchange rates.
The most recent example of the type of costs that are not incorporated in the market system is the oil spill in the Gulf of Mexico in the United States by BP, which is having a major negative impact on the environment, other industries, individuals and government. A tax under such circumstances would not be unreasonable as a hedge against such unexpected consequences. The market system does not have a mechanism to capture these.
Large multi national companies do not necessarily have the interests of the country in which they operate as their highest priority. Their priority is to maximize profits. Unfortunately politicians do not always have the interests of the people they represent as their highest priority. Their priority is to stay in power.
The government clearly sees the super profits tax as an election winner, and the opposition sees it as an opportunity to defeat the government in the forthcoming election by aligning itself with the mining industry and opposing the tax on principal. Industry leaders with investments in the mining industry oppose the tax on the assumption that it will have a negative impact on their profits, and their bottom line. The public sees a wide range of entrenched interests trying to win them over by spending a lot of money advertising the reason for their support or opposition to the tax.
Industry and government leaders need to take a step back, think about the future of the country, instead of their short term interests, and take the course of action that is in the best long term interests of not only the government, or the mining industry, but every Australian. Minerals are finite, non renewable resources that are owned by all Australians, not the government of Australia, not the government of Western Australia, not the government of Queensland, and not the mining industry.
While the market system has proven to be the most efficient way of organizing our economy in the short term, it can be a ship without a rudder from a long term perspective, especially during a minerals boom. Resource booms in many parts of the world have provided enormous opportunities for development. These opportunities have often been squandered by not addressing the distortions mining and resource booms have on other sectors of the economy, on the political system, and on individuals. There is a price to pay for negative consequences on the environment, and on other export industries that decline because of higher exchange rates.
The most recent example of the type of costs that are not incorporated in the market system is the oil spill in the Gulf of Mexico in the United States by BP, which is having a major negative impact on the environment, other industries, individuals and government. A tax under such circumstances would not be unreasonable as a hedge against such unexpected consequences. The market system does not have a mechanism to capture these.
Large multi national companies do not necessarily have the interests of the country in which they operate as their highest priority. Their priority is to maximize profits. Unfortunately politicians do not always have the interests of the people they represent as their highest priority. Their priority is to stay in power.
Friday, February 04, 2011
Democracy in Egypt and the Middle East
The dominoes of dictators in the Middle East have begun to fall, driven not by United States armed forces, but by the will of the people who demand it. First Tunisia, now Hosni Mubarak in Egypt.
Sadam Hussein, if he were still in Iraq would no doubt ultimately be toppled by the will of the Iraqi people, given today's technology of instant communications. After ten years, the jury is still out as to whether Iraq will be a democratic country as a result of the US invasion. Not likely. It was a wasted effort, and a ruse over the people he represented, by a United States president with dubious election credentials and a personal grudge against the man his own government had helped to create out of self interest. Hardly a democratic process. Exposed by wiki leaks, a peoples movement!
Now it is Egypt's turn. The deposition of a despot imposed and supported by outside self interests. Democracy is a universal right that cannot be imposed by outside forces. Only by the will of the people. It is not a uniquely American institution. American style democracy has demonstrated over the past decade that it is far from perfect, and not necessarily the right model for other countries. Democracy is by nature an evolving process, not one that is dictated by the tenets of founding fathers who created institutions for a different time. The people who depose unjust governments will establish unique forms of democracy tailored to their own interests.
It will be a fascinating process to watch, not just in Egypt but in all countries ruled by unjust self interests. That includes not only North Korea, Lybia, Iran and China, but also the United States if it's government's deviate from the will of the people they represent.
Democracy is coming to the USA !!!
Sadam Hussein, if he were still in Iraq would no doubt ultimately be toppled by the will of the Iraqi people, given today's technology of instant communications. After ten years, the jury is still out as to whether Iraq will be a democratic country as a result of the US invasion. Not likely. It was a wasted effort, and a ruse over the people he represented, by a United States president with dubious election credentials and a personal grudge against the man his own government had helped to create out of self interest. Hardly a democratic process. Exposed by wiki leaks, a peoples movement!
Now it is Egypt's turn. The deposition of a despot imposed and supported by outside self interests. Democracy is a universal right that cannot be imposed by outside forces. Only by the will of the people. It is not a uniquely American institution. American style democracy has demonstrated over the past decade that it is far from perfect, and not necessarily the right model for other countries. Democracy is by nature an evolving process, not one that is dictated by the tenets of founding fathers who created institutions for a different time. The people who depose unjust governments will establish unique forms of democracy tailored to their own interests.
It will be a fascinating process to watch, not just in Egypt but in all countries ruled by unjust self interests. That includes not only North Korea, Lybia, Iran and China, but also the United States if it's government's deviate from the will of the people they represent.
Democracy is coming to the USA !!!
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