The John Hyde Archives
Historic archive of articles and newspaper columns written by former Australian politician John Hyde OAM.
1984
Large Colour TV Sets
Protectionism Competition Cronyism
- The Australian TV production industry taxes buyers and have developed into an uncompetitive assembler of foreign produced parts.
The Eternal Nanny
- Society gravitates towards the least regulated activities
- Even our bodies have become the property of the state.
- Governments offer us a security blanket that is useless and prevents us from developing survival skills.
Entrepreneurs
Economics Regulation Cronyism Business
- Entrepreneurs are first forwards looking decision makers, but often become crony business managers once estabilished.
Thomas Sowell & Walter Williams
- Sowell & Williams argue that racism, discrimination & poverty are minimised where markets are the freest and are worsened by government intervention.
- Affirmative action has created an action not to hire groups.
- Sowell has insisted that he has faith not in the market but rather the evidence about the market.
Who's a liberal?
- Traditional young liberal concern for human rights, environment and discrimination is in good hands.
- The spread of income level is narrowest in societies which are the freest and the disadvantaged the least oppressed where privilege is not maintained by law.
Taxes and Economic Growth
- High taxes are hostile to economic growth and hence to higher living standards.
- Link between high taxes and lower productivity, lower private consumption and lower life expectancies.
Measuring Education
- Both labour and liberal party members send their children to private schools due to teachers moving to private schools. Government schools perform the worst compared to catholic and private schools.
Hawke On Structural Adjustment
- There's a trade-off between today's protected industries and tomorrow's living standards.
- Mr Hawke, "we need a longer-range vision".
Uncooperative Federalism
- States that want more powers should be prepared to finance themselves.
- Competition between states to offer the lowest taxes or the best services is a good thing.
The Next Deficit
- With each succeeding deficit, either interest rates or lost opportunities will be higher.
- Easier for politicians to increase government spending rather than to decrease it.
Greiner's Small Business Policy
Regulation Industrial Relations
- The policy allows for an individual to negotiate employment conditions above the minimum requirements.
- Allows for the NSW industry to gain a competitive edge over other states and foreign imports.
The W.A. Sheep Meat Industry
- The Lamb Board shows the consequence of instituting a government-controlled monopoly versus a free market.
- Both consumer and producers have been prejudiced.
Aboriginal Land Rights
- Australian governments have granted special rights to various classes of peoples.
- The nature of lands right in the NT has caused uncertainty and the government is probably harder to deal with than Indigenous Australians.
The Problem with Big Government
- Smaller government where the people have more discretion.
- The problem with regulations is the enforcement and the more rules the less productive a society will be.
- Government doesn't know the wants of the people and the market is better place to punish any "rule-breakers"
Tax No 1
- The enforcement of taxation is inefficient and has become a vehicle for political favours.
- Consumption and capital gains taxes will fill the void if there is a reduction in personal income taxes.
Tax No 2
- A progressive tax should be a combination of company, income & sales taxes.
- Majority of revenue is coming from income taxes, a tax threshold should be allowed for smaller incomes.
- Too much reliance on any one category causes the marginal revenue to drop as there will be less persons or companies to tax.
Tax No 3
- A new capital gains tax where it taxes only real gains and allowing real losses would improve equity and economic neutrality but would be extremely difficult to administer
- An improvement would be to have a broad-based consumption tax through taxation of an approximation of real capital gains and removing special privileges from the income tax act
Of Bread and Eggs
- Regulation governing the production of eggs & bread in QLD is destroying the profitability of both products.
Exporters Pay for Tariffs
- Tariffs raise prices in the import competing industries over and above the extent that the wages rise for the rest of the economy.
- Protectionism impoverishes exporters rather than penalising foreign competitors.
Labour's style
Politics Industrial Relations Economics Business
- Bob Hawke ceded authority to those whom should not have authority.
- He expected big business to follow the government's lead on when and where to invest.
- His government is a corporatist consensus of government, big capital and big union.
The Opposition Industrial Relations Policy
- Few unionists understand that they are the prime cause of unemployment.
- An opportunity should be given to both employees/employers to be able to opt out of an award.
Changing Australia
- Collectivism preference installed in the Australian Christian Church with a removal of personal moral responsibility.
- Governments should not be imposing their will on the distribution of wealth and getting the Church involved.
The Grass Roots Against Deficits
- State Premiers demand increased Federal grants but called for smaller government & lower taxes
- In the US, grass roots opinion is going towards the direction of limiting the growth of government and to impose a budget balance.
Coastal Shipping
- Protection of the Shipping & Steel Industries have knock on effects on other industries.
- A government decision to protect an industry destroys another/others.
Occam's Razor
Taxation Subsidies Politics Economics
- It is remarkable that socialists think that the free world's financial system to blame for third world poverty.
- There is no obligation for a liberal society to tax itself to subsidise conversation & peace movements.
Early Retirement from the Public Service
- Basic economics where subsidies create more demand.
- Abuse of provision of medical certificates for civil servants who retire on medical grounds.
