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Marxistoid Economists Consider Historically Bankrupt Radical Left Saviour of Greece

June 19, 2017

In view of the ruinous policies of Syriza, and its completely inept negotiations with the European Union, that since its advent into power two and a half years ago is economically, and politically destroying the country, our two economists, Yanis Varoufakis and James Galbraith, who were so vocal is supporting the Marxist party of Syriza, are presently no longer unanimous in their stand toward it. While Varoufakis is a vehement opponent against Syriza and pours profuse vitriol over its leadership, Galbraith, remains totally numb and tuned out. It is for the above reasons that I’m republishing this article that was written four years ago. I hope the readers of this blog will find it of some interest.

Fair is foul, and foul is fair, /Hover through the fog and filthy air (Witches of Macbeth chanting their cursing ditty)

By Con George-Kotzabasis— July 04, 2013

In their article published in the New York Times  on June 23, under the title “Only the Left Can Save Greece”, the two politically ‘pinkish’ economists teaching at the University of Texas at Austin, James Galbraith (the son of the famous John Galbraith) and Yanis Varoufakis, argue that neither America nor Europe should fear an ascension to power of the Left wing party of Syriza in Greece on the contrary, they should applaud it, as a government of the left would reverse the defective policies of the European Union that have been so destructive to the Greek polity and to its people as well as to many other European countries.

The two economists were shocked at the closure of the Hellenic Broadcasting Corporation (ERT) and denounced the Samaras government for its authoritarian and undemocratic action, of depriving Greeks of a public service of information and entertainment that was invaluable to them. The government however closed the public broadcaster temporarily and planned to replace this cesspool of administrative corruption, opacity, and cronyism, for which each Greek household had to pay a levy of 50 Euros per year, with a new public broadcaster not run by the government but by personnel chosen on meritocratic criteria and professionalism that would upgrade the service provided to Greek viewers and at a cheaper price.  Galbraith and Varoufakis, in their support of this corrupt and inefficiently run public entity  and demand of its reopening, found a kindred political ally in the leader of the Marxist party of Syriza, Alexis Tsipras, who had committed himself to re-open with all its personnel intact if he became prime minister. Tsipras’ crocodile tears for the public broadcaster, which in the recent past had condemned as being the mouthpiece of the extreme right, exposed his blatant political opportunism in this U-turn from hate to love for ERT. But they found him also to be an invaluable ally to their economic proposals of how to lift Greece out of the crisis. .

Galbraith’s and Varoufakis’ solution to the crisis springs from the growing of a hundred blooming flowers in the luxuriantly prodigal Keynesian garden. Their package of Keynesian remedies consist of “a kind of European equivalent of America’s post-crisis Troubled Asset Relief program; an investment and job program; and a European initiative to meet the social and human crisis by  strengthening  unemployment insurance, basic pensions, deposit insurance, and the expansion of core public institutions like education and health.” Notice, that all of these remedies are to be financed by  government and taxes from private enterprises. How then government can finance all these things when its coffers are empty and depend on European loans to pay for primal services such as schools, hospitals, and public servants, and when private enterprise has no incentive to function or remain in an unstructured economy that has been for many years inimical to it? And the two economists do not make  a pip about the necessity of private foreign and domestic investments that are the only economically sustainable and viable investments that can initiate growth and economic development that are the sine qua non that will pull Greece out of the crisis. And that these investments can only be made under the incentive  of structural economic reforms that are favorable to private enterprise, and strict fiscal policies that perforce can only be accomplished by hard measures which are inevitably painful to the general populace.

Since neither the political color nor the gray matter of Galbraith and Varoufakis were able to convince serious politicians and economists in the Euro zone, or Greece, of the correctness of their Keynesian mirage as a solvent to the European and Greek crisis, they found in the fiasco leadership of Syriza, of Tsipras, the intellectual salvation of their by now withered flowers of their Keynesian remedy. (This speaks volumes about the value of their proposals in that they found their support and cerebral salvation in the intellectual and moral bankruptcy of the Greek left.) Tsipras bereft of any tenable economic policies, and rationalizing this vacuity in policy making by populist rhetorical denunciations of the policies of the Samaras government, eagerly embraced the policies of Galbraith and Varoufakis, which ideologically are cognate to his own as a ne plus ultra government interventionist himself, thus giving to his own policies some sort of academic prestige from this ‘south of the border’ economists that he is unable to get from more serious experts in the profession. (But beggars cannot choose.)

