The Wild West ... the outback ... The new world of the 1800s was a time of true liberty. People stood on their own merits. They won or they lost and they reaped the rewards or swallowed the consequences. There were no cubicle dwelling civil servants hell bent on saving you from yourself. No planning permits no licenses no permissions no heritage overlay no bylaw no regulators no inspectors. And guess what ... it worked

This site is set up to provide a forum for a number of like minded professional economists to post and comment on contemporary issues. There are a number of regular contributors whose bios are made available on the site. Most if not all of these contributors use a pseudonym for the simple reason that they are practicing economists who must take into consideration the commercial implications of posting their opinions.

While some may feel that this is a bit of a gutless approach it is the only way we can ensure free and open discussion without jeopardising our paycheques.

Wednesday, July 8, 2009

US stimulus based cartoons

Given that the bulk of aussie media is still very kev centric I thought you may appreciate some of the comment comming out of the US, especially some of the political cartoons.

Although they obviously pertain to a different government, there are enough parallels between the two that may allow an australian audience to appreciate the humor.









Would Johny and Pete have done it different (Roy Rodgers)

Of late I've been getting the impression that people believe the liberals would have reacted to the threat of recession in much the same way that big kev has. And while its probably true of turnbull, its probably very untrue of howard and costello.

I suspect there would have been nowhere near the amount of bailing out. Howard and Costello proved that they were willing to let large firms go under .... let the market have its way .... every one should remember ansett, one tel and HIH. Do you think for a second that big kev has the ticker to let the market discipline these firms.

And i also suspect they wouldn't have embarked on the same keynesian response. See the attached interview from stanford uni in April 2009.


If for nothing else its worth a gander just to remind yourself of how different the libs used to be. Its also interesting to note that in just one short interview howard is able to evidence more understanding of the the current global credit crisis than big kev could muster in 7000 words.

Monday, June 29, 2009

2020 Health Submission 2523 (Doc Holliday)

Another excerpt from Australia 2020 Nutjobs, Happy Clappers and Carpet Baggers

Submission

Is the solution to binge drinking in Australia to halt the development of any new liquor outlets and pubs? Or is the solution more individualistic: limiting the number of alcoholic beverages each person can purchase and consume from pubs and liquor outlets? Possibly by having a card system in place: similar to those used in public libraries, that monitor and possibly limit how much alcohol a person both purchase and consume from liquor outlets and pub venues?

Wrap Up

Binge drinking, it is argued, is an epidemic currently gripping Australia. If you haven’t succumbed to binge drinking, then your loved one has, or your neighbour hasn’t, then your neighbour’s loved one has …

It has not been established, to my mind, with any certainty that binge drinking today is any worse than it was yesteryear. Indeed, the evidence suggests that Australians, on average, are drinking less. The Australian Institute of Health and Welfare (Health Australia 2006), reported that in 2003 (the latest year for which cross-country data is available), Australians drank on average 9.8 litres of alcohol a year (the equivalent of 1.25 bottles of wine a week). This was the ninth lowest out of a sample of 22 countries. This is one-third less than what was consumed in 1973, and about the same as 1963. The long-term trend is a decline in alcohol consumption.

Yet some dear citizens have suggested that we need an alco-card to ration the alcohol we can purchase from the local bottleshop. Let us assume that such a project will cost $100 million to issue cards to all our dearest throughout Australia.

Clearly, under-age drinkers wouldn’t receive an alco-card, since they are automatically prohibited from purchasing alcohol. So clearly, the card applies to alcos older than 18 years. Should it apply to everyone? How do you tell if someone has a drinking problem — from the colour of their nose? What if you don’t have a drinking problem, are you still limited by a quota? Does the local priest need an alco-card if he is bulk purchasing wine for Holy Communion? Does the congregation have turn up with their cards? Did Jesus have an alco-card?

Certainly, a small community may get together to ban access to alcohol. But it is not clear that a member of the general public, fully sober and rational, should be penalised because they like a nice drop after work. And finally, who would enforce it? Prohibition didn’t work in the 1920s and I doubt it would today.

