Yeah I'm waiting for that to land in Sturt, it seems like the perfect place for a moderate potentially right leaning independent to do well in, especially if they can somewhat align with climate 200 cause.
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Our plan for Queensland | Queensland Greens
Upcoming qld election so had a read through this. Its a piece of utter comedy briliance. My 10 year old understands more about economics then these guys.
Capping prices of 30 supermarket items. Why this 30? Why not other goods? Shampoo in but conditioner is out? How are they going to compensate manufacters/farmers if costs rise above their price caps? How are they going to stop shortages in these goods as manufacturers switch to producing other products which provide profit.
Creating a state bank which always provides mortgages at 1.5 percentage points below the big banks? Why would anyone get a mortgage with a big bank again? Then big banks close so how are they going to set the 1.5 percent below the big banks if the big banks no longer exist. Also dont they realise the rba will just boost its policy rate higher to ensure inflation stays within the target band making the policy pointless? Or do they plan to end the rba and take control of inflation within government again? Dont see how they could do this at a state level but if they did inflation would run rampant again.
Breaking up supermarkets so none have 20 percent market share in any region? So essentially instead of the current 3 supermarkets we will need at least 6 to satisfy this goal all with roughly equal market share. How does this transition even work? Who suddenly buys up all the existing supermarkets to turn them into new companies? Yes monopoly pricing is not good for society but clearly the greens all skipped class on the day they taught the benefits of economies of scale. The overheads of supermarkets would go up leading to higher prices. Why do the greens think prices at igas are so high?
Establish a mining company thats going to make 500 million revenue a year. How? You cant just magic this up out of thin air. Or do the greens possess magic powers?
They are going to set rents in a 100 thousand homes at not a percentage of their cost. But at 25 percent of the renters income. Yepppp. Set at income!!! So a low income earner renting a 5 bedroom home in the inner city pays less rent then a slightly higher income earner living in a one bedroom flat in the outer suburbs. Absurd. Unworkable and completely unfair.
And these ridiculous unworkable policies keep going and going. Are other state green parties policies this dumb?
Ghost Patrol
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Our plan for Queensland | Queensland Greens
greens.org.au
Upcoming qld election so had a read through this. Its a piece of utter comedy briliance. My 10 year old understands more about economics then these guys.
Capping prices of 30 supermarket items. Why this 30? Why not other goods? Shampoo in but conditioner is out? How are they going to compensate manufacters/farmers if costs rise above their price caps? How are they going to stop shortages in these goods as manufacturers switch to producing other products which provide profit.
Creating a state bank which always provides mortgages at 1.5 percentage points below the big banks? Why would anyone get a mortgage with a big bank again? Then big banks close so how are they going to set the 1.5 percent below the big banks if the big banks no longer exist. Also dont they realise the rba will just boost its policy rate higher to ensure inflation stays within the target band making the policy pointless? Or do they plan to end the rba and take control of inflation within government again? Dont see how they could do this at a state level but if they did inflation would run rampant again.
Breaking up supermarkets so none have 20 percent market share in any region? So essentially instead of the current 3 supermarkets we will need at least 6 to satisfy this goal all with roughly equal market share. How does this transition even work? Who suddenly buys up all the existing supermarkets to turn them into new companies? Yes monopoly pricing is not good for society but clearly the greens all skipped class on the day they taught the benefits of economies of scale. The overheads of supermarkets would go up leading to higher prices. Why do the greens think prices at igas are so high?
Establish a mining company thats going to make 500 million revenue a year. How? You cant just magic this up out of thin air. Or do the greens possess magic powers?
They are going to set rents in a100 thousand homes at not a percentage of their cost. But at 25 percent of the renters income. Yepppp. Set at income!!! So a low income earner renting a 5 bedroom home in the inner city pays less rent then a slightly higher income earner living in a one bedroom flat in the outer suburbs. Absurb. Unwirkable and completely unfair.
And these ridiculous unworkable policies keep going and going. Are other state green parties policies this dumb?
That's exactly what the duopoly wants you to think and say, Seeds.
Chief
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This seems like one big specificity trap.
Equally applies to "let the market decide" type arguments. Right now, the market has decided to concentrate power in the retail sector and jack up prices.
Not really working out for anyone but the owners.
Farmers have been talking about being squeezed for years, which is a net negative for local communities. How do we fix that?
Prices have been ballooning while retail sector profits go up. How do we fix that?
Equally applies to "let the market decide" type arguments. Right now, the market has decided to concentrate power in the retail sector and jack up prices.
Not really working out for anyone but the owners.
Farmers have been talking about being squeezed for years, which is a net negative for local communities. How do we fix that?
Prices have been ballooning while retail sector profits go up. How do we fix that?
Inflation is back at 2.7 percent yoy. There is currently no inflation problem right now in consumer goods/services markets. And the high inflation created over the past 3 years was due to covid pandemic policies which shut down global supply chains. They were needed policies to minimise the spread of covid. Higher temporary inflation was simply the cost of those policies. Its not something that could be fixed. Its not something we should try to fix going foward given inflation is now back down to normal levels again.
There is however a massive housing price problem caused by lack of land releases and high costs which in large part have been created by over regulation. Fixing rents or lowering mortgage rates doesnt fixvthe problem. It actually makes it worse in the medium to long run. The greens have completely the wrong policy to fix it. They need to incentivise councils to release more land and to reduce building requirements. Getting rid of negative gearing will help with lower prices but wont help lower rents. Its still a good policy though.
