Pay Less for Longer

The government has just announced a financial package to 'ease the cost of living crisis'.

It's hundreds of million of our dollars being channelled into ideological schemes that will benefit a relative few.

The focus of the $206 million dollar NSW / Federal government initiative is to install solar panels, insulation and other energy efficiency measures in (mostly) public housing in NSW.

There's even going to be a 'community battery' plan, whatever that is, which they promise will shave $600 off of some people's power bills. That's instead of delivering a promised $275 reduction for every Australian.

Neither will be delivered because they results are of the ' it would have been much worse if we didn't act' political promise variety.

The one thing no-one is saying is that this is all part of a plan to appear to be doing something to reduce electricity bills which have risen because of successive government electricity policies.

It would be cheaper, easier and much more efficient to undo the existing policies and let the market provide the cheap and reliable electricity service we used to enjoy.

Of course that was before the renewable energy boondoggle that has enriched the promoters as it leaves the rest of us poorer.

This latest torching of taxpayer's money is hot on the heels of the Prime Minister insisting that Woolworths and Coles cut their prices by 20 per cent.

It wasn't that long ago that the politicians were insisting that Coles increase the price of milk because it was being sold too cheaply.

Now Albanese has announced a review into the voluntary Food and Grocery Code of Conduct amid allegations that the supermarket chains are making too much money.

How much is too much is always the unanswerable question. A couple of years back they were accused of selling produce too cheaply and now it's too expensive.

One can never claim that political opportunism is consistent and principled.

Australia's supermarket chains do enjoy some of the highest margins in the world. That's a result of a couple of dominant players who play very tough with suppliers and consumers.

The market solution is more competition and fewer barriers to entry.

Unfortunately, the government shows no sign of encouraging new players into the market.

I'm convinced they are looking to hollow out the small business with a plethora of regulations and rules that make running a small business a nightmare.

Every red, green, black and blue tape applied to business, can easily be accommodated by the multinationals but breaks the back of the independent retailer. They force retail prices to rise and competition out.

And it appears that is the plan this government has.

Big government now loves big business. They work hand in glove together to manipulate public opinion and push agendas and policies that work against the rest of us.

There's no doubt we have a cost of living crisis in this country. Australia is one of the most expensive places to live. The cost of housing, utilities and healthy food are outrageous and out of the reach of many regular people.

But when you dig into the real reason behind it, the cause can always be found through the action of government.

If you want to pay less for longer, we need less government and more competition.

"The government solution to a problem is usually as bad as the problem."
Milton Friedman