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July 14, 2019 - Freedomain Radio - Stefan Molyneux
40:26
The Fall of Australia - Coming Catastrophes in the Australian Economy
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Hi everybody, it's Stefan Molyneux from Freedom Aid Radio.
I hope you're doing well. This is the fall of Australia, or going under and down under.
Remember, the only freedom is freedom from illusion.
We'll be talking about that in this presentation.
So, you may hear a little bit about the Australian economy in the news.
It's considered to be a proto-Scandinavian economy.
It's doing well. There may be some problems here or there, but you don't hear much about those.
You might hear some monthly low in an obscure manufacturing performance index, maybe a graph or statistic on income inequality, but you don't hear about the reality of the cancerous status and its effects upon the Australian economy.
You know, one of the great and terrible things that happens when you study philosophy, reason, economics, and ethics is you understand, finally, that immorality is like physics.
When state power, when state predation, when counterfeiting through central banking, when increasingly selling off the unborn to foreign banksters through the form of national debts, wherever that shows up, you get the same plague, you get the same destruction.
It is not magic.
There's no place in the world where if you drop a rock, it falls up, and there's no place in the world where the state expands and things get progressively better over the long run.
It's the same plague that is devouring Europe and has obliterated the wealth of the middle class in the United States.
And wherever you see statism appearing to be sustaining, you know, it's like that, you know, maybe you've got some neighbor next door who spends all summer with his feet up by the pool and, you know, reading Daniel Steele novels and you're like, whoa, why am I working for a living?
That guy's doing great. But he's just piling up debt, which is going to collapse the state.
Governments of the West are eating up the future in order to bribe the dependent remnants of what was once proud culture in the West.
So let's look at government debt, the crushed middle class, and the terrible realities of the future of Australia.
Makes the chrysalids look good, I suppose.
So government debt to GDP. Now, for those of you who were used to, like, Greek-style numbers of over 100% and Japanese-style numbers of close to 200% or over 200%, this all looks not so horrendous, but, of course, the reality is it's gone up hugely during the recent recession, and anything you see in the future is...
All lies. I mean, you know, like in America, if they calculated the unemployment rate the way that they did in 1982, it would be over 20%.
If they calculated inflation the way they did in 1982, it would be over 10%.
So this is all, you know, when you see it go down here, they just assume that there's going to be cuts or that there's going to be increased revenue.
It's all just made up nonsense.
But it's definitely heading the wrong way.
So the public debt is close to $400 billion.
The population is a little over $22 million, and so the public debt per person is over $17,000.
The number of employed, $11.5 million, so the public debt per employee is over $34,000, and that's not good.
So what happens when the welfare state comes in, what happens when the welfare welfare state comes in in particular, is governments print money.
And in order to avoid the consequences of printing that money, which is that they're so heavily in debt that a one or two point increase in the interest rates would wipe them out of the financial universe completely.
They crush down interest rates incredibly low, which discourages savings, thus eating the future.
If you don't save, you can't invest in capital improvements, in capital equipment to improve your work of productivity.
So the governments crush down interest on the debt in the same way you'd love to get your visa debt interest down to one or two percent.
Governments crush it down using the power of central banking, the monopoly power of central banking, the violence counterfeiting of central banking.
They crush down the interest rates, which drives people to stop saving and start spending and drives housing bubbles and all other kinds of bubbles all over the place.
So, of course, you get a huge amount of debt.
Also, which we're really seeing now, the governments really began in the 1960s here, you can see the same pattern.
They began to do huge amounts of bribery, I'm sorry, social spending, I'm sorry, bribery in the general population, buying votes through the provision of freebies, And what happens is they then, of course, print money.
They crush down the interest rates.
People stop investing in capital equipment.
There's less money available for entrepreneurs.
So what happens is, and it's really quite tragic, what happens is your real wages begin to decline.
And this has been catastrophic in the U.S. And what happens when the real wages begin to decline?
Well, by golly, people just borrow to make up the difference in the hopes that somehow things are just going to turn around.
You know, like the half...
