Thursday, April 8, 2010

financial mismanagement or something else?

Here in Australia it has been announced that our state electricity will increase costs to the consumer by up to 60% in the coming year.
The reason being given is that half of that 60% is due to the Emissions Trading Scheme our Federal Government wants to introduce to combat global warming. In other words it's a round about way of introducing a new tax on the people, but making the utilities introduce it upon the people. Be that as it may that still leaves a 30% increase which is being touted as going to infrastructure as the electricity infrastructure is in dire need of improvements and developments to meet the projected needs of people in NSW over the next 25 years. What is shocking about this is that directors of companies such as Coca-Cola of Goodmans - fielders to name two regularly allow in their budget allocations for infrastructure write offs, and developments. It's incomprehensible that a electricity company could fail to allow for infrastructure development to meet the needs of projected growth from which they earn their profits!
Is there something else going on here? a 60% increase will put many middle class families under financial pressure and the aged and poor under extreme pressure. But just listen to the State governments answer to that. "We will make tax credits available to alleviate these pressures." they say. We will divert tax dollars through Government agencies to help out the poor and so on. In other words not only will our costs as consumers increase inordinately, but the Government will direct tax resources into those areas where burdens become horrific. Is this merely the promotion of the socialist, welfare state? It makes more and more people dependant upon the State. And why? because of an over hyped global warming scenario that has little scientific evidence to justify it.
Is there not a better way to care for our environment and at the same time not work on the basis of making more and more people dependant upon welfare?
With welfare one major change is that the bureaucracy gets bigger and bigger and more powerful.
What economic model is better than a welfare model?

any thoughts?

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