Indeed, the policies of Tsipras have their source in a variegated coterie of Marxists getting their inspiration from the flashing pan of Marxism, as the rising sun of the latter has long ago disappeared from the astral constellation of the universe, never to rise again. Tsipras, as a true believer of the great man, Karl Marx, attended the Marxist organised Subversive Festival of Zagreb in Croatia last March, which was likewise attended by both Galbraith and Varoufakis. Indeed, the former announced with pride his attendance of the Festival, in a lecture he gave to socialists in the German Parliament last week, where the gladiators of the great imperator Karl Marx had gathered together from all over the world and rushed into the arena of the Amphitheatre of Zagreb, with nets in one hand and swords in the other, to fight and slay the wild animals of capitalism, which their predecessors in the socialist camp, even better armed with technological weapons, had failed to slay. Moreover, Tsipras was an aficionado of Chavez and had visited Venezuela last year with the hope of getting financial help  from its president with an implied commitment of making Greece a protectorate of Venezuela, if not the European Venezuela. And yet Galbraith and Varoufakis in their political naiveté write in their article in the New York Times that the Americans have nothing to fear from a Syriza government.

Galbraith and Varoufakis, like the witches of Macbeth cursing the Samaras’ government as foul, undemocratic and authoritarian, slavishly implementing the dictates of the European Union, and as economically incompetent, are predicting its downfall while stirring the pot of their quackish remedies which nobody will ‘buy’ other than Tsipras. Meanwhile, Samaras wisely, assiduously, and decisively is transforming Greece within the short span of one year by an unprecedented series of structural reforms that are increasing competition–Greece is in the 22 position internationally for the first time–reducing the bureaucracy, especially its inefficient part that was an obstacle to investments, and planning to make it more efficient on meritocratic standards, changing the economic milieu by making it friendly to business and investments, and leashing the arbitrary and ruinous power of unions which for many years had prevented foreign investments in the country. Moreover by his virtuoso performance in the negotiations with the European Union and the IMF, Samaras  has blunted some of the austerity measures that have been a major factor in obstructing the re-igniting of the economy and artfully polishing these measures that will put Greece on the track of development. He was able to convince the leaders of the EU to provide Greece with extra funds for employment programs that will materialize by the beginning of 2014, more resources from the European Bank of Investments so they can be ploughed into small and medium sized businesses. He has started building Autobahns that have created 25,000 new jobs and he has enticed the economically hard thinking Chinese government to invest 350,000 million Euros in the port of Piraeus thus making it the entreport of commerce between south-east Asia and Europe. ( The European Council announced that the port of Piraeus will be named as the capital port of Europe for 2015.) Also the Chinese are interested in making more investments in the infrastructure of the country, especially in its railway network by which they will transport their goods into Europe. But the most important and greatest achievement of the Samaras’ government up to this moment has been the building, through Greece, of the conduit by the Trans Adriatic Pipeline (TAP) that will convey natural gas from Azerbaijan to the heart of Europe. TAP will invest the huge amount of 1.5 billion in Greece and will generate 12,000 jobs by 2014 in the country. This, according to one authority in the energy industry, has been the personal accomplishment of Samaras who in his visit of Azerbaijan and meeting with the Prime Minister of the country three weeks ago, convinced the latter that it would be more efficient and economically cheaper to build the conduit through Greece instead of through Bulgaria and Romania, a project which the international consortium backing it was favorable to win, and lost it only, with the intervention of Samaras. Furthermore, this enormous investment, behind which one of its investors is the global gigantic company BHPBilliton, engenders confidence to other investors that Greece is about to pull itself out of the crisis, and hence, encourages and attracts more investments into the country and thus will increase employment which is one of the major challenges of the government.

The government under the statesmanship of Samaras is determined to pull Greece out of the crisis and not to squander the sacrifices Greeks had to make for the economic, political, and cultural Renaissance of the country. The great, fair achievements of the Samaras government, in an unprecedented short span of time, are depicted and cursed as foul by the two Marxistoid economists, James Galbraith and Yannis Varoufakis. Ignominy, loss of intellectual honor, is of no concern to them.

