truth and the big lie

It is my opinion that this article (posted below) provides further clear evidence about the truth - and the lie - regarding who should take credit for the strength of the Australian economy ... It shows, as if we didn't know already, that the Liberal-Howard government cannot take any credit for the economic prosperity Australia has experienced since 1996 ... they have mainly ridden on the back of the reforms that Labor instituted, and in no small way the benefits that Competition policy reforms, made by Labor since the 1970's, have provided us.
Further, in my opinion, history shows that the first real legislative attempt to get serious about promoting competition and bust monopoly abuses of market power was through the passing of Trade Practices Act in 1974(Whitlam)... but, it was later on through the National Competition Policy (1995) generated by the Keating government, that prosperity was set in train.
The article is proof that the rigourous competition policy reforms (Anti-trust in the U.S) made by Labor have succeeded in a massive way ... and they have facilitated the strength of this economy ...it has nothing to do with Howard...because, as we know, Liberals are philosophically anti-competition and generally pro-monopoly... hence the absence of reform in this area over many years of conservative government since WW2.
Labor's legislative reforms have prevented monopoly abuses of market power, but more generally have curtailed monopoly pricing power by promoting new market entrants ... all of this good stuff acts as a deflationary or disinflationary pressure, that is, it keeps prices low through competition and helps destroy the real inflationary forces which exist when a monopoly/ oligopoly (Telstra - the banks - take your pick) restrict supply and drive up prices (pricing power) to its/their hearts content.... thereby sucking the life out of the economy, concentrating wealth in the hands of the few and retarding economic growth
Competition means lower prices, low inflation, low interest rates, increased credit growth, stock-market real estate booms, GDP and employment wages growth....sound familiar? It wasn't your honest John that did this...he is simply the charlatan that stole the limelight...


Anyway here it is ....cheers
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AAP

27 October 2004


Cheaper phone calls, more affordable gas and electricity, even lower-priced milk are benefits of national competition policy.

A draft report by the Productivity Commission into the much-maligned policy, implemented by the Keating government in 1995, says it has driven the economy for the best part of a decade.

It found that much of Australia's recent economic success was due to competition policy and its impact on the cost of doing business.

Commission chairman Garry Banks said across every benchmark, national competition policy had delivered and continued to deliver.

"National competition policy has been a landmark achievement in national economic reform," he said in a statement.

"It has yielded benefits to the Australian community which overall have greatly outweighed its costs."

Mr Banks warned against slowing down the pace of reform, or even backsliding.

He said there were major challenges for the economy, such as the increase in the proportion of people aged over 65, that would put pressure on the working population.

Competition policy, if properly implemented, could help Australians overcome these challenges.

"We can't afford to be complacent," he said.

"If Australians are to prosper in the face of population ageing and other major challenges ahead, we will need to do much more to improve the performance of all parts of the economy."

The commission estimates that for a series of selected services, such as energy, transport and telecommunications, competition policy has pushed up GDP by 2.5 per cent.

Average retail electricity prices are down 18 per cent, the retail price of milk is down five per cent while phone calls are at least 20 per cent cheaper.

But the commission found that although there have been plenty of benefits, some have done better than others.

"At face value, businesses generally appear to have benefited more than households," it found.

In areas where competition policy has failed to fully deliver, the commission found in most cases it was due to government inaction, or the failure to fully go through with the policy.

There has been criticism from some rural communities that competition policy has hurt their way of life.

But the commission said in all but one case - southern Western Australia - every region in Australia had benefited from a dose of national competition.