Economics is, or should be, basic book-keeping. Gross Domestic Product must exceed Gross National Debt in any year for there to be a surplus. It’s easy for a Treasurer to fudge the books, however, because all budgets are done a year ahead and are a projection or wish list. What if the new Independent government introduced two transparent budgets each year, one for the year gone, and then a wish list for the year to come guided by the previous year’s balance? Maybe government could do as the commercial world does, and encourage investment to obtain revenue for projects which could generate profit.
International trade is the major source of G.D.P. We should make trade agreements with other nations that are win-win, even if this requires tariffs. There is no sense in trading indiscriminately globally. If we do, while poor nations become richer, we will rather quickly become poorer. It might be noble and unselfish, but as politicians our new Independents would have a duty to foster Australia’s prosperity rather than be noble. Anyway, taken in complete context, as a parent must attend him/herself in case of an emergency in an aircraft, ahead of and to ensure the safety of the child, Australia must ensure our own welfare before attempting to minister to third world nations. International aid often goes to corrupt national leaders and officials rather than to the people it is meant to reach. I believe charity begins at home.
We shouldn’t put too many eggs in the one basket for the sake of financial profit, however. For instance, we depend for revenue for universities far too much on Chinese students because they are wealthy. We should (to mix the metaphor) cast our net wider, look less at financial profit, and take in Indian students and help bind the ties between us and a well-populated and well-defended democratic nation.
I believe we should strengthen our ties with India in regard to trade and military endeavours, and loosen our dependency on trade to China. It is a rather risky business if we get on the wrong side of China while economically dependent on that nation.
We produce wealth at home, not as much of it or as wisely as we should, but I’ll deal with that in another blog. We ride on the backs of primary producers yet financial institutions which ‘earn’ interest from lending for investment seem to be the most rewarded of the sectors. While interest is necessary to motivate investors to lend, and, as small business operators know all too well, one must spend money to make money, perhaps finance could be organised more equitably by way of reformed tax system. Negative gearing coupled with dependence of low income people on the private rental sector helps only the better off.
We have far too many taxes in Australia. We could get rid of State and Council taxes and levies and increase income tax, giving the States and Councils proceeds from that. I would also be more inclined to give tax breaks that were proportionally higher to lower income workers, than to the wealthy for the mythical ‘trickle down effect’. Those on lower incomes spend proportionally more than the wealthy on goods and services.
While on the subjects of economics and trade I should mention the trend of the United Nations and other global players which are intent on imposing universal order. Only a nation state can effectively govern democratically, but faceless people attempt to draw us into the web of their power and influence. They argue that world peace and prosperity will ensue. I seriously question that. They draw us into conflict, ‘fighting for peace’ in wars that don’t concern us, and bind us economically in ways in which we could eventually be economically blackmailed. ‘Fighting for peace’ is an oxymoron if ever there was one, and we are morons to fall for it, and we need to be wary with whom we make trade agreements.
And if world peace DOES ensue from our unity under these faceless foreign folk, at what cost? The cost to our freedom, that’s what cost. Let Australia remain free and independent of all international organisations. I am even sceptical of the International Monetary Fund.
I believe we should depend on no-one, not even the United States of America, militarily or economically. We should form trade and military alliances, but not exclusive ones, and certainly not let ourselves be blackmailed by any nation with a “If you’re friends with him, you can’t be friends with me” playground bullying tactic. We should have trade and military agreements with whatever nations we choose.