I rest on my oars:Your turn now 

Address to former Chief Justice of the High Court of Australia

January 1, 2017

By Con George-Kotzabasis

In view of the prevention of terrorists attacks targeting main public centres in Melbourne during Christmas, I’m publishing the following address that was delivered by me, at the private chambers of Sir Harry Gibbs (former Chief Justice of The High Court of Australia) on December 14, 2002, who as Chairman of The Samuel Griffith Society presided over its annual general meeting.

 Mr. President,

I’m aware that the issue I’m raising is not directly related to the charter of our society. But because our way of life, our values and the lives of our citizens are under threat by a deadly network of fanatic terrorists, and because these values are written and reflected in the Australian Constitution, our society as a defender of the latter, cannot avoid from being embroiled in this war against terrorism and its state sponsors.

As in all wars, beyond the human and material mobilization of a nation, the moral and spiritual mobilization of its people is just as important, if not more important. I strongly believe that in the latter mobilization, our society can play a significant and important role.

Recently, there has been a cravenly and ignominious attempt to disarm the country of its strength from effectively confronting this terrorist threat. A secular and sacred chorus have sung an ode in praise of disloyalty and pusillanimity, as the best means of defence against terrorism. Four former prime ministers (Whitlam, Fraser, Hawke and Keating) a Governor General (Bill Hayden) and a motley of religious prelates, disseminated their nihilistic wisdom to the people of this country, as to whether Australia should support the United States in a war against Iraq. Their pronounciamento of No to War, was remarkable for its poverty of thought, for its lack of historical insight, and for its richness in levity. In the latter case this was demonstrated bizarrely by Mr. Keating, who in a tongue-in-cheek interview on channel 10, stated that while we should keep our important alliance with the USA, we should not support the latter in its war against Iraq. In his own inimitable words, he remarked, that a “clever nation—read a clever government under his premiership—could have its-own-cake-and-it eat—too.” Such a proposition is of course based on the assumption that the other party, in this case the USA government, is so stupid, that it would be willing to fall victim to Mr. Keating’s con-man diplomacy and would gratify his penchant of having his cake-and-eating-too.

But despite the lack of seriousness and frivolity of these ideas, propagated by this prominent group of court-jesters, it would a mistake to underestimate the great damage these ideas would make on the moral fibre and on the fighting spirit of the country. It is for this reason that this sophistry of these intellectual usurpers, must be countered and exposed for its spiritual and moral bankruptcy. It would be a historical and political folly to allow these political and religious romantics, the nipple-fed intellectuals of academe, and the populist media, to monopolise, dominate, and debase the debate on the war against terrorism. I believe that our society can play a pivotal role in counter-balancing this monopoly and exposing the brittleness of the arguments of this caricature of statesmanship.

Mr. President, I’m aware of the paucity of the material resources of our society. But this should not be a reason why the wealth of its intellect, imagination, and moral mettle, should lay fallow in these critical times.                

 

Will America Rise from its “Comatose” State?

December 5, 2016

In view of Trump’s Victory at The Elections, I’m republishing the following discussion between me and an American for the readers of this blog.  

By Con George-Kotzabasis

A reply to a very clever American Open Salon

The Global Credit Crunch and the Crisis of Legitimacy

By RCMoya612

RCMoya, after your excellent and resplendent analysis I feel, if I captiously quibble about few points, like a bat squeaking in the dark. First, inequality might have “continued its forward march” but I would argue that it did so on a higher level of general economic prosperity in America following the up till now unassailable historical paradigm of capitalism and free markets that has made the poor ‘richer’ in relative terms, as Amartya Sen has contended.

Secondly, America’s “hectoring and ignoring” has its counterpart in Europe and in other continents whose countries were strong allies of the US during the Cold War but with the collapse of the Soviet Union have reappropriated their independence both geopolitically and culturally and expressing this in their own hectoring and ignoring against America, thus continuing the irreversible law of the political and cultural competition of nation-states.