Back of the Envelope
  • Cost: $200 million including enforcement costs
  • Expected impact on average earnings: Unchanged
  • Expected impact on economic growth: Unchanged
  • Impact on incentives: Big incentive to set up illegal alcohol sales. Random alco-card checks
  • Impact on governement spending: Big increase in enforcement
  • Impact on taxation: $200 million
  • Winners: Green teas salesmen
  • Losers: Everyone else

2020 Helath Submission 1177 (Doc Holliday)

Another exerpt from Australia 2020 Nutjobs, Happy Clappers and Carpet Bagers

Submission

Supertooth and Good Food Friends are online school community projects that recognise chewing … [displaces] food… left trapped between teeth and inside pits and fissures … after every meal or snack

Wrap up

Tooth decay, it is argued, is the next most expensive chronic disease, after heart disease and type 2 diabetes. It is well known that, apart from fluoridation of water, chewing certain substances after a meal can effectively reduce tooth decay.

When you eat starchy foods, leftovers get into the pits and fissures and between your teeth. Chewing ‘hard’ after a meal displaces the lodged material. Moreover, it also promotes the production of saliva, which can also get into those hard to get places. Examples of hard food include foam strips impregnated of barium sulphate, non-cariogenic foods (such as nuts), and celery string.

Say what? It’s hard enough to hand out nuts at any school for fear of poisoning some allergic kiddie. And strips of barium sulphate? If kids don’t start tripping, their parents certainly will.

And you can’t seriously contemplate doing it at home either. Can you imagine introducing a reward system for your children: ‘son, if you do your violin lessons, I’ll give you celery string’. Why stop at celery string, why not feed them really small pebbles? ‘Crunch on these, son.’

But the emphasis o on education not handing out food. Poor bloody teachers are bombarded every day with requests by interest groups to gain access to the young kiddies. Our kids are certainly being educated, but not how to read and write.

If tooth decay is serious enough a health issue, most people would eventually learn of its importance and learn to floss a bit more.

Back of the envelope

  • Cost: $100 000 plus reduced literacy levels
  • Expected impact on average earnings: Unchanged
  • Expected impact on economic growth: Unchanged
  • Impact on incentives: No incentives for kiddies to do extra curricular work
  • Impact on government spending: Slight increase of $100,000
  • Impact on taxation: Slight increase of $100,000
  • Winners: Dentists and nut sellers
  • Losers: Kiddies no longer being able to read and write.

Tuesday, June 23, 2009

Whether to laugh or cry. (Roy Rodgers)

We’ve all heard about the economic stimulus. And we all know the basics …. Its a yea old school style reversion to the madness of Keynesian economics.

However, no amount of forewarning can prepare you for this …

http://www.economicstimulusplan.gov.au/pages/default.aspx

I must admit that when I first encountered this site I laughed solid for a good 2 hours. Then I emailed it to my mates and got to experience the joy of listening to them go hysterical.

For maximum frivolity go to the community infrastructure page and check out the list of approved projects. Some of the highlights include

- Water bubbler program in Mosman — installation of water bubblers in various locations around Mosman, some (note not all) providing specific wheelchair access - $20,000.

- Dunny and signs - Nackeroo Lookout Area Upgrade, Timber Creek. Upgrade of the Nackeroo Lookout area, including the construction of ablution facilities, commissioning and installation of interpretive signage for tourists and signage on road and tracks to ensure environmental damage is limited. - $110,000

- Green dunny - Construction of an Eco-Friendly Public Toilet at Springdale Park - Construction of an eco-friendy, composting public toilet in Springdale Park at Barellan Point, $83,500

- Air conditioning - Community Hall Air-conditioning Installation, Bowen - Installation of split system air conditioning in McKenna Hall, Bowen. $100,000

To give you a point of reference National Builders Group is currently prepared to build you a single story house with two bedrooms, two bathrooms, one kitchen, a lounge, a dining room, a lockup garage and a theater room for $131,900. Included in that price is a margin for the builder.

