12.3 C
Byron Shire
October 17, 2021

Fraudulent theory

Latest News

Let’s get real

AFL Aussie Rules Grand Final in Western Australia... Rugby League Grand Final in Queensland... Melbourne Cup in Tasmania?    Margaret Keating,...

Other News

Lismore Councillors vote to seek urgent changes to the NSW Government roadmap to reopening

Residents in regional areas and local government area representatives, are already straining under what appears to be the Sydney centricity of the NSW Roadmap

Cartoon of the week – 13 October, 2021

The Echo loves your letters and is proud to provide a community forum on the issues that matter most to our readers and the people of the NSW north coast.

Gold Coast woman charged over fake COVID medical exemptions

A Gold Coast woman has been charged by Queensland Police for allegedly pretending to be a doctor and issuing...

Fence sitter

Fence sitters, when given a tickle, will generally tumble off on the side of self-interest. So it’s interesting to...

Tweed Mayor tries for 180 short term holiday letting limit

At the Tweed Shire Council (TSC) meeting (October 7) a late Mayoral Minute by Tweed Shire Mayor Chris Cherry...

Girl Guides launch Child Safe Child Friendly Framework

It’s International Day of the Girl Child and Girl Guides Australia are taking the opportunity to launch their Child Safe Child Friendly Framework.

The federal budget is based on the trickle-down theory of economics – whereby the rich are stimulated by tax cuts and other concessions in the hope that they will increase spending and thus ultimately advantage those less well off. It is a theory that has probably been around for a long time but was given added impetus during the Thatcher/Reagan era.

That it is a totally self-serving and fraudulent theory can be seen by the fact that the gulf between rich and poor has widened throughout the world, in all societies, since that time and this despite the rise of the middle classes in places like India and China.

Thatcher also came up with the ludicrous theory that national economies should operate like household economies and not spend more than they earn. This is nonsense. Government is a business like any other and all businesses depend on borrowing to exist and advance. This model is no longer even true of household economies that nowadays couldn’t exist without mortgages, credit cards and hire purchase for items like vehicles and businesses, and banks are totally dependent on this form of household debt.

The budget is largely ideologically rather than economically driven. Cutting people under 30 off the dole makes no sense whatsoever in terms of the greater economy. It means much less money circulating. It doesn’t advantage those with rental properties if fewer people can afford to rent them; the same with sellers of basic items like food and clothes.

It also completely ignores the fact that government benefits not only support the poor and unemployed but also underpin the security of middle-class existence.

Desperate people often need to take desperate measures to survive. Expect a rise in violence, robbery, depression, suicide and mental breakdown, more and cheaper drugs circulating in society, more and cheaper prostitution and higher insurance rates – dealing with all of which will cost a lot more than the money supposedly saved by withholding benefits, quite apart from the potential societal disruption.

The cry that the government is trying to prevent future generations from inheriting an enormous burden of debt is also completely untrue. If the world economy continues as it has in the pattern of the last couple of hundred years, inflation will sop up that debt and by the time the current crop of school kids become taxpayers the amounts owing will be negligible.

David Gilet, Byron Bay

 


Support The Echo

Keeping the community together and the community voice loud and clear is what The Echo is about. More than ever we need your help to keep this voice alive and thriving in the community.

Like all businesses we are struggling to keep food on the table of all our local and hard working journalists, artists, sales, delivery and drudges who keep the news coming out to you both in the newspaper and online. If you can spare a few dollars a week – or maybe more – we would appreciate all the support you are able to give to keep the voice of independent, local journalism alive.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Mandatory vax

I write to you in response to the article on the front page of The Echo relating to mandatory vax. I find it extremely...

End the cult

A military conflict between China and the USA would very likely result in global nuclear war, a major setback to human civilisation and possibly...

Hundreds queue to have COVID test and two new cases in the NNSWLHD

Northern NSW Local Health District (NNSWLHD) is urging people to continue coming forward for testing and vaccination after two further COVID-19 cases were reported in the 24 hours to 8pm last night, October 14. 

Charges after cars damaged in police pursuit – Coffs Harbour

Police say a man has been charged following a pursuit, where a number of cars – including an unmarked police car – were sideswiped on the Mid-North Coast yesterday.