Thirdly, I would argue that as long as America continues to be the centripetal force attracting the “best and the brightest” to its shores and not stifling the Schumpeterian spirit of entrepreneurship and “creative destruction”, it will be able to rise again even from the ashes of a comatose state and will continue to be in the foreseeable future the paramount power in world affairs.

And fourthly, the rejection by Congress of the funding plan that would have a better chance than none to prevent the economy from collapsing was inevitable in the present political climate where reason cannot compete with populist emotionalism and when a swirl of weak politicians, like Nancy Pelosi, and, indeed, Barak Obama, are its ‘slaves’. Only by cleaning out these wimpish politicians from positions of power will the political narrative reassert its legitimacy.

RCMoya says

kotzabasis

October 01, 2008 07:26 AM

Thanks for the points. Interesting thoughts.First, I’d be careful in praising the ‘unassailable historical paradigm’ of capitalism and free markets. That has never really been the case elsewhere in world–including Japan and Europe, and definitely not in the third world–and yet that has not stopped those countries from reaping the benefits of a globalised economy. Simply put, capitalism may have been successful–it is–but it is not the case that completely ‘free markets’ have played a central role in the enrichment of advanced economies. That was probably the result of a misleading analysis (an altogether too cheery one at that) of Adam Smith’s ‘invisible hand’–which has monumentally failed more than once since the 1980s.

Second, Europe may have been an American vassal in the early parts of the Cold War–and yet still managed to create economic structures that were different from the United States. Britain, France and Germany have had distinct economic approaches–and that’s to say nothing of more interventionist Scandinavia–and in all of these countries (save for the UK) the post-war years were considered an extraordinary period of growth.You’re probably right that we’re now re-entering a period of political and cultural competition between states. I think this is a good thing, though it’ll take some time for Europeans to get used to the idea of a weaker America.Your third point is probably concedable…though only to a point. The ‘best and the brightest’ only go to America because of its perceived economic vitality. Take that away and there’d be less of a reason to head over. Also, buying into the ‘Americans are so entrepreneurial’ myth is rather problematic–because some European states, for example, have a greater slice of the economic pie coming from small and medium-sized business owners than America, land of the corporate shopper, has. Maybe it’s the contrary situation at present: maybe Europeans have ‘stifled’ entrepreneurialism here…and in any case releasing it would help, not hurt it.

I’d warn that nothing lasts forever, that nothing is ever guaranteed; if America’s financial system DOES go under even further America’s future role as a power would be substantially jeopardised.Your last point starts off well…until you reveal your partisanship. The Democrats certainly don’t have a monopoly on forceful politicking, to their detriment. I would argue that their greatest weakness is in their ‘social democracy light’-style of policies.Yet, all the perceived ‘strength’ in the world hasn’t made the belligerence of the Reagan-Bush-Republican era any more palatable to the world–and, in fact, has in the longer-term probably weakened America considerably.Strength alone cannot substitute for pragmatism, intelligence and good policy.

Kotzabasis says

OK, but you have to answer the intruding historical questions under what economic system Japan and Europe developed and which was the motor of the globalised economy? One would be silly to say that capitalism is an ‘absolute monarch’ and free markets are the ‘Sun King’ of economic development. But we are talking here about basics and not the sometimes necessary state intervention which has been merely, if you allow me to use this metaphor, a changing of an occasional punctured wheel (excepting the present situation) of an omnibus that has been running quite well for a long time on all rough terrains.

And you have to be consistent with your own logic, if you accept the reality of a globalized economy, as you do, which was the offspring of a long gestation starting in the 1980s, how can you imply at the same time that this globalized economy was begotten by the “monumental” failure of the 1980s? The question of Europe is what cemented more the “economic structures” of Europe. Was it the working spirit of capitalism or the working spirit of socialism? And if a mixture of both is your obvious answer, I’ve to remind you that mixtures are not equal and on the scales of economic development capitalism continues to ‘tilt the scales’ in its own favour contra socialism, and that also applied to your economic model in Europe. Perceptions do not have a long life and for more than a hundred years now America continues to attract the best and the brightest on its shores. So its economic vitality must have more solid grounds than perceptions. Again you are inconsistent with your own logic; if the best and the brightest are in America, as you concede, then your “Americans are so entrepreneurial” cannot be a “myth”.

