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PRIVATE ENTERPRISE

Talk given November 8, 2011 to Port Phillip Probus

Full copy available as downloadable PDF

Downloadable from the above link is the talk I gave today to an audience of over 100 at Port Phillip Probus, whose members come from a wide range of suburbs. It includes a good deal of what you have previously seen from earlier talks I have given on the subject of private enterprise. However, I have outlined the downwards revisions to economic forecasts and added comments on the appalling failure of the G20 to recognise that the focus on policies to improve growth and financial stability should not be on creating increased access to financial resources (such as via the IMF) but on policies that encourage risk taking in the private sector and reduce government intervention.

As on the occasion of my previous talk, the topic seemed to engender what was (to me) surprisingly extensive interest, now confirming my previously expressed belief that not enough is being done by our political leaders to remind people of the virtues of private enterprise and the desirability of reducing government intervention in the economy and society generally.

The questioning period, which ran for about 25 minutes, covered a range of issues. Again surprisingly, none were critical of my claims. Of interest were the following:

• The Qantas incident, on which I expanded my criticisms of the FWA and the increase in union power, and added praise on Joyce’s performance;
• Climate change, on which I pointed to the many absurdities including the virtual impossibility of obtaining an international agreement when developing countries (which currently account for 60 per cent – and rising -of emissions) will obviously not agree to reduce their emissions (although they may “pledge” – the new way of saying I will try - to do so);
• Greece, on which I suggested that a default on debt (which has already effectively occurred) would in itself have little impact on Australia but that the basic problem was the flawed fundamental structure of the EU. I referred to the graph I had already circulated showing the enormous difference as between EU countries in the increase in labour costs since the EU started (with Italy and Greece being high and Germany low) as illustrative of the economic impossibility of having a common exchange rate in circumstances where there are many basic differences as between countries in policies and behaviour. This meant that the almost certain eventual break-up of the EU could have adverse economic effects for Australia.
• On manufacturing and the loss of/reduction in manufacturing sectors (the questioner had been a producer of shoes), I repeated what I had already said, viz that the continued relative decline in manufacturing is inevitable not only in Australia but in other developed countries. I noted, however, that the promising outlook for the agricultural sector (which had over the last 50 years effected substantial improvements in productivity).

Des Moore

Full copy available as downloadable PDF

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