Asset Sales

46 replies · 664 views

about 15 years ago · edited over 13 years ago

Are you guys economists (I know you aren't immigration lawyers)?

I love it when you talk all dirty and fiscally like!

(Maybe we should all read up on the Economists Can Never Agree Act of 1901)

I don't like to admit it, but yes I am.

Permalink

about 15 years ago · edited over 13 years ago

Not only that, but you run 5 business'!

Permalink

about 15 years ago · edited over 13 years ago

Whitby boy wrote:

1. Actually we are going down exactly the same path that lead to these and other countries having to be bailed out and implement austerity programs - however we are trying to address the problem before we get to that point.

2. You miss the point - electricity price increases reflect a lack of real competition. Whatever is done with electricity and other public assets must be conditional on the result being a competitive market place - failing that the market place will need to be regulated.

3. Obviously depends how much you sell it for.

1) Really? Our public debt as a percent of GDP is 25.5% (97th highest in the world). Ireland 98.5%, Portugal 83.25%, Spain 63.4% and Greece is 144%. Our external debt as a percent of GDP is 50%. Ireland is 1004%, UK 416%, Portugal 223%, Greece 167%, Spain 165%. Even Australia is almost twice us at 93%. We donï¿½t have much of a debt problem. If anything it is short term issues, that is trying to be fixed using a solution that has many long term implications.

2) That was the point I was making originally. These are (pretty much) monopolies. Why would you want to sell them?

3) So in my housing analogy, you would sell the house?

2ndBest2011-01-31 23:11:26

Permalink

about 15 years ago · edited over 13 years ago

2ndBest wrote:

Whitby boy wrote:

<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p>
1. Actually we are going down exactly the same path that lead to these and other countries having to be bailed out and implement austerity programs - however we are trying to address the problem before we get to that point.<o:p></o:p>
ï¿½<o:p></o:p>
2. You miss the point - electricity price increases reflect a lack of real competition.ï¿½Whatever is done with ï¿½electricity and other public assets must be conditional on the result beingï¿½a competitive market place - failing that the market place will need to be regulated.<o:p></o:p>
ï¿½<o:p></o:p>
3. Obviously depends how much you sell it for.<o:p></o:p>
ï¿½<o:p></o:p>

<o:p></o:p>
1) Really? Our public debt as a percent of GDP is 25.5% (97th lowest in the world). Ireland 98.5%, Portugal 83.25%, Spain 63.4% and Greece is 144%.ï¿½ Our external debt as a percent of GDP is 50%. Ireland is 1004%, UK 416%, Portugal 223%, Greece 167%, Spain 165%.ï¿½ Even Australia is almost twice us at 93%.ï¿½ We donï¿½t have much of a debt problem.ï¿½ If anything it is short term issues, that is trying to be fixed using a solution that has many long term implications.<o:p></o:p>
<o:p>ï¿½</o:p>
2) That was the point I was making originally. ï¿½These are (pretty much) monopolies.ï¿½ Why would you want to sell them?<o:p></o:p>
<o:p>ï¿½</o:p>
3) So in my housing analogy, you would sell the house?<o:p></o:p>

Australias debt as a percentace of GDP is 22.40.

If you are old and wise you were probably young and stupid

Permalink

about 15 years ago · edited over 13 years ago

^ This is how I normally see economic text books.

"Phoenix till they lose"

Posting 97% bollox, 8% lies and 3.658% genuine opinion.

Genuine opinion: FTFFA

Permalink

about 15 years ago · edited over 13 years ago

arf!

Permalink

about 15 years ago · edited over 13 years ago

This thread is actually one of the best summing up of the arguments I have seen.
Anyway thought I'd stick in my 2c.

There are some things only the state can or should do and the private sector cannot perform certain public tasks, as the privatisation of rail here and in the UK demonstrates.
It is my view that certain SOE's should not be run as private enterprises aimed at profit but should be run as public enterprises aimed at providing a good or service to the public at the minimum cost to the public, therefore without a profit motive.

The reason I am opposed to asset sales is because it will make this impossible and cause the opposite to occur.
As large foreign investors inevitably pick up large portions of the shares they will naturally be seeking greater profit and this will result in higher power prices and/or less investment in new technology and infrastructure.
(I know the Govt. will still own the majority share, but it is naive to believe that the Govt. is incorruptible or beyond influence from private economic powers.)

This form of privatisation is not more efficient and will not result in better power companies, it will cost the taxpayer and the state in the long run after the sale and the private investors will reap the profits as the state absorbs the losses and the investor reaps the profits from the taxpayers investment

At any rate I can hardly see why such a move is necessary, Our Govt. debt is not so great and we are trading a long term revenue generating asset for a short term gain, to be debt free a whole year earlier.

Personally I perfer Labours election promises of a tax free early income and a higher tax bracket for the super rich and I'm sure they will promise a larger increase in minimum wage then they will give, but one is necessary to keep up with inflation and the rising costs of living.
But then again, I'm a social democrat so what the hell would I know, I'm not even represented in parliament.asmodeus_822011-02-02 14:54:02

"Yellow Fever are fantastic – I have to say that"

Permalink