KSS January eKourier

NEV’S NOTES

NEV'S NOTES

Neville Kennard (1937 - 2012) Founder of Kennards Self Storage, enjoyed and was very passionate about expressing his ideas. These little gems have been appreciated by many in KSS. We will continue to publish his ideas that we have in stock. Enjoy!

THE RIGHT POLICIES TO FIX A DEPRESSION

It is not surprising that in a democracy a populist government (and aren’t they all?) will opt for some short-term palliative, a superficial fix that will see it continue to be popular for the rest of its election cycle.

A nd it’s not surprising that a govern - ment will take advice from taxpayer- funded bureaucrats or consultants. And it is equally not surprising that these taxpayer-funded “experts” will give advice that will lean towards their own well-being. Thus we have destructive “stimulus spending”, morally-reprehensible “tax handouts to all” (even non-taxpayers) with advice to spend it, rather than save it. Any citizen with an ounce of common- sense can see that it was exuberant spending, reckless borrowing, a sense of endless prosperity that got people and companies into the over-borrowed mess they are in. And the way out is not more spending, but saving. More spending will give a short-term boost, but what then? Another boost? Another stimulus and hand-out? It is quite likely that this is what the government will do. They probably do know that the piper will have to be paid one day, but perhaps this day will be on someone else’s watch and the incumbents won’t have to be the ones paying, the ones prescribing and taking the strong medicine. Prosperity comes from saving and investment, not from spending; spending, when it as a result of saving and investment, is affordable and sensible; spending is what we have saved (and invested) for.

people and companies to save, pay off debt, accumulate capital. Eliminate the most destructive taxes, like payroll taxes, capital gains taxes, and the dozens of nuisance taxes. Cut spending, government spending that is. Razor-gangs, slash and burn, anything that will reduce the non-productive costs, the waste, the destructive burden of government. Eliminate or reduce substan- tially minimum-wage laws and employ- ment restrictive laws so employers can hire (and fire) easily. Eliminate, not just reduce, some government departments. comes from saving and investment, not from spending; spending, when it as a result of saving and invest- ment, is afford - able and sensible; spending is what we have saved (and invested) for. Deregulate: lighten the regulatory burden; more slash and burn. Make Canberra a ghost town. Watch an emigration out of the tax-consumption capital of Australia. These people can get real jobs and find out what it’s like to be tax-producers rather than tax-consumers. Privatise: sell government assets, get them into private hands where they can make profits, innovate, pay taxes, Prosperity

compete. The money can go to pay off debt, pay off redundant bureaucrats, and further reduce taxes. Get rid of thousands of tax-consuming bureaucrats and let them find work, real productive work, in the private sector. Many of them have never had a proper job in their lives so it will be a shock. But they will learn. It’s so simple! And it ain’t politically easy, so it probably won’t happen; too hard for populist politicians. Australia is currently enjoying good prosperity thanks to abundant resources, a productive educated workforce and a culture that is mostly honest and fair. It is no thanks to silly politicians whose only goal is to get elected. But these prosperous areas will some time slow down — they always do — and then we will need the above policies. If we had them now the slow-down may be indefi- nitely postponed; but that would be too much to expect.

So what should they be doing? This is very simple. But it is not politically easy.

Cut taxes, and while you’re about it, reform and simplify the tax system; help

April 13th, 2011

18 Kennards Kourier Jan 2022