It's like watching the movie Titanic over and over again.
And like, this time, it's going to be different.
This time, I'm betting on Leo and Kate, both making it out alive.
Well, no one here gets out alive.
Increasing poverty rate.
A recent study conducted by the University of New South Wales in collaboration with the Aussie School of Social Services...
Acas demonstrated that 21% of Australian adults and over 26% of children live below the poverty line, and that number is increasing.
Now, I get the poverty line is kind of like a fruity thing that rises along with the general wealth in society.
But that sure as hell wasn't what was promised to us.
If you ever want, you know, for shits and giggles, you can go back in time and have a look at what was promised from the social programs of the 1960s and the 1970s and see how many of those predictions have come true, because it doesn't matter.
People will say whatever they can to get behind the iron bloody firewall of violence, right, through being on the receiving end of government printed or government stolen or government borrowed money, which is really three ways of saying the same thing.
Free evil! Every government slogan since the dawn of time.
They'll say whatever they can to let you just pass through that fiery wall to be on the receiving end of government largesse and then what they do doesn't matter because you can't change it.
In 1994, it was 7.6% living under poverty.
2004, 9.9%.
2006, 11.1%.
2012, 12.8% of significant poverty.
That is very, very important to understand what's happening.
So, manufacturing activity contracted for the ninth consecutive month in November 2012.
Only one of the 12 industries showed expansion, which was food and beverages.
Well, it is hot.
The weakest sectors fabricated metals, chemicals, and petroleum, and construction materials.
Well, wretched and tragic.
Retail sales fell for a third month in December, the longest stretch of declines in 13 years.
Same everywhere you look.
A census survey between 30 January, 21 February 2012 shows business confidence is weaker than at that time in the previous year, with 3 in 10 businesses worried about their prospects for the year ahead, including 1 in 10 that are extremely worried.
And this has a huge effect.
Not only does this eat the present, not only does this create problems in the present, but what happens is people look at the entrepreneurial life, which should be hugely attractive.
I mean, I was an entrepreneur for 15 years.
You don't all expect to be Mark Zuckerberg or Bill Gates, but you do hope that it's going to be kind of a fun ride.
And when you see a lot of people having no fun being entrepreneurs, it really does diminish We're almost 14% higher than the previous year and 10% higher than the five-year average.
For the financial year, total company collapses were 6,000 compared with 5,353 for the previous corresponding period, an increase of 13.4%.
The end of a business is unbelievably tragic and catastrophic for almost everyone involved.
It's like seeing a high divorce rate.
You see a lot of entrepreneurs having a miserable time and you see a very high incidence of bankrupt companies and what happens is it becomes like the men going their own way movement.
It's like, hmm... I don't know that marriage is really going to be for me, given how many divorces there are and what a wretched time men in particular have through that process.
Dun& Badstreet survey showed a disturbing trend of business failures in the past three years.
48% increase in the number of small businesses going bankrupt and a dramatic 95% fall in the number of small businesses starting up.
You see, this is what I'm talking about.
You have a kind of momentum from the free market that's really important to understand.
Like when you nationalize something, right?
So let's say you nationalize the healthcare industry.
Well, you get all the workers in there, doctors with like 30, 40 years experience.
They used to make in-house calls.
They're customer-focused, customer-centric.
They've got great relationships with their customers, with their patients.
They don't just immediately become, you know, socialist ass clown bureaucrats.
That momentum from the free market continues.
It's like something slowly going out of focus.
And a generation or two later, they've all been replaced by people who've never actually experienced the free market in healthcare, and they're just an entirely different kind of breed of people.
Like, why did NASA do so well for the first 10 years technologically?
They're getting to the moon and all that, and ever since then, it's like 30 years of that same old space shuttle, space shuttle, space shuttle, repeat, you know, while phones end up smaller than a pea.
Well, it's because the engineers who came into NASA at the beginning came from the private sector, came from the free market, and therefore they had all that work ethic, all that dedication.
Now, NASA, you've just got a bunch of career bureaucrats and they have all the efficiency of the DMV or, you know, a Saturday morning road crew.