There are over 500 pages of these projects. God knows how many council staff kitchens are being upgraded. And then there’s another list for “strategic projects”. This list is even more hilarious because here the numbers turn from thousands to millions.

I'm not sure when green dunnies and air conditioning became core economic infrastructure, but hey this is how were going to beat the recession (the one were not actually having).

Word of caution … after you stop laughing you will start crying.

Monday, June 15, 2009

2020 Health, Foreign Affairs and Sustainability (Roy Rodgers)

In case you've just happened across this blog site and are a bit confused about the 2020 carry on. Its all explained in an earlier blog on May 24.

As a refresher .... the posts are excerpts from a book that my compatriots and I started to draft regarding consulation and 2020. We never actually finished it, but we thought there was value in posting what sections we had drafted. Its also highly unlikely that anyone other than this blogs authors will ever bother to read our posts so we figured it couldn't hurt to throw them out into the blogosphere (or whatever its called).

If your still confused ................................

2020 Sustainability submission 856 (Roy Rodgers)

WARNING THIS BLOG CONTAINS REPEATED REFERENCES TO HUMAN WASTE

Submission

find isolated areas around the country, in this areas we would put our human waste straight into a deep bore hole. The theory is that the waste will move its way back into our water streams with the distance from the waste station to the natural water systems used to filter the water.

Wrap up

This submission belongs in the hey lets create an inland sea category; however it has a wicked little twist that makes it worthy of comment. The idea is short, succinct straight to the point. Basically 856 is proposing that we dig big holes in the desert and fill them up with poo.

Why you may ask? 856 (he/she, although to be honest my money is on 856 being male) provides the following justification. The idea is that we create massive pits of raw sewerage in central region of Australia. This sewerage would then filter through the indices of rock and soil, depositing little bits of poo as it goes, and hopefully by the time it encounters a water source, whether it be an aquifer or a river, it will be pristine and pure. Otherwise, there are going to be quite a few rural Australians complaining about the taste of their water and the discoloration it leaves on the washing

Of course there are a couple of minor issues with poisoning vast tracts of remote Australia. Any proper assessment must consider both the benefits and costs. Lets start with the benefits.

For starters percolating through indices of rock and soil is probably not the speediest way to treat sewage. As a method for generating additional sources of water its best suited to those that are prepared to wait a couple of thousand years. It is definitely not going to satisfy the needs of drought effected urban populations. Given that actual supply augmentation may not be a big bonus we have to extend our analysis to consider social and environmental benefits. It is obviously a big plus for anyone who enjoys poo skiing or poo sailing (depending on the size of the hole), although measuring the value of this benefit may be a challenge in and of itself. Another external benefit would be the possible food source it would create for any native animal with the gastronomical dexterity to deal with human waste.

What will it cost? In the absence of any robust analysis we can generate some indicative numbers. A recent estimation of the Melbourne to Gippsland pipe line for recycled water is approximately $2 billion. Given that this pipeline covers a relatively small area, is designed to transport water (which by its very nature is less bulky than sewage), and is able to use gravity and thus requires less pumping, we can safely say that creating a national network of infrastructure that moves sewage from the major urban centers (being at sea level) to massive inland pits (don’t forget the pits, we need some holes and they need to be quite large … actually they are going to be so big that they’ll constitute inland seas of poo) is going to cost in pure economic terms a SHIT load. And that is before we actually factor in external costs such as the anticipated obesity epidemic in desert dwelling goannas.

The back of the envelope

  • Cost: $shit load
  • Expected impact on average earnings: Hello poverty
  • Expected impact on economic growth: Australia to become the very first developed economy to regress to a level of economic activity that matchs that of pre-settlement
  • Impact on incentives: If the full cost is passed through to consumers in their water and sewerage charges there is a strong incentive to cease defecating
  • Impact on government spending: $shit load
  • Winners: Poo skiers and hungry goannas
  • Lossers: Australia and diabetic goannas