Tax cuts to be brought forward?

It really is a myth that the private sector is a panacea to all our ills and the public sector is wasteful. Cutting corners for expediency doesn't necessarily mean a superior performance or cheap - nor eliminate waste. Ask Victorians if the private sector did a good job looking after the quarantine hotels.

 

But we can we compete? Why dont we manufacture anymore??

 

Not exactly what I am saying. The private sector makes loads of mistakes, and we can identify these mistakes through a process we call "losses" or even "bankruptcy". Identifying government errors is more difficult.

So I am not saying the private sector doesn't make mistakes, just that the private sector is the source of all wealth generation. That's all.

 

We can compete in loads of areas, and we are a big exporter as well. Not great at manufacturing though, quite right.

 

We can agree on that although even then, its a moot point given the amount of capital the Govt is currently injecting into the economy from seemingly nowhere - remind me how that 'wealth' or 'debt' was created or even affordable?

 

Governments can't inject capital:- they have to take it from the private sector first. So no, governments can't stimulate the economy, they can't only redistribute. Here is the key problem.

 

That's simply not true... any Government with a central bank, can and does inject capital into the economy through monetary expansion which is balanced against subsequent inflationary risk. This monetary policy has been the norm since 1971 and is referred to as MMT but is not just a theory, it is more a definition.

 

True true, I was going to circle back with that. They can either inject currency through first taxing and redistributing it, or by printing it. Neither are net benefits to the economy of course, and the economic principle remains. Governments either tax the productive sector, or they devalue the currency. But neither is stimulus.

 

Can't wait for Phase 3.
The 2nd top bracket (32% inc. medicare) will be one of the best in the western world.

 

I think you're assuming the 'productive sector' returns much of its turnover back into the economy, which is certainly not the case - particularly with multinationals.

Redistribution happens all the time - often TO large corporations. Murdoch got $60 million from the govt this year, think about diesel subsidies and other mining subsidies and corporate welfare which are worth tens of billions a year.

Redistribution isn't inherently bad, but the people whose money is being redistributed tend not to like it and make noise about it. The more powerful ones obviously make more noise.

There is also nothing wrong with borrowing money to stimulate the economy in order to grow it, in order to give more people jobs, in order to further stimulate the economy in order to reduce debt to gdp ratio.

 

Stop being logical and making sense

 

Unfortunately for us Victorians (and looking more like the rest of Australia too, given the current spread) the state government was the actual employer in this instance.
Decided to do it differently to other states with unfortunately terrible results.

 

Private security was used in other states as well, including NSW