Handling the Vested Interests - The Dries
- Governments that are strong enough to deal with powerful vested interests are themselves dangerous.
- Politicians are followers; people don't like those that prejudice the community interest.
- Processes ought to be as transparent as possible.
Means Tests
- 3 positions for welfare funded by tax levels
- A pension reduces an incentive to save; high taxes reduced capacity to save
- Irresponsible to discuss universal welfare before eliminating the budget deficit
Tax Payers United
- Narrow interest groups cost their demands by setting aside similar/identical claims made by other groups and ignore the flow on effect.
- Conspiracy to perpetuate the myth of the budgetary free lunch.
- Reduced tax and reduced expenditure must go hand in hand.
Productivity & Living Standard
- Australian productivity has not kept up with living standards from 1969 in a 13-year period.
- Consumption has outstripped production; investment per head has declined.
International Comparisons
- Comparison of Australia's economic performance with other nations
- Slower growth rate compared to the UK (Study of a group of developed nations)
- Even with our resources (Aus. & NZ), our living standards have fallen behind resource poor countries of Western Europe
- With our lower economic performance, there might be a labour and skill migration of Australian to other countries.
Building Industry Superannuation
Superannuation Industrial Relations
- Inelastic demand in the construction industry; ability to pass on increased costs to others.
- Union Superannuation is a tax on union members as they get a percentage of their members contributions.
- The revenue will give them the ability to further industrial or political action and further their careers.
Of Paddington Bear and Medicare
- Regulation as a means of control
- Uneven enforcement
- Confusing legislation, that is, it is hard to adhere to the regulations.
Colour TV
- Import quotas for Colour TVs; prices should be allowed to signal the levels of supply and demand
- Quantitative restrictions (QR) are licences to print money
John Stone and all that
- Review of John Stone's lecture.
- Weakening of Australia to face the world market.
- Government gains monopoly of information.
Grain Handling
Protectionism Trade Regulation
- Wheat board (Trade barriers).
- Farmer are unable to price differentiate between higher quality of wheel produced (price takers not setters).
- Cost of over regulation where both some producers and consumers are the biggest losers.
Health Care 3: Medicare
Monopoly Regulation Competition
- Medical fraud by doctors in a statutory monopoly
- Firing a doctor removes his/her service from the community
- The best is no Medicare; the market decides
- * But what about a naturally formed cartel?
Youth Employment
- Employers will choose employees that can provide the most for each dollar spent on them.
- Sen Chaney was concerned about income inequality and alienation.
Japan's Ministry (MITI)
Economics Business Industrial Relations
- Japanese Government assisted in economic growth by restraining itself from interfering with the economy.
- Japan's industrial policies are the best because the government interference is the least.
Rich Land, Poor Land
- Those that followed economic wisdom the closest increased their people's standard of living the most. (Ghana v Taiwan)
MTIA, Wages & Protection
- MTIA has been significantly responsible for the 1981 wage hike which has caused the high wages that they are complaining about.
- No monopoly is prefect. If the price of any commodity is raised, some other similar product will take its place.
- Due to comparative wage flow-on, other industries are also facing pressures to increase employment costs when they would otherwise not have to.
The MIN Report
- Exporters have difficulties of low international prices and high Australian costs.
- The source of the troubles is bad government instead of bad markets.
- Mining companies are being loaded with infrastructural costs which are not asked of other competing sectors of the economy.
Advertising
- Tax funded advertising is the usage of taxes to subsidies one set of ideas against another.
- John doesn't believe that the public supports making judgements on standards such as tobacco and alcohol advertising and homosexuality.
- The Government's responsibility is to increase competition for claims about products and ideas.
Brookings on Deficits
Budget Monetary Policy Fiscal Policy Economics
- Aside from printing money, a govt deficit must be financed by bidding for the same funds that private investors seek.
- Brookings' objection to a high budget deficit is that it will reduce economic growth by increasing consumption at the expense of investment.
- Deficits allow govts to spend money that is not raised in taxes.
The OECD & Youth Employment
- The Australian Bureau of Labour Market Research (BLMR) states that youth employment was adversely affected by increase in relative youth wages in the 1970s.
- There is a substantial barrier to downward flexibility.
- Any further employment gains by youths are the expense of adult employees.
Whither the Liberals
- There are three philosophical positions: 1) The Dries (Free market advocates), 2) The Wets (Keynesian Big Govt advocates) and 3) The Uglies (preservers of status quo).
- Due to the people seeing political corruption, a demagogue may just get enough support by posing as a Dry or Wet to turn the Opposition's philosophy away from a more open, free and personally responsible position.
Kasper's Schumpeter Lecture
- He opposes Keynesian theory that productivity is unchanging. His theory is that capitalism improves productivity through entrepreneurs.
- Every fifty years or so, the world goes through burst of innovation that is concentrated in certain areas.
Future Cost of Superannuation
- The case against budget deficits has several arguments. One argument is that it is unfair that future debts are paid by our children.
