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Shakey Bones

My Plan To Fix Australia

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Ok so first of all I'm not an economist or accountant. But it doesn't take an expert to see Australia is heading down a dangerous and uncompetitive path with government deficits and over taxation to funds these deficits. Essential services are being cut Australia wide and Australians are working harder and longer but with less purchasing power than ever before. One only needs to look at our various taxes and our high cost of living to see that.

 

So I have thought about this little (not into too much depth) on how I would get Australia not only back into the black but also set up a standard of living for every Australian very high with giving every Australian the freedom and time to do what they want.

 

IMO our biggest resource we are squandering. Our government is fighting over mining tax or carbon tax or what ever the hell it might be at the time in a effort to get the scraps or the left overs from our Mining boom. Then they tax the living shit out of the workers just to get a little more.

 

Feel free to rip my plan to shreds, it isn't in too much detail just a broad outline. Keep in mind the end goal is to make Australians all comfortable enough that we can chose to work or not, and have real choice on how we work.

 

Step 1. Nationalise The Mines.

Just like in the middle east we need to bring back our greatest asset which is our natural resources back to the public domain. So we all can benefit from it. Now considering so many American, British and European corporations own large parcels of our land along with our own Australian corporations we need to look into what options we have to buy back our land and put it into the governments hands. Failing that I propose a 99.99% mining tax. Where almost all mining proceeds are taxed. Eventually all the corporations that had their chance to sell their mine back to the Australian government will go broke, shut down and abandon the mines. Eventually, provided I'm not lobbied and voted out at the next election the mines will be back in public hands.

 

Step 2. Profit from the Mines.

Gold, Coal, Iron Ore, LNG, Oil you name it we have it. Set up government corporations owned entirely by the government (and the Australian people) to own and operate the mines. Have the SAME people running the projects that we do now. Head hunt the ones left over. No one is losing their job they are just simply working for a different corporation.

Make all salaries from Mining jobs Tax free. For more remedial work bring in Indian and Asian workforce and camp them out in the desert. Pay them f**k all (like they did in Dubai) but good compared to what they have at home. This will cut running costs massively. Hell pay the remaining Australian local operators even more.

 

Step 3. Invest Profits

One only needs to look at the profits of BHP and the personal wealth of Gina Rinehart and Clive Palmer too see after a short while things will be running along smoothly(ish) These corporations however won't, But hey that's capitalism. Now that the federal government is receiving BILLIONS if not Trillions of more dollars without taxing Australians or increasing the cost of living it is time to invest our profits.

 

After some short term fix ups like helping a bit in health care etc. Start a new Government Bank to compete with the big major 4 banks. Because as well all know aside from Mining companies Banks make a f**king killing too. Offer competitive rates and packages to the big 4 but dont squeeze them out of the market, just shake up the market. This will help everyone with home loans, personal loans and banking and make our Banking sector ultra competitive. Benefit = End Consumer - YOU.

 

However it won't be long until our own Kangaroo Government Bank is making Billion dollar quarterly profits like the CBA, ANZ, National or Westpac. Keep in mind just like the mines, our government bank isnt run by Government type people. We will employ the world best business people and bankers to run it for us. Just like a privately owned bank would.

 

Step 4. Everyone benefit.

So now the Australian government is running its own mines and has its own profitable bank. The next step is to buy back public infrastructure. Buying back our Ports, Our Rail ways, Our roads, Our Power Companies etc. This will also help with the bottom line.

 

With these funds I would look at either removing the personal federal Income tax altogether. Like they have in oil rich nations. Increase GST to perhaps 20% (everyone should pay tax) and look at lowering corporate tax to 20%. Get rid of stamp duty and payroll tax.

 

Have a serious look at what other taxes we now no longer need or where we can cut back.

 

This over night will bring the cost of living down and make Australian businesses way more competitive on a world scale.

 

 

Step 5. Fix Shit

Pump our new found funds into health care providing for all old people, build state of the art housing for the aging (built by our new found cheap labor).

 

Free Schooling for everyone, Government payed Tafe and University. Allow young people no matter who they are to become what they really want. Not just another white collar slave shackled in student loans. All the way to a PHD level with no time or cost cap. If it takes a while for someone to find their passion then so be it. This is all about giving all Australians the ability to truly find out who they want to be and what they want to know.

 

Step 6. Prosper.

With low taxes, fantastic education and a state of the art healthcare industry Australia will grow and attract some of the world smartest and brightest. And perhaps lazy too, but that is ok. The point is people have a real choice how they live their lives.