Down in Badstreet's show in Australia, small business failures are growing 57% over the year among companies with less than 5 employees and 40% among those with 6 to 19 employees.
This is how everybody gets into the free market is through this process.
So it's really important to understand just how this eats away at the future.
Startups during December quarter fell by nearly 100%.
People just don't want to get into that when they see what's happening.
And this is a huge factor for youth unemployment, right?
I mean, if you can't find a job, make a job.
That's when I was younger. But now it's really not that easy or wise to do that in a cratering statist economy.
Now, okay, so this is a typical story.
When the government depresses interest rates in order to avoid the consequences of its own borrowing, it tends to cause a bubble in housing prices.
It's one of the things that causes a bubble in housing prices, and the same thing's going on, of course.
Is the housing bubble signs that the Aussie housing market is in a bubble?
So, Philip Seuss, a researcher, says, lastly, a classic sign of a bubble is the price-to-rent ratio.
The reason why this metric is often used in housing analysis is because debt speculation affects capital values, not rental incomes, right?
So if a whole bunch of people are assuming that their houses are going to be in this ever-whirly gig, kaleidoscopic, ATM-style spit-out cash forever because they're going up in value, that's going to happen not in apartment buildings, right?
Because people are going to be getting out of apartment buildings into houses on the assumption that the housing prices are going to rise.
So given that the denominator of rents tends to remain stable over time, it's the numerator that comprises the deciding variable.
So this is all slightly technical but important stuff.
So this is real housing price to rent ratios, and as you can see, it's pretty damn high.
I assume that this post-war, sort of late 1940s, 1950s thing was the post-war boom.
And as you can see, it's getting very high and therefore is indicative of a correction.
And the longer it goes up, the worse the correction tends to be.
So, a sharp jump of prices in 1950.
Oh, sorry, and this also followed a period of price controls during the war.
As a war measure, rents were fixed in 1939, and house values were fixed in 1942.
And then, right, this is another way they pay for war.
I told you, free evil. Inflation was considerable throughout the 1940s.
Price controls forced a real loss on homeowners.
Once price controls were removed, values quickly rose to more realistic levels, which is what happened after the war.
You know, the Second World War, particularly in Germany, but also to a smaller degree in England and to a larger degree in Russia, it's really important to understand that the Second World War was fundamentally against socialism, not just national socialism, but the socialism that was strangling the American economy, the German economy. The British economy, particularly America.
I mean, good heavens.
I mean, the amount of controls and subsidies and massive amounts of government interference in the free market, that was what caused the Great Depression and exacerbated it for 19 years, culminating in a world war, as depressions sadly often do.
The real victory was not over Hitler but over the, you know, infesting brain termites of socialist endless planners in the Western economies who tended to get blown away and a fair amount of free market reforms were passed or at least allowed to continue, allowed to come into existence and have an effect after the Second World War.
So, a leading U.S. real estate analyst, Jordan Wirth.
It says Australia's love affair with property is about to be tested amid predictions.
Prices will plummet by as much as 60% with Capital City's hardest hit.
He advises Fortune 500 CEOs and fund managers.
For land investments, they say even more speculative could plummet by as much as 80 to 90%.
Commercial property will also take a hit in line with the residential sector shedding at least 50% of its value.
Well, you can see that the commercial property is going to take a hit because so many businesses are failing.
So, please understand, these aren't my predictions.
I'm not telling anyone what to do.
I'm just simply reporting possibly the worst-case scenario.
50% overvalued.
Australian house prices are 50% overvalued, and we all know from the American example what happens when there's a correction in this kind of situation.
So the US Federal Reserve released a bulletin that nicely shows what happens when a housing bubble bursts.
US wealth has gone back to pre-1990 levels.
What took 18 years to create was undone in three.
And that's slightly imprecise language.
What, you know, the illusion of 18 years was destroyed.
You know, can you really destroy an illusion?
I mean, that's, you know, like trying to marry the mirror.
It doesn't really work. So...
