With cost of living rising in Australia are there any easy solutions to instantly get rid of it, not fully instantly however close enough let me explain.
Firstly would the government in Australia get rid of inflation if they could, you would expect they would right, absolutely no, inflation is a feature to a government as it is another tax imposed on the people. In other words they want it.
Below are some ways the government could reduce inflation almost immediately if they actually cared about Australians:
- Remove fuel excise tax, this is 43 percent of petrol prices, this would immediately reduce the cost of petrol by more than 0.60 cents. Australia has been one of the most expensive places to by fuel by this tax alone for a long time. In many ways fuel excise tax is one of the most immoral forms of taxation, as it is a tax on getting to and from work. Fuel excise tax can be removed within seconds by a simple vote in parliament. Will they get rid of it, probably not.
- Remove G.S.T. from food, this would remove 10% of the costs imposed on food, an essential for everyday life for all of us.
- Create taxation reductions for increasing supply of food for farmers, basically reduce taxation on farming, in particular farming that increases the supply of food, have a tier system where how much food a farm produces taxation is reduced. This would lead to larger profits for larger farm producers.
- All taxation removed from housing other than initial purchase and sale, making yearly rates optional and not mandatory for a property. Insurance optional, etc. If people want to pay for garbage removal, fine, make it optional, they can choose. Bring back ownership of property rights. This would reduce the cost of house ownership immensely.
- Encourage work or business rather than welfare dependance, the government loves having a large welfare part of the nation as they can buy votes easily before an election with fake promises, however welfare is a lifeline for going between jobs, not a income.
- Encourage businesses to produce more supply, businesses that do so should be treated as heroes, remember that if no one is making anything then there is no stuff or there is less of that stuff and prices will go up.
- Outlaw government counterfeiting, money printing is theft via inflation and is the worst tax as it is the tax that secretly taxes the poorest people in the country and benefits only those that have large amounts of assets or government. Basically ban any form of modern monetary theory, it is a theory and it has clearly failed everywhere it is uses, government should be run like any other business, if there is a lack of money for certain funding do not fund it, it is as simple as that. Using debt or any form of money printing taxes the poorest people as well as the next generation as asset appreciation outweighs natural wage growth.
In summary inflation is feature like I said in the intro, governments can get rid of it, however they pretend that they cannot, why because it benefits them, it is as simple as that.
Hopefully in the future people will come to there senses and realize you cannot get something for free, productivity and hard work is where value comes from and you cannot sit behind and print more of that productivity, it simply just does not work.
