@10:00. Easiest political sell in the world is macro=micro; a country runs like a business or household. "I was the CEO of Air New Zealand, therefore I will run the country like a prudent business" & instantly crashes the economy. Endlessly repeated since Henry Morgenthau under Truman crashed Hoover's New Deal in 1937.
Abolition of 'economics history' from B.Sc. courses was almost certainly done to hide this empirical fact that runs counter to the cult of neoliberalism.
Here are a few simple economics questions that Jonathon might consider.
Why do banks advertise an interest rate of 6% when they really charge 12%?
Why do governments not advertise that they introduce new money into the economy so that it is easy for rich people and impossible for the poor?
Why don't governments introduce new money into the system by asking communities to spend the new money building assets that earn money for everyone directly instead of the current system of taxing incomes and profits and redistributing money to people?
Why don't governments allow citizen customers to invest directly in public assets?
Why do companies keep all the profits for shareholders and not give any to customers who paid extra money to make the profits?
Why does the Reserve Bank "fight inflation" by inflating the price of money?
Why do we have Capital Markets where we buy and sell money when money costs nothing to produce?
Why do we have insurance when we could simply put money into people's bank accounts when "an act of god" destroyed assets?
Why do we allow the banks to give loans to buy existing assets when we can easily transfer assets month by month and don't pay interest but pay rent on the part of the house we do not yet own?
To read more look at this submission to the ACT government on making Canberra an Age-Friendly city.
Government efficiency should be looked at case by case, agreed, but extra skepticism is needed to avoid self-perpetuating protected bureaucracy, even in boring repetitive areas, where there is no p&l or bankruptcy discipline. Eg My limited observation is that BCC parks service is highly efficient, partly and maybe largely now by effective management of contractors, but based on a strong historical culture, while the roads dept is a productivity black hole with a poor culture of protected council employees which I resent as a ratepayer after seeing them take months resurfacing about 100m of our street.
At the other end we’ve got the worst of both worlds eg NDIS, which seemed like a good idea to both main parties at the time but has been comprehensively cocked up from pretty much any political POV. Government clearly trying to do too much overall, spreading increasing resources ie tax take and talent too thinly. I hope Konrad can keep up his balanced fact-based approach while trying to make money on social media!
@10:00. Easiest political sell in the world is macro=micro; a country runs like a business or household. "I was the CEO of Air New Zealand, therefore I will run the country like a prudent business" & instantly crashes the economy. Endlessly repeated since Henry Morgenthau under Truman crashed Hoover's New Deal in 1937.
Abolition of 'economics history' from B.Sc. courses was almost certainly done to hide this empirical fact that runs counter to the cult of neoliberalism.
Still waiting for the answer to Cam’s question about “Who’s on your list of good faith experts worth listening to?”!
Great interview. Thanks.
Here are a few simple economics questions that Jonathon might consider.
Why do banks advertise an interest rate of 6% when they really charge 12%?
Why do governments not advertise that they introduce new money into the economy so that it is easy for rich people and impossible for the poor?
Why don't governments introduce new money into the system by asking communities to spend the new money building assets that earn money for everyone directly instead of the current system of taxing incomes and profits and redistributing money to people?
Why don't governments allow citizen customers to invest directly in public assets?
Why do companies keep all the profits for shareholders and not give any to customers who paid extra money to make the profits?
Why does the Reserve Bank "fight inflation" by inflating the price of money?
Why do we have Capital Markets where we buy and sell money when money costs nothing to produce?
Why do we have insurance when we could simply put money into people's bank accounts when "an act of god" destroyed assets?
Why do we allow the banks to give loans to buy existing assets when we can easily transfer assets month by month and don't pay interest but pay rent on the part of the house we do not yet own?
To read more look at this submission to the ACT government on making Canberra an Age-Friendly city.
https://open.substack.com/pub/kevincbr/p/financing-an-age-friendly-city-by
Government efficiency should be looked at case by case, agreed, but extra skepticism is needed to avoid self-perpetuating protected bureaucracy, even in boring repetitive areas, where there is no p&l or bankruptcy discipline. Eg My limited observation is that BCC parks service is highly efficient, partly and maybe largely now by effective management of contractors, but based on a strong historical culture, while the roads dept is a productivity black hole with a poor culture of protected council employees which I resent as a ratepayer after seeing them take months resurfacing about 100m of our street.
At the other end we’ve got the worst of both worlds eg NDIS, which seemed like a good idea to both main parties at the time but has been comprehensively cocked up from pretty much any political POV. Government clearly trying to do too much overall, spreading increasing resources ie tax take and talent too thinly. I hope Konrad can keep up his balanced fact-based approach while trying to make money on social media!