Went to see the vampires this morning to take some claret for divining, wonderful how our medical class can perform, improve and supply services that help us live longer. Thank God we are still 1st World.
Brain functioning well and as the electrons moved those thought processes about, I ventured into the future and how our Markets may fair going forward.
The thing to remember is that the current Chinese Virus is not the first pandemic to visit our shores, the first was smallpox in 1789, a year after 26/1/1788 when Governor Phillip set up Sydney Town and other Colonies, and there have been many more since then.
The biggest difference between historic pandemic and the current one is the influence of Government on the lives of all Australians. Sure there have been shut downs (pubs, cinemas, schools, churches, race meetings, agricultural shows and celebratory events for example in 1919) across all pandemics in Australia, how this one (Chinese Virus or Covid-19, standing for Corona Virus Disease of 2019) differs is the amount of cash being splashed about by Federal and State Governments.
Unprecedented is the word that comes to mind, this creates unique reactions and possibilities for our economy going forward.
A lot of businesses will not prevail the length of shut down, most of these will be employee based enterprises and Corporations, sole traders using casual labour will have the most success at start up.
Given the urgent need to get jobseekers and jobkeepers back to work to start to generate the taxes our un-elected bureaucrats seem to spend willy-nilly, a new concept of employment will need to be taken as given for the hordes of proles that exist week to week.
Things cannot go on the same, redtape, greentape, anytape will have to reduced to nothing to allow any hope to get things moving. And this should mean we need less bureaucrats, my view is a 10% cut across State and Federal environs over the next 365 days. This is not a hard ask, these employees move around all the time, so just by tightening up the zipper a bit will allow them to leave and then gain employment in the real world, the Market based employment that will be available.
More tax generating enterprises and less tax guzzling bureaucrats will be a double improve to the bottom line.
Along with this minor change to effort, Australia should also expect to see a decrease, albeit slight, in reward for effort. Why may be asked, well, if you reduce the cost of things then the market (proles) will spend more on things. This will have a knock on effect to all other markets, like the worth of real estate, the value of money, the cost of goods, the value of reward for effort. This new market will give rise to new entrepreneurship that will give rise to the bobble to allow it to soar.
By taking off red tape, adjusting markets downwards and upwards, the end result will be increased economic activity so increased revenue so paying off debt can be greater and everyone is happier.
Perhaps tax rates can be decreased, down to 25% to 20%, the GST could be increased to 15%, whatever to increase economic activity which is how a free market place can thrive.
None of this will be easy but then extreme measures mean that extreme answers have to be taken. Our economy through the markets will take off and provide excitement and hope and adventure for the future.
Whatever to remove some of the vampires that add nought but a cost to the market.
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