Needless to say “nothing lasts forever and… ever guaranteed” since man’s fate is to live and cope in a world of uncertainty.Lastly, I’m surprised that you consider my judgments on person’s characters, in this case of Pelosi and Obama, and on political parties as being partisan. Under your criterion only a person who made no judgments would be absolutely impartial. The facts are that the Democrats have cut their sails to the populist wind and are running their campaign on the emotional hate and animadversions many Americans have for the Bush administration and by association the Republicans. “Pragmatism, intelligence and good policy are the offspring of strong genes.

What to Do with ISIS Challenge to International Law

July 31, 2016

By Con George-Kotzabasis July 28, 2016

The following was my short contribution to a Seminar held in the Law School of Melbourne University, on July 28, 2016, with the theme “The Jihadist Challenge to International Law…,” whose main speakers were two professors of International law of Harvard and Yale Universities respectively.

 The Jihadist challenge to the ‘mountain’ of International Law must not give birth to a ‘mouse’ that will be at the mercy of the cat’s paw, of humanitarian lawyers. It must be taken off their gentle hands and must be handled by judicious and realist legislators, who are fully aware that this is no mere challenge to International Law but an existential threat to Western civilization. Lawgivers therefore must enact the harsh laws that will protect this civilization.

If the Jihadists are prepared to fight with the laws of the jungle, then they must also be prepared to suffer the whole hog of these laws. They must not expect that they will be protected by the humane laws of the West.

Finally, it is a great fallacy to believe that non-intervention or non-resistance by the West will touch the souls of these fanatics. On the contrary, it will strengthen their belief that the West is weak and they will attack it more ferociously and murderously. And indeed, in their wild chase of the chimerical seventy-two virgins they will not hesitate to use weapons of mass destruction against the West.

 

Smart Politicians Stand Naked Before Labor’s Master: Ideological Stupidity

June 29, 2016

By Con George-Kotzabasis June 28, 2016

Since the economically profligate Whitlam era, the only Labor government that was bracketed off from Labor’s inveterate stupidity was the Hawke-Keating government. The present leadership of Shorten-Bowen taking a leftist turn in its politics, like the Rudd-Gillard administrations had done, as adumbrated in its pre-electoral commitments of “big-government,” is repudiating the prudent policies of Hawke-Keating and wilfully adopting, retrogressively, the stupid and disastrous paradigm of European socialism that had sunk Spain, Portugal, Ireland, Greece and Cyprus into the abyss of bankruptcy, economic crisis, and political instability. Moreover, it is doing so in the face when even the Scandinavian haven of the social democratic Welfare state is severely clipped of its largesse, as at last has been realised to be no longer economically viable. Anders Borg, the wunderkind as finance minister of Sweden, initiated the incremental dismantling of the Welfare state, lowered taxes in the private sector, which has galvanized the creation of new jobs.

But returning back home. The leftist political editor of The Sydney Morning Herald, Mark Kenny, is forecasting “dire trouble” for Labor on the debt and deficit front. Terry McCrann, of The Daily Telegraph, ominously declares “Shorten would plunge the country into greater debt”. And Henry Ergas, of The Australian, claims that even the latest backflips of Labor will not be sufficient to close the deficit gap and its “mythmakers” will be tempted “to conjure revenue increases out of thin air, just as the Rudd-Gillard governments did pointing to a golden future time when receipts would soar.”

But to believe in myths and tales of future increases in revenue, when The World Bank and the International Monetary Fund slash hopes of economic growth in the near future, is highly precarious, as it would lead the country into complacency and prevent it from taking the necessary measures to countervail a looming long recession. Furthermore, such a possibility is strengthened with the present event of Brexit, which could ominously beget both the dismemberment and the disintegration of the UK and the European Union, whose widespread ramifications upon the geopolitical and economic spheres of the world would devastate any prospects of economic growth for many years. And it is most unlikely that there will be, like in 2008, another China to save Australia from woeful economic distress.

