Picture it, you’re out shopping. You see a t-shirt in a shop window. You like it, but it’s $50. So you decide to shop around first.
Just in case it’s cheaper elsewhere.
You walk 30 metres down the street and you see an identical t-shirt in another shop window. Same brand, same style, same colour. To you, it’s the same t-shirt, only this one only costs $30.
It’s a no-brainer, you’ll buy that one. You make your way towards the shop door…only to find a government official standing there — ‘I’m sorry sir, this is a foreign shop, you’re not allowed to enter. If you want to buy that t-shirt you’ll need to buy the one in the shop down the street.’
Sounds ridiculous, right? It is. But it’s all part of a much bigger picture. The plan to restrict your rights to make your own decisions over what you do, what you buy, and how you invest…
Today’s Australian reports:
‘Resource and infrastructure giants will be told to spend more heavily with local manufacturing companies in a Gillard government plan due within weeks to aid struggling industries amid fears of a wave of further job layoffs.
‘Big investors will have to prove they support Australian manufacturers in a new directive from Canberra that adds to existing rules aimed at increasing demand for local steel, building products and other materials.’
It’s clear the Australian government thinks it knows best. The government knows which widgets, light fittings, steel bars and window frames a company should buy. If that isn’t central planning, we don’t know what is.
We won’t even go into the detail about how this will force prices up and harm other businesses and consumers. And we won’t explain how this will harm the businesses that profit from importing goods (docks, warehouses, transport firms, services companies)…those same businesses that employ dockers, warehousemen, truck drivers and admin staff.
Of course the government wants to impose the same restrictions on consumers. It already does to some extent…limiting the type of goods you can import, and whacking you with tax if the value exceeds a certain amount.
And on Tuesday, the Australian Financial Review reported:
‘The stock exchange wants companies to make greater use of trading halts, in the way that David Jones did last year when it received a hoax takeover offer.’
It’s all part of the trend to take the control from your hands and put it in the control of government regulators. Companies can’t run their business, consumers can’t buy what they want, and investors can’t make their own decisions without a regulator butting in.
Cheers,
Kris
From the Port Phillip Publishing Library
Special Report: The Big Money Secret of Ironstone Mountain
Daily Reckoning: A North Korean Investment Opportunity
Money Morning: How Central Banks Are Letting Inflation Get Out of Control
Pursuit of Happiness: Are You Brave Enough to Break From Technology?
Australian Small-Cap Investigator:
Why Speculating On Small-Cap Stocks is Your Best Bet in a Rigged Market