Nyd Designs

Not Ordinary

You are who you hang out with James

James Altucher writes a fairly well known blog. I’m not posting a link to his blog, google his name if you are that interested. I followed Altucher’s blog for some time. I’ve recommended it to some people in the past. Much of what he speaks about in his blog I’ve found quite useful. I’ve adopted his ‘ten ideas a day’ exercise for some time. It’s a very useful practice. 

Sadly, a little while back I shifted my stance on the usefulness of Altucher’s work. This was for two reasons. Firstly, the quality of his work sharply diminished with a number of his posts amounting to little more than a ramble. The real deal breaker though was when he started to talk up Tucker Max.

Tucker Max is an embarrassment to the human race. Once again I’m not going to post a link to his website. His ‘work’ can be easily found with a little research. To surmise his contribution to humanity, Max has published a couple of books which detail some of his sordid life experiences. He made a movie which received very poor reviews.

Max’s work has been labeled ‘fratire’. Apparently Max distances himself from the term as he was never actually a member of a fraternity. His work centers on the telling of stories, most of which are degrading. The humour is juvenile. His work is considered offensive by many. Considering its content it’s very difficult to argue that it isn’t quite deeply sexist.

Now I’m a huge fan of juvenile humour. But I’m not a fan of Max. Below are some quotes from Max.

 

 I actually am a narcissist, very much so. My world revolves around me.

“I’d rather mainline Drano than listen to another minute of your whore prattle.”

“Your gender is hardwired for whoredom.”

“I don’t like her because she’s a negative fucking bitch, not because she has tits.”

“Fat girls aren’t real people.”

“We can’t all go after the girl with low self-esteem.”

"Get away from me or I’m going to carve a fuck hole in your torso.”

“I want to shoot every one of these bitches.”

I’m not sure how or why James Altucher, who seems like such a reasonable guy, would support this trash. But he has and continues to do so. Max’s work seems incongruent with Altucher’s messages and I think that’s what upsets me the most. If Altucher believes what he is writing, then he should absolutely not be supporting a guy like Tucker Max.

I think it’s likely that James Altucher is not genuine. I think most of his ‘ideas’ aren’t his. I think it’s likely that everything worthwhile in his blog is somebody else’s idea. Sure he should get some credit from representing these ideas but I’m not rating a guy who rates Tucker Max which brings me to the last theme in my post. 

It’s been said in the past that you are who you hang out with. This has been said by many people in many different forms. I have no idea who said it first. I’ve believed that you are who you hang out with for some time now. The people in your life really can bring you down, particularly if they are negative or encourage poor behavior in you.

So while it’s important to accept that we all have our own flaws and idiosyncrasies, it’s equally important to distance ourselves from those who would bring us down. From those who treat others poorly. From those whose thoughts and ideas encourage harm to others and lastly to those who would impinge on others human rights.

Lastly I’ll conclude this post with another well-known truism. That people can change. If Tucker Max apologized to those people he’d mistreated in the past and changed his behavior I’d be willing to change my stance on him. Everyone deserves that opportunity.

Western Secessionism

I’m West Australian and West Australians are a proudly parochial bunch. Our distance from our fellow Australians in the east is probably the greatest reason for this. When New Zealand was invited to join the Australian Federation they declined on the basis of distance amongst other things. As Perth is farther from Canberra than New Zealand it does raise some questions as to why we joined in the first place.

The ‘Brisbane Line’ also contributed to Western Australian parochialism. The Brisbane Line was a contingency plan to defend Australia if the Japanese invaded during the Second World War. It entailed abandoning the north and the west to hold a line that ran roughly between Brisbane and Adelaide until help could arrive from the Americans. Whilst there is some conjecture as to the existence of the plan, the consensus amongst historians is that such a plan did exist.

One of the key reasons for Federation was the need for mutual defence. Because of this it’s not unreasonable that many West Australians are somewhat resentful that our fellows in the east planned to just abandon us in the event of an invasion. Surely those in the east can understand that?

