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Archive for August 2011

Amid economic turmoil, introducing a carbon tax is ridiculous

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As panic selling gripped Australia’s stockmarket in recent weeks and our superannuation accounts tumbled again, I left the analysis for those more learned in such things.

But, enough is enough.  The fact that Australia may be entering a second Global Financial Crisis  – this time with the dead weight of a carbon tax holding us down, is sheer  stupidity, obvious to all.

As respected writer, Gerard Henderson, commented “now, more than ever, tax and red tape” are an economic deathtrap”.

Writing in the National Times, Henderson pointed out that, if there was a second wave of the global financial crisis, Australia would be tackling it as one of the few nations in the world with a carbon tax — out there largely on its own for a country with a reliance on natural resources and only a small manufacturing base.

He highlights that our main competitors in the resources area such as Canada, Brazil, Russia and South Africa – not to mention the USA – do not have nationwide carbon tax or emissions trading schemes.  Of course, it’s long been the bleedin obvious that the introduction of a carbon tax here would disadvantage Australia in competing with our major competitors.

Noted economist, Terry McCann, said that, to escape an economic crunch, Australia would need to rely on China continuing to boom.

If the economic crisis remained mild, McCann believes China would ride it through – and Australia could follow suit.

“But I’d suggest it would be impossible for China to not be dragged into, and to some extent, under, by a serious global financial meltdown.”

If McCann is correct on that last point, then the Gillard government is being handed a perfect excuse to offload the highly unpopular carbon tax and trading schemes.

Of course, the irony is that, should Australia escape the worst of the economic collapse, it can thank coal and other resources exports to China — all of which will be financially hit by an amateurish carbon tax from an out-of-touch government.

If it doesn’t escape the market meltdown, Henderson notes that Gillard is again caught by her own words : the government’s commitment to put the budget into surplus, if implemented, would rule out another large stimulus package.

Well done so-call Independent politicians, Tony Windsor and Rob Oakeshott, for getting the country in this fine mess. No wonder you’re less popular than the late but not lamented Osama Bin Laden.

 


 

 

 

 

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Written by ianandsue

August 9, 2011 at 1:05 am

Posted in Uncategorized