- Today's governments are making commitments to their employees which future governments are unable to fulfil without raising taxes. Future governments faced with this issue will find a way to welsh on their predecessors' promises.
Peacock's Shadows
- Only when a politician is in power, can he or she stay true to an ideal.
NSW Egg Corporation
- Even though the NSW Egg board has been mandated to be efficient, it can never be truly efficient as it is a monopoly.
Floating the Dollar
- By floating the Australian dollar, Both Paul Keating and John Howard supported this move as it places Australia in a winning position.
Their Own Worst Enemies
- Private ownership is where the citizen gains protection from the state and it not only an economic question but also moral and ethical questions. It should not get into bed with government.
The Incomes Accord
- The Labour Party's policies have caused an inflexible labour market and have prevented workers from negotiating a job. This has caused a drop-in employment for a long time to come.
Football
Industrial Relations Subsidies
- The defence of subsidising the rich is everybody get their share and therefore the process is fare. It is both futile and unfair.
Wheat Marketing
- Our wheat handling and marketing system does not allow for diversity and hides the true cost of wheat production.
Nanny's Security Blanket
- The government uses our taxes to "educate" us with the government subsidising certain groups to tax payers for their mistake and imposing their will on what we can and cannot do.
The ACER Findings
- Comparing present practices in private and public schools is the best way to inform parents on the effectiveness of sending their children to the school of their choice.
Entrepreneurs
Economics Protectionism Business
- The switching of commercial to political entrepreneurship, established interests have encourage governments to protect their interests as well as causing the economies to stagnate.
The Lamb Board
- The Lamb Board prefers its own interest to that of the farmers. In fact, since 1980, the board has prejudiced both growers and consumers.
Sources of Inflation
- When one sector has the capacity to expand its prices faster than an average determined by money supply, the other sectors are squeezed.
Axing the Quangos
- Every regulation develops vested interests who defend it against any attempts to eliminate or reduce it. For example, if the state government were to deregulate the taxi industry, consumers would benefit from cheaper and more convenient travel.
Taxation
- Income tax law reflects government extravagance and years of successful lobbying by vested interests. If the Labour government were serious about tax avoidance, it would start by cleaning up the income tax act which favours the more powerful vested interests and best organised voters.
Exporters Pay for Tariffs
- Protectionism is the act of taking money from one party to pay another and rarely punishes foreign competition and punishes any local party involves in the export sector.
The X-Rating and Victimless Crimes
- The most illogical reason for banning X-rated videotapes that is it presumed that the actors are being exploited. To treat women as though they could not give consent is the ultimate sexual discrimination.
Coastal Shipping
- Costal shipping has been protected for longer than any other major Australian industry but has never been the subject of an inquiry. As a result, costal shipping is affecting industries that have to ship locally.
Civil Service Retirement
- To control costs, the government will be forced to increase wait times for medical treatment. The best treatment will either be for those that can pay for it or those that can pull strings.
The Argyle Diamond Float
- The government did not make a profit when it sold its shares in the Argyle Diamond venture. The taxpayers were the ones that subsidised the purchase of shares and enabled tax avoidance by guaranteeing investors a fixed return.
Greenies, Peaceniks and All That
- We should never attempt to silence views that are different from ours. A liberal society however, is under no obligation to tax itself to subsidise peace and conservation movements.
Of Paddington Bear and Medicare
- By using the law without any overview to punish doctors for procedural errors that are hard to get correct, it causes the principle of certainty before the law.
John Stone and All That
- John Stone's Lecture, 1929 and All That outlined his outrage against effects of vested interests and protectionism on Australia.
Grain Handling
- Australian wheat farmers used to be among the world's efficient. However, through establishing collective arrangements market and control the wheat market, it has ensured that foreign growers having an advantage over them.
Youth Employment
Industrial Relations Competition
- By preventing youths from competing with adults through laws that deny them gain experience that will assist them in future.
The State Budget
- When government use taxpayers' money, they get future generations of taxpayers into debt and they seldom use the monies as efficiently as the private sector. The government's issue is that it seldom a lack of specialist knowledge and a disregard for the public's opinion.
MITI
- The lesson from the Japanese Ministry of International Trade and Development (MITI) is that where government interference is the least, the industries have done the best.
MIM Annual Report
Business Competition Regulation Taxation
- The mining industry is loaded with infrastructure costs which are not asked of other competing sectors of the Australian economy. In order for MIM share price to increase, there will be a need to reduce high levels of industry protection and reducing state taxes.
Australian And United States Deficit
Budget Economics Fiscal Policy
- Both the US and Australia have penalised investing by spending consuming more and will cause a reduction in productivity and hamper long-term economic growth.
The Election Result
Politics Budget Taxation Economics Fiscal Policy
- The election campaign extracted three promises from Bob Hawke: 1) no tax increases, 2) no increase in government expenditure without economic growth and 3) reduction in the budget deficit.
About
John Hyde OAM is a former Australian politician. He was elected as the member for the Division of Moore in Western Australia for the Liberal Party.
John Hyde OAM is the author of Dry: In Defence of Economic Freedom.