Our fearless leader is at it again – APL Financial Director, Jon has had his educational response to Daniel Wild’s “Hayne is the green harbinger of more red tape” in the Australian Financial Review (10 Dec 2019) printed in Letters To The Editor today (12 Dec 2019).
To sum it up for you, Jon is giving Mr Wild a lesson in the flaws of the capitalist system and the need for red tape and regulation to prevent businesses from pushing risks onto others. But don’t let us tell you what to think – have a read of both and let us know your thoughts.
Jon’s letter:
Letters: Wild about Kenneth Hayne
Dec 12, 2019 — 3.00am
Red card for reduction of red tape
Daniel Wild’s “Hayne is the green harbinger of more red tape” (December 10) misses the point.
The article states: “At the heart of the government’s agenda is red tape reduction and a reshaping of the bureaucracy to better serve the interests of mainstream Australia.”
Surely, the Hayne royal commission showed why red tape and regulation is needed. Capitalist systems inherently reward those businesses that maximise price and minimise risk. Economists call this externalising risk by pushing risk onto employees, suppliers, customers, shareholders and into the future, which maximises short-term results. This process also maximises current managers’ bonuses to the detriment of shareholders.
Research by mathematics professor Bruce Boghosian of Tufts University written up in the Scientific American shows that without red tape and regulation, all the wealth will inevitably fall into the hands of the people at the top.
No doubt this would make the limited supporter base of the Institute of Public Affairs very happy.
Jon Griffin
APL Financial/Coventrees
Notting Hill, Vic
You can Daniel Wild’s article here: https://www.afr.com/policy/energy-and-climate/hayne-is-the-green-harbinger-of-more-red-tape-20191209-p53iar
