Tuesday, June 10, 2008

The Victorian Government - picking losers with your taxes

I refer to today's news of the Victorian State Government announcing they will subsidise Toyota to produce a hybrid car in Melbourne.

This whole concept is idiotic, harmful and totally unnecessary.

Once again, socialist muppet Nick Mccallum was on 3AW talk back radio this morning giving a glowing endorsement and giving air time to supporters of the subsidy. One caller suggested its good for the "Australian industry" and we shouldn't think that we can't compete with China. He even let himself suggest that the reason China was so succesful in manufacturing was because they have "government support, infrastructure and planning".

Well I wonder why China's economy was a total joke till the last decade, they always had plenty of government support !!??

The simple reality is that many car manufacturers thrive WITHOUT government support, subsidies, regulations and protective tariffs.

Also, why do auto workers have to remain in the same industry till retirement. Nobody even considered the fact that these guys have valuable skills that allow them to move on and find employment in more vibrant booming industries, such as mining.

Another caller started rambling about catastrophic man made global warming and how we shouldn't think with our wallets but we should think about the world.

In all of this discussion about feeling good about yourself and saving the world, not one rational cost-benefit analysis was done. People didn't discuss how government has a habit of picking losers when it comes to R&D. People didn't discuss how a subsidy shouldn't be necessary if a hybrid can be produced economically to begin with. People didn't discuss the fact that the auto industry is already heavily protected by a 10% tariff on imports, which their lobby groups are eager to increase !

It looks like the mainstream is fairly stupid when it comes to entreprise and free trade.