The smart ones will prosper and innovate. We can build a cost is no option internet network and build our own 'Silicon Valley'. Build and develop our own Hollywood and entertainment scene.

 

Big international production companies will love Australia's natural environment and our new found low costs and low cost of living.

 

 

Really at this stage your mind is your own limitation. The government is sorted out running at a surplus without taxing the hell out of you or your business. You now have the education to really do something that inspires you not just have to get a job to pay the bills. Or an easy going country where if you don't want to you don't have to.

 

END GAME:

We will have the cheap workforce to do our most menial jobs, or Australians can do them to. And instead of being disposable bar tenders, mechanics or check out chicks Australians can spend their time painting, working and developing the performing arts, building an amazing tech sector, designing some of the worlds greatest architecture, get on the forefront of the medical field and make a difference in the world, develop green clean energies that will benefit the world more so than any emissions trading scheme EVER could. The world would really be your oyster. Or you can just chill on the beach and do yoga knowing full well social welfare is still there only it is funded by our resources and businesses not Yours and Mine tax dollars. All guilt free just like someone would enjoy passive income from a business or investment property.

 

Ok so that is my Socialist Capitalist plan on how to fix Australia. We Nationalise what the government should own then get the f**k out of the way of business in areas it should have little to do with.

 

 

I understand that this plan doesn't address somethings namely inflation and wont prices go higher if everyone has more money. Well lower taxation and the government getting out of the way of business hopefully will make for a proper competitive business environment where prices are even more competitive and the cost of doing business is lower so lower prices can be enjoyed by all.

Edited by Shakey Bones

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why aren't you a politician?

 

Probably because I'm not corrupt enough.

 

I just don't see why a guy like Clive Palmer can spend billions building a f**king Titanic with Mining money, when those same funds could be spent here on Hospitals, Schools, Roads or giving tax breaks to small business.

 

Australia has been given a MASSIVE gift out of total chance and IMO we are squandering it like an able bodied person who shoots up Heroin everyday.

 

Could anyone imagine what our personal taxes would be like if we had the natural resources of say Singapore? Australia is one of the world wealthiest countries resource wise and we are giving all the profits aways to the British, Americans, European and a select few in Australia. There is no reason why every man woman and child shouldn't live in absolute prosperity like they do in Dubai or Saudi Arabia (of course without all that religious oppression).

 

Ferraris for everyone!!

Edited by Shakey Bones

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very true.. common sense just needs to be applied. The pity is, it's not so common these days

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All for shakey for priminister say I

  • Upvote 2

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I like it.

We are Australian

We have the resources

We are not benefiting.

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I was thinking the exact same thing not a few weeks ago, here is to expand my idea's on a few points.

 

HEALTHCARE:

 

We currently have shortages of Nurses and hospital beds, whats new right? with the now billions of dollars the government would making, build and expand our hospitals etc, then make some form of incentive for more people to want to become a nurse. I know quite a few nurses, its a hard job for pretty crappy money. how about minimum 120 to 150k per year pay packet. Make more school leavers want to get into the industry as it provides the best pay, make it highly competative so only the best of the best get in.

 

PRISON/JAIL/CONVICTS:

 

How much money do we waste per year to keep some of this scum locked up for life, repeat offenders, career criminals, alot of it might be about lack of opportunity and education. Then there is the whole issue of how inmates are treated better than our pensioners in aged care facilities.

 

How about if you get sent to prison = automatic military conscription, your a grunt/foot soldier, but its manditory to learn a trade, you do your time in the army, get trained up and get your certificate, you leave with your trade/hopefully some discipline + your forced to serve overseas on a few tours of duty before you have parole, see how bad it is over on the other side of the planent.

 

For repeat offenders of serious crimes after you do your "time" so to speak, no ifs or buts, a bullet in the head. There is no reason to offend again when you have a trade, a job to enter after you leave, income etc.

 

REFUGEES:

 

Same as above, they dont get their own goverment payed homes/ housing commission at all, and no cash benefits to live on. You live in a refugee complex, you are provided food and shelter, you go to school, learn english, these people are the ones doing the medial work like cleaners or pick packers/ working on a assembly line. You learn a proffession and only leave when you have graduated.

 

 

I had more, cant remember at the moment, but more race tracks, definetely more race tracks and drag strips.

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If the rest of the world slows down and stops buying minerals then game over to your plan from stage 1.

 

For people to make money, you have to sell a product or a service - or be a scamming prick (which is okay - business yo). See the UK when they gave away all their engineering/production companies and decided to become "The financial capital of the world" then lost megabucks.