But we can see here from the median net worth of U.S. families, I mean, it's just cratered.
And the median net worth doesn't count the national debt or the unfunded liabilities, which are 80 to 90 trillion in the U.S. So, it's no good.
So, U.S. housing prices versus net worth of families, this is analogous, right?
But when you get a housing price crash, you get a decline in family savings.
Net worth. A lot of people, again, as I said before, they make the mistake of looking at a house as an investment good, you know, like building a factory or something like that.
A house is not an investment good.
A house is a consumption good.
And so it's like trying to get rich by borrowing to buy cars that aren't going to be taxis.
You're just going to drive them around.
Well, that's just going to make you poor because you're borrowing for consumption because you can never become rich by borrowing for consumption goods.
And you can never, as a country or a civilization, become rich by borrowing for housing.
You can become rich by borrowing for investment in creating capital goods.
You know, like if you buy a computer and you use it to create a computer program that's of great value to everyone, that's an investment good.
If you buy it to play games, that's a consumption good.
There's nothing wrong with playing games, but you're not going to get wealthy by buying a really great graphics card.
Oh, I've tried. Household wealth.
And liabilities, percent of annual household disposable income, net worth dwellings, financial assets.
Again, these are just really important to understand what happens when there's a housing crash.
All of these things take a huge hit, and it seems that that's going to occur in Australia.
Ah, the young. 15,000 teenagers, 15 to 19, provided a snapshot of the mounting economic concerns among young people.
Around 31% of those surveyed listed the economy as the most important macro issue up from around 20% last year.
I guess they're over Y2K and they've figured out the nonsense of cold global warming.
This is important on so many levels.
You know, middle-aged people, myself included, middle-aged people in general have some anxiety about the young because, you know, when you've got, you know, wife, kids, house, as I have...
It seems like they have me, then you simply can't compete with some 18, 19, 20, 20-year-old whiz kid who's willing to put in 80 hours a week because, you know, all they've got is jolt colder and porn.
So, yay, you know, they work super hard and you simply can't compete.
Now, you have hopefully a little wisdom, a little common sense, some experience and so on that can counteract it, but a lot of people are quite interested in keeping the young out of the workforce, which is one of the reasons why youth unemployment is the worst.
So this is pretty significant.
Society, at a very macro level, my friends, society has a huge problem, a monstrous massive problem when it can't bribe the youth into conformity with culture through jobs and income.
Because the whole deal is, you know, obey these cultural idiotic rules and we'll give you the goodies of, you know, white picket fence, a dog house in the suburbs and all that kind of stuff.
If society cannot enforce compliance to culture through economic bribery, in other words, if there just aren't the economic goodies to hand to the children, to the young, to the youth, the youth no longer are invested in that culture, and dear God, there's a change, and it is not often for the better, though I'm certainly and many others are working to try and make it as positive as possible.
The system has to change.
An old but true statement is that which cannot continue at some point will stop.
It's embarrassing to even have to say that in terms of a debt-ridden, economic, fascistic, crony capitalist or crapitalist culture, but the reality is it's going to end, it's going to stop.
We want something better to take place, something freer, something less coercive, something less manipulative, something less false.
But if you can't rope in the youth, your system's going to change pretty damn quick.
Mission Australia's National Manager of Research, Bronwyn Dalton, commented, in last year's survey, concern about the economy wasn't even in the top three.
This year, it's easily the most pressing national issue on the minds of young people.
You know, the failure to launch, failure to launch, it's just there's nowhere to land.
There's nowhere to go. Almost 39% of the youth surveyed were working part-time in an indication of growing youth unemployment.
Over 34% were not in paid employment, but were looking for work.
So you can't start your own business, too many regulations, too much risk, too little capital available because the government is crushing down interest rates and nobody's saving.
And the government is hoovering up all the capital to bribe off the voters who've become dependent on the government or at least the previous governments.
Youth unemployment as of September 2012 was 25.1%.
It's horrendous.
A number of Australians saying they're very concerned about the economy has increased, doubling from 11% in 2011 to 20% in 2012.
