Blogotariat

Oz Blog News Commentary

Articles from Harry Clarke

North East Link

December 5, 2017 - 11:55 -- Admin

The North-East Link Project in Melbourne seeks to connect the Western Distributor with the Eastern Freeway. There is much to this project – including a widening of the already-jammed Eastern Freeway – but the biggest feature of this project is its cost. Namely, $16.5b. Some claim the price could go as high as $21b.

 

The case for enhanced Australian company tax cuts: Modified re-post of an April 2016 post

December 3, 2017 - 19:10 -- Admin

This issue is again on the agenda because of the US decision to massively cut corporate taxes from 35 to 20% of corporate profits.  It is not the same intellectual case as for the US economy but many of the same issues arise.  The growth in the US deficit as a result of these cuts will be large and there are questions about the extent to which investment will increase given the relatively low level of US unemployment.

Advising investors not to believe in active investment strategies

April 23, 2017 - 10:15 -- Admin

Some of the fees charged by local investment advisors, such as local accountants, seem more than hefty. Particularly when investments are in equities. Often there is a fixed fee of around $300 per month or $3600 per year. There is also often a trailing fee of 1% of the value of the portfolio. Thus on a $1m investment with gross earnings of 5% the total annual fees would be $13,600 which, ignoring taxes, would be 25% of the total return.

Social media-induced failures in the market for news information

February 25, 2017 - 15:01 -- Admin

The web and social media, such as FB, comprise an innovation that, in some ways, makes us all worse off. For example, FB undermines the printed media because individuals almost endlessly provide hyperlinks to it, thereby providing an open access alternative to buying the content by, for example, purchasing a newspaper.

Vietnamese civet coffee

February 20, 2017 - 19:51 -- Admin

Vietnam is the second largest coffee exporter but its coffee has a low international reputation and much of it ends up in instant coffee brews.  In fact, there is a substantial coffee culture in Vietnam with (non-alcohol serving) coffee shops operating everywhere (I made the unspeakably bad error of judgment of asking for a beer in one – I got it though the owner had to raid her husband’s supplies!).