 

Aside from that, the phrase "200 Pharaohs, 6 billion slaves" comes to mind...

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This is one of the funniest things ive read lol

 

Care to elaborate as to why? However I think I know why. I've just been on skype on and off this afternoon debating this very idea. Obviously my friend is a hardcore capitalist and doesn't think the government should own or run anything and should let the private sector sort it all out. He did also keep bringing up Venezuela as their government model is very similar. Here is a good link about how well their nationalisation plan worked. http://globalpublics...uin-an-economy/ However I kept saying Australia is not Venezuela and we aren't going to try and have a political fight with the west like they did. Anyway care to elaborate on what you found so humorous?

 

 

 

To CROS13 as for the nurses more pay is not necessarily the answer. With no income tax their pays will go up what 20%-25% or more already over night. And with the falling cost of living due to low taxes, low barriers of entry for competitive businesses which will result in cheaper products their buying power will go up as well. So without a pay rise you can see already how they are basically getting a pay rise from what they are on now anyway.

 

On prisons I think a stint in the armed forces is a good idea, but we have to becareful not to become a authoritarian type government with a heavy fist like that in other parts of the world. I certainly am not for the death penalty as I think with a higher society comes higher standards. Not to mention the new found prosperity will minimize crime anyway. Perhaps for particularly harsh criminals create a island like Absolom (www.youtube.com/watch?v=oAMXrPiZBwM)

 

refuges - just use them as cheap labor. Like I said we need people to mow our lawns, cook our food and service our cars and work in our mines. Why not give them a new life and society can benefit too.

Edited by Shakey Bones
  • Upvote 1

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Perhaps for particularly harsh criminals create a island like Absolom (www.youtube.com/watch?v=oAMXrPiZBwM)

 

My GOD...... On a completely unrelated topic, i have been searching for that movie for the better part of 10 years, but i could never remember the name to find it, i kept thinking escape from LA, so i downloaded that and was disapointed at that crappy movie starring Kurt Russell! Then Escape from NewYork, again Kurt Russell god dam it.

 

Time to download.... you get all my e reps my friend!

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Government was originally designed to serve the people but just like everything else out there a lot of people are big businessman cutting deals here and there. It's no big secret but perhaps the incumbent nature of business and government and government contracts means that the companies that are "used" to doing business with government do a lot to keep those business lines "open". The biggest example of this in my line of work (but in the united states, not here) is healthcare.gov. Almost 100 million dollars to build. Almost 500 million in lost service to the American people. The whole site was done using existing contractors at sorely inflated prices and lax deliverables. Also, not the best programming houses were employed simply because it was the government and you had to have certain security level to access people's "sensitive" information - which was red tape to keep the existing incumbent developers without external competition. The result? Botched launch. A total of 6 (yes, SIX) people were able to register on healthcare.gov in the first day of launch. You can google it to get the full story.

 

The point of mentioning this is.... yes there are a lot of things done in this country that's inefficient and it's grossly mismanaged. One of my friends works for State Rail. The amount of stuff he gets paid to do for... pretty much just sitting in a room cos he's "on standby" is ridiculous. Another few people I know are in the hospital system. It's just amazing how resources get thrown around.

 

Finally, if you look at NASA (yes, the american space agency) and see the 60-80 million dollar cost of sending up something into space.... coupled with the (now defunct) Space Shuttle program of the last few decades which was initially described as a "reusable" reentry vehicle.... ended up being a 1.6 billion dollar a year waste of f**king time. SpaceX (privately funded company by Elon Musk to cover ISS duties) is making rockets to replace those of NASA..... expenses per flight? Less than 2 million - $200k worth of fuel. COMPARED WITH 80 MILLION. Are you f**king kidding me?

 

Governemnt is NEVER a good way to manage resources. Here's another one: Telstra.

 

What you need is the private sector and you need competition, competition, competition. Check out the United Kingdom's cellular and broadband network. You get 500 gigs ADSL for 8 pounds per month.

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I like the idea of getting rid of the foreign investors but who's to say profits made from mining is better in the hands of govt than it is Australian businesses? What if they just waste it on another shit initiative where some prick exploits a loophole or has his head in the clouds e.g those over priced set top boxes for seniors, school upgrades where the contractors scaled all the building work down and kept the change. Or if some new pointless war breaks out and military funding sucks it all up. There are reasons for and against privatization.

 

And our ageing population, mass of dole bludgers and then the rest who can't find work.. Who's going to fund that if you "lower taxes"? I don't think we're highly taxed to be honest, I think the tax rates help the working class and tax the rich as they should.

