Gary Knight explains how free trade and small government is the only way for our economy to survive:
Recently in light of the shedding of some 1000 jobs by steel maker Bluescope, CWU chief Paul Howes has called for a return to protectionism to shelter trade exposed industries from the negative effects of the high Australian dollar. In particular he has called on government to regulate mining companies to be forced to buy Australian made steel.
Mr Howes connections to The Socialist Alliance are well known, as are his claims to abandoning his socialist beliefs and recognizing the power of the market to provide prosperity. I wonder then why at every opportunity he advocates policies that could be described as none other than socialism by stealth. Surely there has not been a more ridiculous claim in recent years from the unions to use government to dictate where one industry must procure such an integral part of its operations, steel. Although, I do believe to be left leaning in your politics stems from an inability to properly integrate economic history with current events.
Unintended consequence! Sometimes it is so obvious maybe it is intended.
Mr Howes economic genius was best expressed on a recent MTR segment on the 23rd of August featuring Steve Price and known conservative Andrew Bolt. Mr Howes expressed the view that if we had the Resource Tax on mining in place, the dollar could be down and allow our steel to remain somewhat competitive. His basic message is he wishes to use government to punish companies for productivity and reward those who do not compete via government enforced redistribution.
Mr Bolt engaged in a futile back and forth where Mr Howes was unable to have the consequences of his economics explored in full. Mr Bolt was able to ask some questions but they were readily dismissed by Mr Howes as he continued his Rant on protectionism.
Mr Bolts questions boiled down to these two essentials questions:
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