Sex, money and property developers
This story was intriguing when it first broke into the headlines but it now has more twists and subplots than a daytime soap opera. Everybody is having sex with somebody, people are passing out bribes, guys are impersonating ICAC officials to extort money, lovers are organising to knock eachother off. Even the state premier Morris Iemma makes an appearance on stage. And all in the name of motivating council staff to approve re-zoning and building permission in a state where property prices are through the roof.
Taxi Licences – a gross market distortion
According to an article in todays Age newspaper in Melbourne “Taxi licences have soared in value, jumping from $123,000 in 1989 to $474,390 now.” However this is not an issue unique to Victoria. Across many of Australias major cities obtaining the right to operate a taxi costs something similar to a suburban home. And that is merely the cost of government permission before you even pay for the vehicle and accessorites. This absurd situation has created a whole class of investors that own and trade licences and who have a vested interest in retention of the system. However it all comes at a significant cost to customers in terms of taxi availability. And even though taxi fares are generally regulated the viability of the industry demands that the fares set must accomodate the licensing costs. So consumers get a lower level of availability than they might otherwise and they pay a much higher price. All round the consumer is a big loser. An article last year in the Sydney Morning Herald suggest that in NSW the “cost to the consumer of excessive restrictions on taxi licence numbers is about $800 million per year“.
George Bush is funny
Whatever you think about the policies of President George Bush Jr., it’s easy to see why he’s such a successful politician. He has a sense of humour (something not as obvious in Obama, McCain and Clinton). For the average voter unconcerned with the details of policy it’s probably hard not to find Bush at least somewhat likable.
A (minimum-wage free) success story
Read about what happened back in the days when the US had no statutory minimum wages:
“…one young man didn’t want to stay on the farm so he approached a dry-goods dealer in town and asked for a job. After the guy decided to hire him, the young man asked what he would be paid. “Pay? Your pay? You should pay me for working here, you don’t know anything about the business. After you learn enough to be useful I’ll start paying you.” The young man worked three months for absolutely no pay.
How would you like to be that young man? For three months you are paid nothing, then you get a pittance after that. What did he think of his employer? Well, later he not only thanked the man for valuable lessons, but made him a partner in his own business. Maybe you’ve heard of that young man. His name was F.W. Woolworth and he became one of the world’s wealthiest men. What would have happened had that employer been forced to pay Woolworth more than his meager skills were worth?”
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