Oz Blog News Commentary

Articles from A Senex View

Restoring True Full Employment in Australia

December 5, 2019 - 11:07 -- Admin

“So far as it can humanly contrive, never again will the dole queues be seen in this country. Never again will competent workmen stand idle for months and years while limitless work remains to be done. Never again will young men drift hopelessly from town to town and from State to State, searching for the jobs which, in all this wide land, did not exist for them.”

Ben Chifley, 1949.


Does Money Really Grow on Rich People?

December 3, 2019 - 11:05 -- Admin

In my previous post I outlined why jobs don’t come from rich people: capitalism runs on spending (sales), not savings. Job opportunities appear naturally when businesses forecast sales growth and expand output accordingly (and similarly disappear under reverse conditions). When viewing the economy as a whole, we can observe that private sector investment responds to rising incomes and spending as entrepreneurs expand output to match market demand and banks have confidence lending.

How Many Jobs do the Well-Off Create?

December 2, 2019 - 11:05 -- Admin

One would be forgiven for believing that all good economic outcomes must flow down from the wealthy to the masses, given how much of our tax code has been designed for such an effect. Capital gains tax rates, superannuation tax rates, and negative gearing are just a few of the ways our federal tax system has been tilted to enable the wealthy to accumulate ever more wealth by retaining a high percentage of their financial earnings after taxes. And politicians keep dishing out the favours.

Why You Should Love Government Deficits

November 29, 2019 - 11:04 -- Admin

The calls for cutting the federal government’s budget and perhaps even balancing it have continued and are likely to grow louder during this political season. Don’t listen to them unless you want to see a fall in your net financial assets! Government deficits, by definition, create private sector wealth, while surpluses drain it. It’s simple accounting.