Further, Labor with egregious lack of imagination and foresight is not factoring-in such imponderables as a precipitous fall in world prices of minerals in a context of world recession and the calamitous consequences that would follow, hitting public finances to smithereens and engendering a seriality of deficits with no hope of being reduced, with the outcome of plunging the country into the abyss of bottomless debt and insolvency. Is Bill Shorten going to be the “Maduro” of Australia, who, as the world price of oil dropped to lower depths, as a socialist president of Venezuela, continued the dissolute economic policies of his predecessor, Chavez, that turned the country from contrived prosperity to real poverty, once the government coffers were emptied, and indeed, into a hunting ground for dogs and cats to feed his people?

It goes without saying, of course, that this is an exaggeration and one could hardly imagine Australians shooting dogs and cats to feed themselves. It is merely used as an example to emphasize the dangers overshadowing an economy, when its Stewarts, the government, insouciantly do not take in consideration future possible events that could dramatically affect the economic course of a country and do not take prospective measures that would shield the country from such catastrophic effects.

One asks the question why the smart as they come politicians of Labor, such as Andrew Leigh, the assistant shadow treasurer of Labor, let their guard down and are reluctant to prepare themselves for these uncertainties of the future, believing that Australia somehow is protected by divine mandate from the ills of world recession and that Australia’s “economy is indestructible”, to quote Rex Connor, a minister in Whitlam’s government? For people who have studied the policies of Labor over a number of years the answer is simple and obvious. All their major policies are motivated by their passionate belief in the socialist utopia. And the implementation of these policies requires, according to this ideological schema, big and interventionist government and hence, high taxes; and the redistribution of wealth and not its greater increase are their priority. Despite the glaring evidence showing that augmenting the size of wealth is the only and sure way to enhance the standard of living of the ordinary people. The latter proposition has indisputable historical precedents, as it was the flourishing and ever increasing wealth of capitalism, that for the first time in history, pulled millions of people from the hovels of poverty onto peaks of prosperity. But Labor is blind before this historical fact. Like a drug addict Labor is fixed to its socialist doctrine and lives in a stupefied world of unreality and wishful thinking.

The matchsticks foundations of socialism are collapsing all over the world, especially in Europe, yet Bill Shorten’s Labor continues adamantly to believe that from this wreckage one could still build the just and equal society as envisaged by Labor’s quixotic visionaries. It is under this standard of socialist ideology that Shorten undermines and repudiates the prudent and pragmatic policies of the Hawke-Keating government, whose “Accord” between employers and workers engendered a congenial milieu for investments and the creation of new jobs with the consequence of increasing the living standard of Australians. Bill Shorten’s silence about these productive structural reforms and fiscal frugality of the Hawke-Keating era that had put Australia on a track of prosperity is a contemptuous affront to the two architects of these reforms. It was therefore rather surprising and amusing to have seen the two conductors of this inimitable political and economic performance sitting on the front-row of Shorten’s Launch of the Labor campaign, clapping at a leader who had mockingly renounced their wise policies. For Paul Keating, especially, standing next to Bill Shorten who had adopted and announced policies that would lead to a “Banana Republic,” it must have been an exceedingly painful occasion. Perhaps as painful as replacing Placedo Domingo with rock-and-roll.

I rest on my oars: You turn now

How the Good Intentions of a Left-Wing Economist Lead to Bad Results

June 14, 2016

By Con George-Kotzabasis May 19, 2016

The following is an unconsummated reply to professor Andrew Leigh’s lecture with the title, “Markets Monopolies and Moguls…” held at Melbourne University, on May 19, 2016. This was due to the chairman’s instruction that only a sprinkle of questions would follow the end of the presentation and there would be no debate

I’m overly distrustful of people who use scarecrows, in this case the “mogul” Richard Pratt, to make their argument. Moreover, it is a term associated with sinister practices and easily tantalizes and incites the feelings of the crowd to purge the evildoers. But more dismally it is wrong in your case, as it is an exercise in a fallacy of composition: Just because there are few rotten apples in the cart it does not mean that all apples are rotten. The unprecedented prosperity of capitalism was not engendered by rottenness but by the creative, innovative, and dynamic spirit of entrepreneurship.

