Political Economy, Academic Progress, Rabbit Health

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Dove-tailing with the Henry Review Prosper Australia have a petition calling for a review of costs of home ownership and the role of land prices (which the Henry Review was quite smart about. I have written an article on such matters entitled The Spectre of Henry, and have started a group called Land and Labor in support of the Henry Review. I am of the opinion that this is the most significant social justice reform that has been raised for decades, but alas, discussions public finance is typically a cure for insomnia.

On a related issue I received assignment results back from my two MBA courses for this semester; an 80% grade for Economic Decision Making, where I wrote on the implementation of an emissions trading scheme and subsidies for the electricity generating industry (where I suggested that they be treated like the tabacco industry) and 92% for Business Law, which was analysis of a recent Service Level Agreement. The former grade was docked a few percent because I forgot to include proper citations for two graphs - although in the process of tidying this up I did get in contact with one of the authors who seems to be a delightful chap.

One of our rabbits, Astaroth, has stopped eating which is a particular problem for a grazing animal. A visit to the local vet has diagnosed a sore tooth and has provided the usual medicines (anti-inflammatory and anti-biotic) for such a problem. At the moment we're feeding him baby food via a syringe, which he is hardly thrilled about. If he is not eating of his own accord by Monday it'll be off to the vet to get a tooth extracted. Presumably in the wild a toothache is a death sentence for a rabbit.

Comments

[(Anonymous)]

The "standard business risk" for mining companies is way higher than other companies.

[[citation needed]]

Taxing Australian profits at a higher level than overseas profits can surely only encourage companies to invest in mining ventures in other countries in preference to local ventures.

In the short term, yes that is a possibility. Keep in mind however that the resource rent proposed in the Henry Review is only for abnormal profits, and secondly other countries also have fixed resources. It's not as if mining companies can make more minerals, all they can do is find them.

If what you are proposing is true, then a company with a higher resources tax would be less attractive for a mining company with a lower one. Yet, the Botswana experience is one immediate example where that is not the case and I suspect it is largely because there are always other effects to the implementation of such a method of public finance.

(Botswana has the highest GDP in southern Africa, the lowest crime rate, the lowest taxes on labour and capital, the highest level of literacy, and a stable constitutional democracy. Given how bad it was at the time of independence, this is nothing short of an economic miracle).

The time to tinker with things is when everything is stable and you can validly measure the results, not when the world economy is looking precarious.

Actually, when things a precarious is often the best time to engage in fundamental change. We needed a fundamental change to the tax system precisely because it penalises production, and encourages mis-use of natural resources. We need to increase our productivity and this is certainly one the quickest and easiest methods to implement the change.

Consider the advantages of shifting the public finances off the work that people do. Of every good and service you purchase, how much of the consumer cost do you think is taxes? About 40% or more? Add the GST, add in the income taxes to pay the workers, payroll tax, transaction duties, company tax for the business etc.