Australians living in labour-held electorates who are very concerned about the economy doubled from 8% to 16% from 2011 to 2012.
13% of people in those electorates are finding it very difficult on their current income, up from 9%, so 9% to 13%.
The environment listed last year by over 37% as the most important national issue fell to 17.5% this year.
Anything which destroys wealth is going to destroy the environment in the long run because environmental protection requires some excess wealth.
So to think that you can somehow save the environment by harming the economy is ridiculous.
Mission Australia surveyed financial uncertainty's heightening stress among young people.
40% of respondents said they were either very concerned or extremely concerned about coping with stress, up from 20% in 2008.
Council of Australian Governments' percentage of youth studying, working or training fell from 76% in 2008, 72.5% in 2011.
Australian median capital city's constant quality real housing price index.
That is the worst name for a punk band I think I've ever seen in my life.
So here you can see, again, 1950s and so on, with the start of the 1960s, 1970s of the welfare state, you can see that housing is becoming ridiculously unaffordable.
You know, since the 1950s, it has gone up just crazy amounts.
I mean, this reminds me, personal story time, this reminds me of many years ago, I went to a dinner party and talked to a teacher.
I use the term loosely since he did work for the government, but I talked to a teacher who said that in the late 1960s in Toronto, he lived in downtown Toronto, which is like the New York of Canada, and he was making $6,000 a year.
No, no, he was making $9,000 a year as a teacher and he could buy a house for $12,000.
I mean, it's astounding. I mean, you know, 25-30% more than his income was the price of a house, and teachers make sort of $60,000, so it'd be like being able to get a house for $80,000 to $90,000 in Toronto.
You can't get a house for much less than a million in Toronto these days, so it's all quite mad.
And it's nothing to do with housing, it's just to do with the crazy games that governments play with their gun control monopoly fiat swipe currency matrix.
Australian Institute of Health and Welfare reports the number of households experience moderate housing stress when 30% or more of gross household income is allocated to accommodation from 900,000 in 1995 to over 1.4 million in 2010.
Households in severe housing stress, 50% or more, went from 300,000 to 460,000 in 2010.
The waiting list for public housing, just in three years or so, went from 177,000 to over 200,000.
Electricity disconnections increased 33% in gas disconnections by 50% in the state during 2012.
David Heaps, the Commission's chief executive, commented that the majority of disconnections are of customers who are struggling to pay their bills, not skippers or movers from a residence.
It's like watching the West fall back in time to a pre-industrial revolution.
Well, that's when the state was even bigger, so as the state grows, we all kind of move backwards in time, like Germany went all medieval when the state grew, unfortunately, with 20th century weaponry.
A potential major cause of the high housing prices, the Reserve Bank of Australia and banking regulators are being warned by Moody's Investor Service that low interest rates could reinflate a property bubble, leaving the economy more vulnerable to a crash.
So, the low interest rates are set by the government, of course, right?
When you control currency, you have to control interest.
Otherwise, interest rates will punish you for inflation and therefore borrowing to bribe voters doesn't work.
Predation is on the rise.
Carbon theft. So, the government's official carbon targets.
This is all the global warming stuff.
And even if you accept the global warming, even if you accept anthropogenic global warming, I mean, just read Bjorn Lomberg.
He's been on the show. Read Cool It by Bjorn Lomberg.
Even if all the targets are met, even by the scientists' own estimates, the government scientists' own estimates, there's almost nothing to change the temperature in 100 years.
It's all, you know, what lie do I have to tell you so I can increase your taxes?
It's got nothing to do with actually achieving something.
So they want a 5% reduction in emissions below 2,000 levels by 2020.
500 of the highest producers will be taxed for every ton of carbon pollution they produce.
Carbon tax will cover around 60% of Australia's carbon pollution, including pollution from electricity generation, stationary energy, some business transport, waste, industrial processes, and fugitive emissions.
You know, it's only sort of post-industrial societies that can worry about this kind of pollution.
You know what's real pollution is having to burn fires in your own hut, which kills millions of people around the world every year.