 

http://www.ato.gov.au/Individuals/Income%20and%20deductions/How%20much%20income%20tax%20you%20pay/Tax%20rates/

 

And more competition for the banks; sure but when the 4 banks report a loss do you think the senior managers are going to take pay cuts? No, they'll restructure 'eliminate wastage' and drop all the low level peons who are just getting by.

 

I agree there's wastage in alot of industries. There are alot of bullshit positions that look pointless since our economy is in recession and there's alot less to do. But at least these people are doing a little bit rather than sit at home on welfare. There's also a bunch of greedy property owners and middle men in every supply chain driving up the cost of living, I would like to see a govt inquest into who's price gouging and just f**k those *milkshakes* off lol. I grew up with a very capitalist dad and family, I studied commerce and now all I can say is every *milkshake* is in it for himself and its anti-social.

 

I would like to see people educated on their ridiculous consumerist attitudes, dumb spending habits, take them back to basics and stop getting ripped off by sharks. And all this money wasted on pokies, alcohol and other wasteful/destructive shit, just put a stop to it. There are better ways to spend your time and your money but most people don't even stop to think about that. And those that do might find they have nowhere to go.

 

I think until now there has been alot of money floating around and it has given way to the creation of markets and jobs that are no longer going to be supported with so many people out of work and saving their pennies/being broke. And I am glad to see the backside of these businesses that thrived on people's excess spending capacity and gullible nature. Our generation will most likely develop an attitude of those post depression (1930s), and it's entirely possible that we could take a new direction in how our economy works, what's consumed, what jobs exist, what's regulated and so on.

 

But I don't know why you think you're in any position to comment on half of this stuff. If you aren't "thinking too in depth" about it can you imagine that there are people that are? People who have all the facts and have been passionate about economics and politics their whole lives. Why don't you join a toast masters and put your theories to the test with the old boys?

Edited by Spazo

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A few issues, and the worst being the fact that A. If you change the rules, and force the miners out by nationalising, you form a concept called sovereign risk. Being that companies will view the Australian Economy as risky, because if they do well, then they are likely to be taken over by the government, and lose everything. The is currently occurring in Venezuela, and their economy is really hitting the shits. They'll be a basket case or civil war very quickly. (Unofficial exchange rates at 60x higher than the official rates.)

 

And b. The government sucks at running stuff. If the government is in charge, you'll end up with things like Telstra, while they were still a monopoly. The profits will just be pissed up against the wall with layers and layers and layers of red tape and bullshit.

 

This is why the MRRT was a good idea in its original form - make a mint out of our resources - pay extra tax. The company wins, the country wins. Clearly the minors really didnt like it, and subverted it through better politics than the government.

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I didn't read the rest because it seems that most of the "plan" hinges on the "nationalize the mines" bit. This is where the lack of economic experience really kills your plan. :P

 

Nationalizing an industry does not work. In general it doesn't work; in a country like Australia it would work even less. Please understand that I'm not trying to evoke "red fear" or anything like that but basically what you're proposing is communism. A nationalized asset has zero incentive to work. If you place incentives in, you have conflicts of interest between the government employees and the rest of the country. Which mines do you nationalize? What defines a company that mines? What about corporations that undertake mining as only a part of a portfolio of businesses?

 

OK I lied and had a second look at the post... In the second point you recommend paying tax free wages to immigrant workers? So you want to throw away equality of pay, move jobs to foreign hands, etc etc?

 

After your insanely inflationary measures have come into effect; how will that make Australia competitive? We'll be rocketing pay, which will skyrocket demand, which will drive prices up. Then we'll be at the point where EXTREMELY inefficient government employed labor will be demanding high wages, pushing the cost of services AND manufacturing sky-high. The mining export will continue, driving the Australian dollar higher, making the Australian workforce even more internationally noncompetitive.

 

The bottom line is: we live like kings already. Why do we deserve all this nice shit when the majority of people in the world live far, far poorer than us? Why are we so deserving? You think we have a competitive edge? Maybe, but it's fading.

 

Btw don't get me wrong, I hate the unaccounted externalities of big corporation (and the top-heavy pay scale of upper management) just as much as the next guy but nationalization is not the answer. If you want to be financially successful, be efficient and competitive. If you can't provide any service or product; why do you deserve to live like a king?

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Exactly why would you think things would run better if people were government employed? I'm honestly curious. Government employees must be the least productive employees in this country. Especially when it comes to the utilities.

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