IT’S NOT DIFFICULT TO UNDERSTAND
If you want to know why Coles and Woolworths can pay farmers virtually nothing for their produce and can play one off against another, just re-read my previous post …. slowly and with comprehension.
Anything worthwhile, such as workers wages and the price of farm produce, has been deflating since 1968-70 because the tax system has favoured drones – speculators and share market investors. It’s only share markets and house prices have been inflating, via rent-seeking.
Effective demand has accordingly been declining and now we’re reaping the whirlwind. The vast majority of Australians are carrying debt–many with excessive debt they can never repay–whilst the 0.5% have been getting obscenely wealthy at others’ expense. An enormous gap has developed between the 0.5% super-wealthy and everybody else.
This is because we have a revenue ‘system’ which penalises manufacturing, small business, retailers, workers and families as it heaps increasingly greater rewards upon so-called “investors”.
Hey, Productivity Commission! You should listen up, too, because I’ve solved your greatest problems!
What’s behind this financial mess is a crazy tax system that sorely needs to be scrapped.
But I guess if the ACCC, Productivity Commission, et al, do call for essential tax reform they’ll be putting themselves out of business because their raison d’être will disappear. They only exist in order to try to counter the rather natural outcomes of a mad tax system.
So why NOT scrap a revenue system in total disarray?