Chalmers Proves Labor Government’s Dangerous Ignorance

In the Financial Review (9 July, 2023) we saw the Treasurer, Jim Chalmers and the Labor Government are relying on the notion that “the slowing economy and increased competition should force businesses to absorb the cost of higher wages into lower profit margins.”

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This kind of thinking is our greatest existential threat; forget climate change!

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It is decades out of date economic theory and highlights the total ignorance of the dynamics of commercial markets on the part of Chalmers, the Labor Cabinet and Treasury bureaucrats, whose collective commercial market experience can be measured in days, and is drawn from their childhood.

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For the last 30 years through mergers and takeovers, markets which were once highly competitive, have become controlled by oligopolies whose executive leaderships have a collective understanding to pass on costs, maintain and preferably increase profits in spite of declining demand. In one sense they can be forgiven for their ignorance; the Boards and the major accounting/law firms serving them would be no better informed in most instances.

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Not only do these commercially ignorant hard Left politicians and bureaucrats have no meaningful corporate experience of today’s markets, they are apparently completely detached from the reality under which most Australians are living.

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Did they not see that in spite of massive shortages through COVID and its immediate aftermath, inflation and corporate profits galloped ahead?

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They have no idea. The lunatics really are running the asylum.

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As long as governments of both political persuasions are dominated and influenced by those who have spent their lives spending the wealth created by others, the West’s economic deterioration will not only continue, but will gain pace.

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Until government is populated and driven by a majority of those with the understanding of wealth creation, driven by careers of having created and produced the goods and services consumers want to purchase in competitive markets, savage economic depression will be unavoidable.

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The current collection running our country of political party and union operatives, journalists/media advisors, academics, lawyers and bureaucrats, none of whom have ever managed a large organization in a competitive market, has given us an economy of regulatory infrastructure and dynamics designed to fail.

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The impact of union controlled, huge superannuation funds on corporate Boards has only magnified the problem, effectively silencing the voice of the once domestically-based productive industries which had at best, only been a whisper for decades.

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One cannot be surprised at this group going woke as the Left has taken over their Board Rooms. Given these fake representatives of industry have come from the ranks of the major accounting and law firms so dependent on government consulting contracts, their silence and compliance with the edicts of the Left were never in doubt. ????