The carbon price will be fixed like a tax for the first three years, an emissions trading scheme, blah, blah, blah.
And on July 1st, the price will be Australian dollars, 23 per ton, 2.5% per annum in real terms, and so on.
Al Gore is heavily involved in this stuff, right?
I mean, his movie about global warming was just a way of upping the value of his investments.
Anyway, so $71 billion collected by the government in the first six and a half years of the Australian carbon tax.
Right? Whoever's unpopular, right, will just be the one who get taxed or harassed the most, right?
Used to be Jews. At one point it was blacks and they always make them slaves.
And now it's just carbon and carbon producers and polluters and big corporations and capitalists, none of whom can pull a gun on you.
The government will pull a gun on you if you don't pay them, right?
Microsoft is never going to come to your house and arrest you for not buying Windows.
It's never going to happen. It is only the government that has this power in society.
So every time the government points at a scapegoat, they're pointing with a gun to a scapegoat who's cowering in a corner.
Let's not lose sight of that basic reality.
Corporations can't do a damn thing to you.
They don't have any armies. They don't have any military other than the ones which the government pays for, like Blackwater and Halliburton.
These are not free market entities at all.
These are mercenaries paid for by the government.
So the carbon price is going to increase the cost of living, and this is yet to hit.
It's going to be a terrible effect on the Australian economy.
500 bucks a year, and that's what the government has estimated, which means the government estimates are typically two to five hundred percent lower than expected, often far higher.
So it's going to be a thousand to five thousand dollars a year, most likely that's going to be taken out of the average household and To minimize the effect on the cost of living, the government has announced an assistance package for the household at about the same rate.
However, last month, the Australian Retailers Association, 80% of Australian retailers say their business has been negatively affected by the new carbon taxes in place in that country since July of 2012.
So... Dual income with two kids will be almost $400 a year worse off.
And I assume that that's a very low estimate, but I'll put it out there as the numbers that we have.
So by 2014 to 2015, the carbon tax could force eight black coal mines to close, and coal production could have declined by almost 20%.
Over 4,000 jobs lost.
The impact on the overall economy is over 12,000 jobs lost.
These estimates include only losses from premature mine closures.
There will be more employment losses from operating economies made within surviving mines, right?
So in order to pay for the tax, they have to cut something.
I mean, I don't know if you've ever run a business, but generally they operate on pretty razor-thin margins, like a reasonable profit is 3% to 6%.
And so if you're jacking up 5% taxes on companies, they have to find that money somewhere.
And they can, to some degree, raise their prices to local consumers.
But if there are people who can import energy or coal, then that's going to be a problem.
Then they have to raise tariffs to those people, which raises the price for everyone.
And they also have to fire people.
So total impact reduces GDP by 0.4 percentage points, boost inflation by about 1% in 2012 to 2013.
For the sake of doing nothing to change, virtually nothing to change what's going to happen in 100 years with the temperature, even if you accept all the made-up modeling that occurs in government institutions funded to scare people.
The poorest 20% and the richest 20% of the population in Australia would have to pay an increased tax of 2.4% and 0.8% of total spending, respectively.
The average household have to pay an additional tax of 1.4% of total spending.
And, of course, the carbon tax burden always falls on the poor.
Almost all taxes are regressive.
Okay, so the gap between the rich and poor is increasing.
Inequality is on...
The rise. So this genie coefficient, it sounds magic.
It does sound magic. So everybody has the same income versus everybody has different income and so on.
But there's nothing wrong with different income.
Some people want to be monks, some people want to be rock stars, and maybe both achieve their goal.
There's nothing wrong with differences of income at all.
This is during a time when government redistribution through the welfare state, through education, through social security, through unemployment insurance, whatever they're called over there, they're supposed to be closing this gap, right?
So the fact that the gap is increasing is pretty significant because that's the opposite of what the government promises.
Shocking. Wait a second.
Could that be right? Government program achieves the opposite of its stated goal.
I can't imagine it.
Can't happen. Couldn't happen.
