Sunday, July 01, 2012

Day 1 - So far it Works!!

Lovely spring day today! Birds chirping, warm sunlight. Mine Host strolled barefoot in the garden, basking in the warmest & most pleasant day in weeks!

Obviously Mother Gaia is pleased about the carbon tax, and is smiling upon the world!

In other carbon tax news, this site has been blessed by the economic insight of James, who in yesterday's comments provides the valuable suggestion that Mine Host may wish to consider some equipment maintenance.

Gee, why didn't I ever think of that! Maintenance! Who'da ever thunk it?

Guru James suggests also that having the living daylights slugged out of you financially (the carbon tax) will "incentivise" (now there's a word for you) one into an "upgrade" of equipment. James, clearly more a believer in the "stick" than the carrot, makes no mention of where the money will come from for said upgrade.

Nor does James provide any insight into a source for the money for his next bright idea: "New Equipment which uses less electricity".

James hasn't thought this one through.

Mine Host knows where this money comes from:

Yep! Price Rises.

Price rises are how businesses (including the Wayside Tavern) will fund the extra costs caused by the carbon tax. Price rises are how the supplier discussed in yesterday's post, and his suppliers, will fund these things.

Somebody has to pay. It will be the final consumer (and can only ever be).

Australia is about to start sending hundreds of millions, perhaps billions of dollars overseas, to purchase fresh air.

This concept, called by the govt "buying carbon credits" is known elsewhere as a "gift to an overseas country".


Boy on a bike said...

Had dinner with a bloke last night who explained to the entire table how the tax will feed into his supply chain. Between the company that manufactures the stuff he retails, there stands a myriad of suppliers, distributors, wholesalers and transport companies. Their costs at every point in the supply chain will be going up. He reckoned a 3% in the price at the factory gate will be 10% by the time he flogs it to his customers, because everyone along the line has to add in their cost increases.
Of course a lot of customers won't wear a 10% price increase, so he's prepared for his business to be hammered.

RebeccaH said...

If you raise prices, then of course you're just a greedy one percenter, because as every good socialist knows, if there isn't enough money you just print more.

Right, James?

JeffS said...

"Incentivise" sounds an awful lot like "collectivise", a/k/a collectivism, which of course is tightly linked to socialism. And Communism.

Imagine that.

mojo, Unrepentant Yank said...

Businesses don't pay taxes - customers do."