eKourier Oct 2016

NEV’S NOTES

Nevs Notes... Extend Politicians’ Holidays To Create Prosperity

Nev enjoyed expressing his ideas in this section of the Kourier. These little gems have been appreciated by many in KSS. We will continue to publish his ideas that we have in stock. Enjoy!

T he government and much of spending. Many economists who have gone through the conventional universi- ties still believe in the Keynesian model of “managing” an economy. Keynes, Samuelson, Krugman, Gittins have never “got” the essence of capitalism, of Austrian Economics as propounded by von Mises, Hayek, Hoppe. Governments do “stimulus” to crank things up. They exhort the banks to lend. They are not dumb people, but they are wrong. It is not “spending and consumption” that create wealth; it is saving and investment. Duh! the mainstream media and the establishment business interests, want to create prosperity through

Spending and Consumption are what follow Saving and Investment, not what precede it. It was an over-exuberance for spending and consumption that brought on the Global Financial Crisis. People borrowed and spent. Govern- ments (in many countries), with their big-spending ways, their corrupt central banks as monopolist issuers of legal tender, encouraged this spending. What should be done now, today, is for governments to cut spending — their own wasteful spending. Cut it now, cut it big. Cut government departments and the regulation that holds them up.

tomorrow, is to cut taxes; eliminate many silly little nuisance taxes, cut company tax and personal income tax to a maximum rate of 25%. A max rate of government spending (all govern- ment — Federal, State and Local) to GDP must be 30% in the first year. Then reduce by 2% a year till you get it to 25%, then I will let you go a bit slower — say 1% p.a. till you get to 20%. At 20% Government Spending: GDP the economy will boom and people will be prosperous. It’s the economy, stupid! And that is it. Do no more. Sit back you busybody politicians and watch the correction take place. Go on holidays. You can stay in first-class hotels, drink champagne, have talk-fests, waste the tax-payers’ money — this will be less damaging then “doing things” (and you can still save face by saying that you’re doing your own stimulus spending). Go away, do nothing, and if you really have to do something, do some undoing. Undo, de-regulate, privatise, de-tax. People who have over-indulged go away for a De-Tox at a spa. Politicians should take themselves off to such a place for a De-Tax. Clean up body, mind and economy.

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Before money can be spent on consumption it needs to be earned and saved; the alternative to saving first and then spending is borrowing and spending. Then you have to pay it back. Duh!

The next thing to do, tomorrow, is privatise everything in sight; this will balance the budget quickly.

Before money can be spent on consump- tion it needs to be earned and saved; the alternative to saving first and then spending is borrowing and spending. Then you have to pay for it later. Duh!

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January 9th, 2011

The third thing to do, the day after

19 Kennards Kourier Oct 2016