Hung Parliament = More Government, Not Less
Though there’s plenty of healthy cynicism over the notion of a “new paradigm” in Australian politics, there also seems to be an idea doing the rounds that since a hung parliament makes it difficult for legislation to be passed too easily, that it’s good for libertarian principles. Perhaps in some instances this is the case, but if history of the senate has taught us anything, it’s that those who hold the balance simply trade off: “You give me legislation in this area, and I’ll support you on this one.” I find it hard to recall of a time where an independent or minor party candidate ever successfully negotiated less government interference in our daily lives (though I’m happy if someone can point to an example.)
It now seems Tasmanian Independent Andrew Wilkie has decided that his main policy is poker machine reform (remember how in the 80′s, “reform” was all about removing market impediments? God, I miss the 80′s!,) and I’m guessing he’ll get some action in that area. Of course, poker machines would generally be a state issue, which is why Wilkie ever so helpfully suggested use of the Corporations Act – the Fed’s favourite tool for trouncing state’s rights. What this effectively means, is that an independent from Tasmania is laying down the law for NSW clubs and their patrons (all for the greater good, of course).
Just in case you were thinking this is a small enough price to pay, rest assured it’s just the tip of the iceberg. The new minority government (whichever side that might be) hasn’t even started legislating anything yet – all of the current “negotiations” are just for starters. I found the following to be a particularly ominous sign:
The trio (Gillard, Wilkie and Wilkie’s wife and media adviser, Kate Burton) then began talks over a jug of water and a thin black binder placed on a coffee table.
The binder looked identical to packages Ms Gillard handed recently to three other independent MPs which touted Labor’s record and election promises bearing on their electorates.
Welcome to the new paradigm.
UPDATE: Wilkie has now released his 20-point list of priorities. Delivering on these would cost billions – and that’s just for the dental plan. But most amusing was number 20, which basically asks for a bigger office:
Adequate staffing and office space to deal with the workload of an Independent Member of Parliament.
Short and Sweet
There is still some confusion over short selling. This confusion leads people to support bans and restrictions on short selling which make very little sense. I think some of the concerns stem from simple misunderstandings and so I’m starting a public education campaign.
The simplest type of short sale is a forward sale agreement. If I enter a contract to sell a bicycle one week in the future I have made a short sale. If I own a bicycle at the time I enter the contract it is a ‘covered’ short sale. If I don’t own a bicycle at the time I enter the contract it is a ‘naked’ short sale.
Making the buses run on time.
The following podcast is well worth listening to. It outlines how the government of Chile has destroyed a thriving privately operated public transport sector.
http://www.econtalk.org/archives/2010/08/munger_on_priva.html
In short Chile went from having an average commute time of 40minutes to having an average commute time of 1 hr and 40 minutes because the government took over the bus industry in 2007. Not only did they take over the industry but they changed drivers incentives. Now the buses are half empty, people can’t get on them, they take longer to get anywhere, congestion has increased as people have shifted to cars and taxis and where the industry once made a modest profit it now loses masses of money. Tragic.
The US commerce clause
In America, like Australia, the federal government has been intentionally mis-interpreting the constitution in order to take ever more powers from the State governments and the people. One of their main tricks is to mis-use the commerce clause. The intent of the clause was to prevent the different states of America from imposing trade restrictions on each other, but it is now used to regulate any activity of business. This extends to regulating growing of wheat on your own property for your own consumption. Reason TV tells the full story…
-
Recent Comments
Catallaxy Files- The Bunyip is evil February 8, 2012The professor suggests that the Victorian liberals should contest the seat of Niddrie recently vacated by Rob Hulls. Hulls held the seat by 6.9% at the last election — a margin any popular Premier with even a modest record of achievement might have seen his candidate make up. (emphasis added) Heh. Well, yes.Sinclair Davidson
- False and misleading conduct February 8, 2012Here is the ACCC describing Misleading & deceptive conduct. There is a very broad provision in the Australian Consumer Law that prohibits conduct by a corporation that is misleading or deceptive, or would be likely to mislead or deceive you. It makes no difference whether the business intended to mislead or deceive you—it is how [...]Sinclair Davidson
- Economic debate in 2012 February 8, 2012I have an op-ed in The Drum that talks about the two approaches to economic policy in 2012. Both government and opposition want to talk about economics – very exciting for policy wonks, not so exciting for everyone else. But the bottom line is this: Julia Gillard and Wayne Swan can huff and puff as [...]Sinclair Davidson
- The Bunyip is evil February 8, 2012
- inCISe
- Rebate should not be means tested February 8, 2012The government’s three-year long effort to means-test the subsidy for private health insurance (PHI) is about to move into top gear. We should brace ourselves for a barrage of spin and nonsense. Although an advocate of spending cuts and smaller government, I hope this particular measure fails to gain the necessary support from independents to get across the […]Robert Carling
- Auto industry privileges are irresponsible February 8, 2012A program of perpetual subsidies for any industry is both economically irresponsible and morally unfair. Over the past weeks, there has been a resurgence of protectionist rhetoric and anticompetitive industry policy. Under the rationale of preserving a domestic manufacturing sector and saving local jobs, the federal government has renewed its assistance for […]Alexander Philipatos
- Dr Hartwich ‘economist extraordinaire’ February 6, 2012All tickets have sold for tonight’s fiscal talk by Oliver Marc Hartwich. He will address Europe’s mess some call the economy, and look at the growing opportunities available in Asia for Australia. If you were unlucky and didn’t secure a ticket, don’t fret, a full video recording of the talk will be availabe in the coming days. In the […]Editor
- Rebate should not be means tested February 8, 2012
- IPA news
- Scientific research drowning in a sea of alarmism February 6, 2012Last week, almost 400 people attended a public meeting in Newcastle to learn about the scientific evidence that underpins...
- Who'll drag us free of our heavy debt burden? February 2, 2012While most Australians were tanning themselves at the beach during their summer breaks, the federal opposition and the...
- Renewable energy rules lose traction January 31, 2012Energy policy in Organisation for Economic Co-operation and Development countries is spurred by concerns that gas...
- Scientific research drowning in a sea of alarmism February 6, 2012