Australia is becoming more unequal.
The bottom 20% losing out to the top 20%.
Changes are relatively modest.
And it went from this Gini coefficient, from 0.3 to 0.331.
So income inequality in Australia is increasing, and that's an important thing to understand.
Federal government employee costs surged from $18.69 billion in 2007-08 to $24.7 billion In 2011 to 2012.
I mean, this is a rise of almost...
It's over 32%.
So I was trying to convert that to a third.
That doesn't mean much. But, yeah, almost a third grader.
So, yeah, over 32% increase just in a couple of years in employee costs.
So they've decided to increase the rate in which they catabolize the retiring rich.
New 15% tax of earnings over 100,000 in the retirement phase.
Saves 350 million, which it won't because it just will dodge it.
100,000 thresholds for taxation of superannuation.
Income will be indexed.
16,000 individuals, about 4.4% of Australia's projected 4.1 million retirees in that year.
I mean, they try this all the time.
We're going to jack up taxes on the rich and the rich just end up moving or going somewhere else.
So Tony Abbott, leader of the opposition house, said the government was raiding people's retirement savings to fund its own excessive spending.
I mean, this is important, right?
There's no money in the Social Security.
It's just a bunch of treasuries, which are dusty old IOUs, like vampire bats, festering on the necks of your children or grandchildren.
So this is the last frontier, right?
And they've already tried this in Cyprus, and they'll just continue.
You understand these are just a bunch of people.
They're just desperate vampires, and the sun is coming up.
I mean, no villager is safe.
This is a billion-dollar hit on people's retirement savings.
It's a billion dollar hit on savings that belong to the people, not to the government.
Theft.
Sure, of course, once he gets in power, he'll do exactly the same thing, but like Obama, he's all kinds of anti-war, anti-excessive spending when he's getting to power.
It's just the lies that, you know, "I'll call you in the morning, I won't come in your mouth," all these lies.
Just can't believe them by governments at all.
The government expanding at a tremendous rate since the election of labor in 2007.
The Australian Public Service has grown by just over 13,000, or 8.4%, according to the latest official figures from November 2012.
Judith Sloan, an economics editor, writes, the LNP government was planning to cut 1,500 jobs in health.
Gosh, I thought, 1,500 jobs?
That sounds like quite a lot.
So I decided to find out how many people are employed in Queensland Health.
The answer is more than 80,000.
Annual natural attrition would account for more than double the proposed job cuts of 1,500, which represent a mere 1.9% of total employment.
But here's the rub. A decade ago, employment in Queenston Health stood at 49,000.
So in 10 years, there's been an increase of more than 32,000 employees, an increase of two-thirds.
And this is the typical story, right?
Everybody says, draconian cuts, savage cuts, cuts to the bone, blah, blah, blah, right?
And what you find out is that the government is attempting to roll back spending to where it was about two and a half years ago, when, as far as I understand it, human beings were not regularly immersing their babies in lakes of fire.
Whereas the number of nurses in effective full-time terms increased by 65% over the decade, the number of managerial and clerical staff rose by 103% during the same period.
15,000 managers and clerical staff in Queensland Health.
Queensland's population has grown over that time, that's true, but the growth in the health staff has been well over two times higher than the growth in the population.
And of course, you know, the media, particularly in Queensland, has been making much of the supposedly savage job cuts being implemented by the LNP government.
I mean, the media is just this, you know, it's the opposite of the fool in King Lear who says thou shouldst not have been old before thou were wise.
The media is goading.
They're like the little evil gremlin that goads on the psychopath to finish the job.
The government has continued to expand.
The total number of so-called ongoing employees in the Australian Public Service increased by 42% over that period since 1998.
22% rise in the nation's population.
In the final five years of the Howard administration, 2002 to 2007, the size of the public service jumped 28%, with executive ranks up 49%.
And the moment you get people working for the government, I think, just sort of personally, given the pictures of public sector union employees, your health costs are going to increase a little bit when they retire as well.
They don't seem to be the healthiest people in the world.