The great economic historian, Fernand Braudel, depicts the shifts of capitalist centres and their entrepreneurial moguls, from Venice, Genoa, Antwerp, Amsterdam, London, to New York, spreading boundless prosperity to these metropolises and their environs by means of the ceaseless division of labour, international trade and the capitalist dynamic ethos of entrepreneurial creation. It was the sun-king of entrepreneurial capitalism that had pulled millions of people out of the sunless caves of poverty into the sunlit vistas of capitalist plenitude, heightening their standard of living, for the first time in history, on ever-higher plateaus.

(The scientific writer, Arthur Koestler, contends that the great discoveries of science were motivated by ambition, competition, and vanity, which happen also to be the inherent characteristics of capitalist moguls.)

You have mentioned a lot of negatives about “bigness” and market concentration but not the fact that they rather have a short life since there is no blockage of entry in a competitive economy to other entrepreneurs into these concentrated areas. One example, the entry of the innovative entrepreneur ALDI into the food-chain services and its reduction of the prices of its products in comparison to other chains, not only attracted many consumers to its stores but also forced the other two major super markets of COLES and WOOLWORTH to reduce their prices at the feel of the competitive pinch of the newcomer. Competition does not discriminate between big and small but it equally affects both.

But to deal with your argument that inequality should be a major consideration in competition policy, and regulating mergers and prices would be beneficial to the consumer. The competitive market in itself, without the need of regulation, spreads its cheaper products to an ever-greater number of consumers and therefore decreases inequality. The competition of Telstra and Optus is an example. The same applies to iPods. Ride a train, a bus, or a tram and you will see even the lower classes fully equipped with these cheaper gadgets of a competitive technology and once again the line of inequality is lowered down for the less wealthy consumer.

It is not the business of government to regulate mergers and pricing. This is the bailiwick of entrepreneurs who decide if such a merger will be profitable, whether it will be able to compete with an already established corporation producing the same product, and setting its price on such a level that it will attract consumers to buy its product en masse. Furthermore, as far as the regulation is close to the estimates and interests of the entrepreneurs it is superfluous; and as far as it is distanced from these estimates and interests, it is destructive. No businessman will invest his money in a venture where profit is unattainable. Hence, your regulation, that aborts the setting-up of a merger that would produce cheaper products for the consumer, by depriving the latter from having these goods, increases the inequality of the mass consumer. Not surprisingly, as often happens, good intentions lead to bad results.

Therefore, your proposal of government dirigisme as a panacea in regards to competition and regulation is inutile, fanciful, and fallacious, and more perniciously may turn out to be a destructive force.

I rest on my oars: Your turn now

 

 

 

 

Dangers Lurking in Having a Big Heart for Refugees of Muslim Origin

May 24, 2016

By Con George-Kotzabasis

It is most unwise to have a “big heart” for refugees indiscriminately as one might finish-up with no heart for refugees at all, as Europe has presently shown by closing its borders. This is because its foolish politicians never asked the crucial questions, i.e., what is the cultural and religious background of these refugees and whether they would be assimilable to Western culture.

Presently, the heart of Europe is mortally threatened by two great implacable foes: By the peaceful enemy of demographics and by the bellicose enemy of Islamist terror. Just two examples: In Holland, 33% of children under the age of fifteen are Muslim; in the welfare bliss of Norway, there are Muslim enclaves where indigenous Norwegians are persona non grata. And one must not delude oneself that Islamist terror is an ephemeral threat or a rivulet within the Muslim mainstream; on the contrary, it is a powerful current that determines the course of the mainstream. Thus European humanitarianism in an adolescent rush of romanticism, embraced its beloved refugees only to find out that it had embraced its own destroyer.

The great Islamist scholar Bernard Lewis, predicts, that if this sinister trend of demographics does not change, Europe will be Muslim in seventy years, if it is not destroyed first by suicidal fanatics.

Australia also faces the same predicament, perhaps even in a more exacerbated form. With 250 million Muslims on its north and a sizable and ever increasing Muslim Diaspora on its land, and the possibility in the near future of a military conflict with Indonesia, it would become a lethal fifth column. In such a situation, Australia will hardly be able to prevent its decapitation by the myrmidons of fanatic Islam.

A grandmother warned that one had to be very careful where one put his loyalty and his genetic organ. It is advisable that humanitarian policy-makers on open-door non-discriminatory migration take notice of this grandmotherly precept.