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Chief
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Just high prices and excess profits left from a period of overly-high inflation, duopoly price gouging, and wage suppression.
Wait until dynamic pricing comes in and is sold as an improvement in choice for the consumer. E-ink price tags are already leading the charge making it easy for one worker to walk the aisles and change pricing quickly and accurately. Normal prices for chips and biscuits at 10AM on a Wednesday (presented as a "price drop"), jacked up prices at 4PM on a Friday.
I don't know why you're barracking for the people taking money off you, unless you have a ton of shares in the duopoly and see yourself as an owner.
The natural economic course for un-controlled capitalism is a monopoly which is a problem. A duopoly is also a big problem.
Most critical markets in Australia are not operating in an economically efficient way to drive prices down.
Once competition on lower prices reaches a certain market concentration, the imperative is only driving profits up, with captured markets unable to seek alternatives.
The real answer should have been preventing such market concentration, but that ship has long-sailed.
Most critical markets in Australia are not operating in an economically efficient way to drive prices down.
Once competition on lower prices reaches a certain market concentration, the imperative is only driving profits up, with captured markets unable to seek alternatives.
The real answer should have been preventing such market concentration, but that ship has long-sailed.
It seems the LNP is shit scared in any metro seat that the greens or a teal takes what they have left
You'll find that places like I live, seat of Sturt, the demographics have changed significantly.
Burnside council has the fastest growth on kids u/18 in SA, so you are dealing with millenials now, not boomers
So its not so much wealth as age.
Higher interest rates can create higher overheads for businesses. They shrink profits, where companies can pass on market forces it will increase supply costs for other related businesses (further increasing cost-push forces). Where they can't, they have to look internally at cost cutting to improve competition in the market, especially with reductions in aggregate demand.
Anyone without their head in the sand and even involved at a moderate level of business would identify with that going on at the moment. We have companies offshoring and outsourcing galore to trim overheads.
Now this isn't necessarily a cheerful result, as it means higher unemployment (and homelessness), it means increased insolvency and bankruptcy, it means wage stagnation as companies can't afford relevant wage rises, it means stagflation.
However, theoretically, it reduces inflation, just not efficiently.
I'm not sure destroying the private property development market (which has been on it's knee's for 3-4 years itself) is the answer to helping supply forces. Particularly the accessibility of rentals. Not everyone, even with a reduction in house prices, can afford to buy a home. One of the very few high density investment classes getting green lit at the moment are build-to-rents.
If you correct property prices, it hurts development feasibility numbers, not improves them. Again, you are fixing demand-pull inflation, not cost-push inflation, cost-push inflation actually increases and you lead to cost disequilibrium and negative equity.
The government would want to be building a hell of a lot more than 1.2m homes in this plan to cover off the complete reduction in the private property market. Further, what you are also essentially talking about is a proxy nationalisation of the domestic construction market for a time. A sector which forms 10% of the GDP and ranks only behind mining in that regard and right alongside finance and health. That is a hell of a slippery slope in itself.
Further, I don't think paying for it is as simple as reducing CGT discounts or getting rid of negative gearing. With the increase in supply because of the mass disposal of these assets (which is what will happen), out the door also goes the stamp duty, land tax (the closest thing to wealth tax at the moment), income tax, GST revenue that comes with mass reduction of private housing development for increased public housing supply. Some of which are huge state revenue items. In fact all the net negative costs of investment property ownership would be borne by the government in it's entirety. At the moment it only pays a % of it (i.e the marginal tax rate of each investor if negative gearing)
I'd like to see a detail cost analysis on it tbh, it's certainly a complex issue in our market.
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Dynamic pricing is an issue. It extracts more of the rent that previously went to the consumer and gives it to the producer. I.e. Previously half the rent space to the left intersection of the demand and supply curves went to the consumer. Dynamic pricing is giving a lot of this to the producer. Not enough people are talking about it.
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Why is the course of un controlled capitalism a monopoly?
Because of economy of scales. Which is actually a good thing. It makes costs cheaper
However a monopoly is bad because it leads to monopoly power and pricing. Producers extract excess rents which eliminate and often more then offset the cost advantages of economies of scale.
No one says capitalism should be uncontrolled (except the crazy austrians who largely dont exist anymore). The idea of uncontrolled capitalism is actually illogical as capitalism can only exist with government control that will protect capital ownership.
Governments needs to employ regulation that prevent monopoly pricing and avoid duopoly collusion. Which they largely do. However they have been very lax in implementing these policies in the new industries. I.e. IT. This needs to change.
i agree with a lot of the problems the greens have identified. I strongly disagree with most of their solutions. They either make the problem worse or they create bigger other problems.
Why cant they just focus on wealth and inheritance taxes. I.e. good redistribution policies. They are easy to do and the advantages are massive.
Stop trying to intervene in prices and production unless they have a great economic grounding of why they should do so. They dont. They need to find people who do have such a background to help them. The greens price and production intervention policies are a disaster.
An excellent, considered post.
Pie eyed
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Backlash from Labor voters who sees the Greens as nothing but obstructors.
Now the Greens are trying to blame Labor for their own arrogance, stupidity and short sightedness.
Pie eyed
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Not that I can point to at the moment but anecdotally many I know in QLD have made the comment
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I have a few dozen rellies and close friends in QLD.
I would say a dozen or more have expressed discontent with the Greens obstructing Labor proposed legislation in regard to housing in particular and just generally.
Many rells and acquaintances in Canberra would equate to a few dozen who have made similar comments.
Not all Labor voters either.
I posted an opinion on why the Greens fared poorly in QLD.
