“Fragile supply chains, growing threats to national security, the energy transition and the cost-of-living crisis have each demanded action by governments – and for good reason. But when you lump them all together, it becomes clear just how systematically the presumption of open markets and limited government has been left in the dust.”
This is The Economist in early October, paywall.
They are right. The scale of geo-political challenges alone requires unprecedented government direction of supply chain security and investment.
But The Economist also remains right to champion well-regulated interdependent markets.
These markets out-produce command and control economies and beyond them, trade-blocks. Especially in tackling challenges of the scale of climate change and AI.
There are recognisable parallels with Australian domestic politics.
Governments must set the rules but not be the market.
We need a concerted pro-prosperity mindset across our parliaments.
This should not and will not stop us raising the necessary revenue to run a functional and cohesive society.
Both important things can happen at the same time.
They just have to be top of mind.
ThinCap advocacy continues
Previously on ThinCap advocacy:
- If the Treasury Laws Amendment Bill 2023 cannot be improved, 150,000 build-to-rent apartments, and the government’s 1.2 million homes by 2029 target, hang in the balance
- This month’s Senate Committee ThinCap report mentioned the Property Council 73 times and agreed with us that Schedule 2 of the Bill be passed subject to technical amendments foreshadowed by Treasury that “better accommodate trust structures, and the function of debt deduction creation rules and the critical anti-avoidance impacts they will have”.
The strong advocacy work of our Capital Markets Division continues, based on feedback we have received from many of you, as we review the recently revised changes for Schedule 2.
We will be heavily engaged in Canberra over the coming fortnight on this.