Bureaucracy of government is expanding massively.
Australian public service, top-heavy, 45,000 officials or 29% of all permanent employees now classified as executives.
Tasty. One manager for every two and a half ordinary workers in the federal bureaucracy.
So there's the cost, and then there's the cost of interfering with them as well, right?
Interfering with the workers. Since 1998, the number of middle managers as EL1s and EL2s jumped 132%.
The elite three-grade senior executive service has expanded 78%.
Good for them.
Number of permanent public servants has grown by 10,440.
So... It's just mad.
If the number of senior executives and middle managers remained at 2007 levels, not that long ago, the annual salary bill would be over $1.3 billion less than it is today.
So this is the same story, right?
You get people in the government and they start to vastly outstrip.
They hold a monopoly and the media loves the public sector employees and hates the private sector employees because most of the media has unionized themselves.
Average weekly total cash earnings for all employees were higher for employees in the public sector, $1,300 and change, then the private sector $1,000 and change.
23% more money goes to the public sector.
Private sector employees comprised 80.4% of all employees, just under 20% for the public sector employees.
And that doesn't count all the benefits.
Budget figures reveal since labor came to power in late 2007, the cost of public sector salaries has risen by an average of 7.7% a year.
The bill will jump 8% in this financial year alone.
So an expert in public administration points out there was a blowout in the amount spent on public servants across the past decade at 8.7% a year.
3.5% was attributed to the number of employees and 5.2% to growth of wages.
Well, of course. I mean, if you're a politician, once you have a monopoly on your hands, and the politicians now, the current politicians, they inherit all these monopolies.
They didn't create them. What are you going to do if they go on strike?
Well, the media is going to turn against you, you're going to portray it in a horrible light, and then people will play ding-dong, the Wicked Witch is dead when you die in England at the age of 87, as Thatcher did.
I'm sorry. So Commonwealth wages and salaries, you can just see these numbers going up through the roof, and the number of public servants just going through the roof, and so on.
Public sector employment versus population.
And again, as you can see here, it's just increasing.
And this is, you know, this is only 20 years.
Sorry, not even 20 years, about 15 years.
So up and up and up, and this is completely not sustainable, of course, right?
So federal, state and territory governments expect the combined bill for employing their workers to grow by 10% over the four years to 2015 to 2016.
And of course, the last four years has been 31.2%.
So why are they expecting it to be lower?
Because all the numbers are made up and everything is nonsense.
I mean... You might as well look to Pravda circa 1960 under Stalin, or I guess 1950 under Stalin, for a cogent economic analysis of the United States.
Ah, a massive success in another five-year plan!
All the chocolate you can eat, just none around you, but just over the hill there's more chocolate.
So again, just limit your media, I would say.
Except for this, yeah. Call it trunus, hopefully.
So anyway... Australia is going to experience some challenges, of course, right?
I mean, the reason I'm doing these is because I'm a slavish marketer to my fourth largest demographic.
But just to point out, I've done sort of Europe and America and the Scandinavian countries and so on.
It's the same everywhere. Increases in government, increases in coercion, increases in falsehood, increase in delusions, in delusions.
Where people, you know, facts become like tasers to people's brains.
I mean, this is catastrophic throughout the world and all over the place.
There's no place where you can find the continual success of violence in any way, shape or form.
It is like expecting communism to work.
It's like expecting slavery to work.
It's like expecting rape to produce love.
At some point, you can simply like praxeologically assume it to be an axiom.
That coercion will fail in the long run.
And here we see a slightly rewound version of the U.S. and of Europe, but a failure, an incipient failure nonetheless.
As far as I heard it recently, Australia is thinking of going off the U.S. dollar, which is going to be something they can try to do to save their economy.
But the reason I'm sort of pointing all this out is that it's the same everywhere.
And compared to what we were promised when we handed our souls to our masters, it is a pretty pulsary return.
There's been some bribery.
There's been some relief from reality.
But dear God, it's coming back with a vengeance.
Stefan Molyneux from Freedom Aid Radio, thank you so much for watching and listening.
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