A discussion of the 2014 Australian Federal Budget, prospective Georgist solution & an examination of the deeper agenda behind the strategy.

1. From
to a “Fair Gone”
Is the Age of Entitlement Really Over?
Joffre Balce
Delivered at Humanist House, Sydney
21 May 2014

2. We have a problem & it’s
THIS BIG!!!

3. http://www.ft.com/cms/s/0/0fe00f6e-97b1-11e3-b104-00144feab7de.html#axzz31ySBiKa0

4. But We Got a
PLAN!!!

5. Here’s the
Plan!
I honestly cannotI honestly cannot
understand when &understand when &
why they cut &why they cut &
splurgesplurge
http://www.afr.com/p/national/hockey_to_raise_debt_ceiling_aQmYFEr1XBGVjDX8lAVagN

6. To Make this
Budget
Sustainable
Look at the BiggestLook at the Biggest
ItemItem
http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parli
amentary_Library/pubs/BriefingBook44p/AustInPic

7. WHICH IS …
The Commonwealth budget is about
A$375 billion a year. About 30% of that,
or $111 billion, is spent via the welfare
system – the single biggest expenditure
category

8. They want to
call it
“HARD LOVE”
You Gotta EarnYou Gotta Earn
What YouWhat You
NeedNeed

9. When the Ranks of the Welfare Class Is
Growing …

10. Have you asked your
experts?

11. If , Technically, the Problem Is …If , Technically, the Problem Is …
Matching Sources with Uses of Funds

12. Georgist SolutionsGeorgist Solutions
120 ++ Taxes AND
even more Loopholes
• Land Values: A$6.0 trillion
• A$5.0 trillion (residential)
• A$0.7 trillion (commercial)
• A$0.3 trillion (agricultural)
• GNP: A$ 1.6 trillion
• Income
• Consumption
Menu of
Fiscal/Monetary Mix
Policies & Budget
Strategies

13. Georgist Wishful ThinkingGeorgist Wishful Thinking
Raise a Budget
• Single Land Value Tax (LVT)*:
6.6-7% annualized flat rate
• Asian Dragon Mix:
15% flat income tax rate +
2.7% LVT*
• Monetary + Tax Hybrid:
Infrastructure & civil works via money creation +
Lower LVT* (6% as a single tax or 1.9% mixed) +/-
15% income tax rates
Budgeting a Common Wealth
• Human Right Priority: A Universal Citizen’s
Dividend/ Basic Income to assure everyone of the
right to a dignified human existence
• Zero unemployment/Competitive workforce:
people will work at where they have a mastery at,
a sense of contribution & self-direction/
determination
• Minimalist government: As little government as
possible when people do things themselves but
as much as necessary to fulfill its basic function
* lower, if commercial real estate were honestly valued

14. Henry George
Agenda
• The great work of the present for every man, and
every organization of men, who would improve
social conditions, is the work of education — the
propagation of ideas. It is only as it aids this that
anything else can avail. And in this work every one
who can think may aid — first by forming clear ideas
himself, and then by endeavoring to arouse the
thought of those with whom he comes in contact.
(Progress and Poverty)

15. What happens
when we lose a
“common enemy”
as we treat our
causes in isolation?
Aussies as a people have
no common strategic
vision of Australia like
the corporatocracy does.

16. The Agenda Is Discernible
when you question the
inconsistencies!
• Calling a crisis a situation for which
the rest of the OECD/First World
envies Australia for
• Forcing people to work when there
isn’t enough jobs created
• Cost Cutting Yet Spending … for
what, why & for whom?

17. Leaners vs. Lifters?Leaners vs. Lifters?
Their Votes Are Counting Less Their Contributions Are Rising
1.68% 1.75% 2.15% 2.91% 3.58% 3.97%Share of GNP

18. And It Will Help to
Demonise the Poor
It is easier to blame welfare to the
bottom 22% than the tax breaks &
subsidies to the top 2% when
government shifts the burden
of taxes to the middle 76%

19. $20 B Medical Research Fund$20 B Medical Research Fund
Will the Government Raise It “with” & for Them?

20. Where Is the Logic of Privatising TAFE
TAFE StudentTaxes
Subsidises Pays Low
Faculty
Pays Decently

21. Where Is the Logic of Privatising TAFE
Private StudentTaxes
Lends
Pays High
Faculty
Pays “Competitively”

22. While the world goes this
strategic direction …
The Australian
government goes the
opposite way
http://theconversation.com/billions-axed-in-clean-
energy-renewable-target-is-next-26578

23. Applying “User Pays”Applying “User Pays”
Dogma: “Mining DoesDogma: “Mining Does
Not Use Roads”Not Use Roads”

24. This Government
plans to spend more
to keep it this way …

25. Not Aid!Not Aid!

26. But Trade!But Trade!

27. Learn Or Earn (Before Privatisation)Learn Or Earn (Before Privatisation)
Government TAFE Students
Faculty
Pay
Decently
Pay
Low
Subsidise

28. Learn Or Earn But Pay the “Market” PriceLearn Or Earn But Pay the “Market” Price
Government TAFE Students
Faculty
Pay
Decently
Competitively
Pay
Low
Competitively
Private Providers
Lend butLend but
RepaidRepaid
SoonSoon
Subsidise

29. Weightlifters or Weightgainers?Weightlifters or Weightgainers?
1.68% 1.75% 2.15% 2.91% 3.58% 3.97%

30. Lifters or Weight Gainers?Lifters or Weight Gainers?
Wages’ Share of Total Factor Incomes Profits’ Share of Total Factor Incomes

31. If we are nation of
“lifters” …
Is profitability
what raises the
nation?

32. The most
profitable
are not the largest job
generators.
So why are theySo why are they
most “protected?”most “protected?”

33. A Closer Look at a “Lifter”
http://www.yourdemocracy.net.au/drupal/node?page=15

34. How Real Estate Is
Held 4 Ransom:
Fuel Asset
Acquisition, Not
Production
Look at what
“negative gearing”
does for the budget!!!
Kusher, Cameron. “Negative Gearing and Its Impact on the Housing Market.” 13 December 2012 in Economics,
Housing Affordability, National Markets, Rents, Research. http://blog.rpdata.com/2012/12/negative-gearing-and-
its-impact-on-the-housing-market/

35. Commercial Banking Has
Never Had It So Good!
Despite the falling
rates of the RBA

36. Corporations will “share the
burden” when & if they “lose” their
tax breaks …
And their corporate tax rates are
cut like in the rest of the world.
Walsh, Katie and Greber, Jacob with Smith, Michael.”Company Tax Cuts Dead on Arrival.” Financial Review. 14 August 2012.
http://www.afr.com/p/national/company_tax_cuts_dead_on_arrival_6ITy18jzR7ZN5a0Z4htnqM

37. “… higher wages, lower
government deficits, and
weaker foreign trade could
conspire to put stress on
corporate profits in 2014.”
Which is why they want government to
(1) tax wages/fixed incomes, not profits;
reduce welfare & aid
(2) preserve corporate welfare &/or cut
corporate tax rates
(3) pass the Trans-Pacific Partnership to
bolster corporate interests
http://www.businessinsider.com.au/corporate-profit-margins-2014-2013-12
(4) By the way, they also want
to privatize profitable
government corporations
The Real StrategicThe Real Strategic
Agenda Is This!Agenda Is This!

38. Weapons of Mass Distraction: IdeologyWeapons of Mass Distraction: Ideology
• Trickle Down
• Users Pay
• Corporations Do It Better
• Lazy Bums/Dole Bludgers!
• Victims/Bleeding Hearts
• Left/Right Political Thinking

39. If a Leader Has Big Ears, He Should Listen …If a Leader Has Big Ears, He Should Listen …
Brennan, Frank. “Advancing Human Rights in Australia.” 16 October 2012.
http://www.eurekastreet.com.au/article.aspx?aeid=33687#.U3dICih2p-s
Well Being
Security of Dignity
Dignity of Others
Environment
Access & Movement
Social Justice

40. FIGHT THE STEREOTYPES!FIGHT THE STEREOTYPES!
Calling the Rich Sinister & Corrupt
Is as Bad as Calling the Poor
Lazy & Dishonest

41. And Take the Beam Out of Our Own EyesAnd Take the Beam Out of Our Own Eyes
The Biggest Welfare Bludgers & the Corrupt Have No Class

42. Money Politics is Corruption:
The abuse of authority to defend vested
interests contrary to the common good
Survey: 96% of Americans believe it's
important to reduce the role of money in
politics, but 91% feel it would never
happen …
Is this true in Australia?
“Larry Lessig completes 185-mile walk across New Hampshire, spreading
the word that the U.S. electoral system can be fixed.” TedBlog. Posted by
Kate Torgovnik May on 24 January 2014. http
://blog.ted.com/2014/01/24/larry-lessig-completes-185-mile-walk-across-new-hampshire/
http://www.smh.com.au/federal-politics/political-news/media-unions-political-
parties-corrupt-20121105-28u3w.html

43. Speaking as a Student of GeorgismSpeaking as a Student of Georgism
• As robbers unite to plunder and divide the
spoils, the trunk lines of railroads unite to
raise rates and pool their earnings. The
public is then forced to pay the cost of the
whole maneuver, as the vanquished are
forced to pay the cost of their own
enslavement by a conquering army.
(Progress and Poverty)
• I care nothing for creeds. I am not concerned
with any one's religious belief. But I would
have men think for themselves. If we do not,
we can only abandon one superstition to
take up another, and it may be a worse one.
It is as bad for a man to think that he can
know nothing as to think he knows all.
(A Perplexed Philosopher)

44. Coming from the Third
World where I witnessed
the policy direction first
hand, I’ve seen the future
& it sucks!

45. The Rest Is Really Up to Us …The Rest Is Really Up to Us …