So from time to time, some groups in the west talk about succeeding from the Federation. In recent times Norman Moore has been the most high profile public person who has publically adopted a pro–succession stance. The majority of West Australians however are quite happy to remain a part of the Australian Federation. I quite strongly believe that under the current conditions Western Australia should remain a part of the Federation. 

The most recent trigger for the talk of succession has been provided by the latest proposed distribution of the goods and services tax (GST). The GST is distributed amongst the states based on a fairly complex formula and right now that formula suggests that for every dollar of GST revenue which Western Australia collects, we should receive just thirty cents with the other seventy cents being distributed amongst the other states.

Predictably the Western Australian Premier and Treasurer strongly disagree with this distribution. The Premiers thoughts are fairly well represented here: http://www.themercury.com.au/news/breaking-news/gst-freeze-good-but-not-enough-nahan-says/story-fnj6ehgr-1227301736938. The treasurer’s view and response to an initial peace offering from the Federal government is here: http://www.skynews.com.au/news/politics/national/2015/04/13/nahan-says-gst-freeze-good-but-not-enough.html. In short they are suggesting that we should ‘actively resist’ the policy and perhaps have our own version of the Boston Tea Party. Heady stuff indeed but it’s also completely ridiculous.

To compare the current situation with the Boston Tea Party is a poor comparison indeed. When the Americans had their little tea party they were protesting about taxation without representation. West Australians have representation, fifteen of them in the House of Representatives and twelve completely unrepresentative swills in the Senate.  

This does not however mean that the concerns of West Australians are without merit. When the GST was initially proposed and implemented none of its authors, or State Premiers who agreed to it, could have foreseen one States share of the pie dropping so low. Further compounding the concerns of West Australians about what seems like a very inequitable situation is the response of those in the east to this issue.

Mr Jerico has been particularly vocal on this issue as the two offerings below illustrate.

http://www.theguardian.com/business/grogonomics/2015/apr/13/colin-barnetts-gst-rhetoric-is-finding-blame-for-was-shambolic-budget

http://www.abc.net.au/news/2015-04-15/jericho-western-australia-going-it-alone/6393196

Jerico talks about Western Australia being ‘propped up’ by the rest of Australia for much of the last hundred years. On balance that is true. It’s also true that many of us here in the west do not appreciate it, we should.

However – when Jerico notes that a short time ago WA was receiving more than it would expect due to its population size he really is conflating the issues. Sure he’s technically correct but over the sixteen years of the GST this has occurred three times. That’s hardly a broad tread and obviously not the norm. Furthermore to compare receiving 1.04 cents for every dollar, which is a marginally higher amount per capita – with just thirty cents out of every dollar per capita is just absurd. Once again if the Premiers thought that could have ever been possible then none of them would have agreed to the GST in the first place.

Then Jerico notes that for much of the last sixty odd years Western Australia has been getting a ten or fifteen percent share of grants when on population Western Australia should have expected seven percent of the total share of grants. That’s a gap of two to seven percent. To compare that gap with the seventy percent gap in GST revenue between what West Australia now gets and what they would get if it their share was derived on a per capita basis is a remarkably poor comparison.

Compounding these fairly obviously flawed economic comparisons is this utterly ridiculous view that the concept of Horizontal fiscal equalisation (HFE) is somehow an intrinsically important part of our federation. What – Utter – Bunk.

The concept of HFE is a relatively new one. No-one cared about the equalising the level of services between the states in 1900. Initially the federation was proposed to manage key areas such as defence, transport, trade and foreign affairs. That’s was it. Gradually it has morphed into more than that. The idea that HFE is some ‘integral part of our Federation’ is twaddle.

It’s clear that Jerico, and a number of other journalists, have missed the central concern of most Western Australians. On balance I think most West Australians are happy to contribute a higher proportion of their GST to assist the States that don’t have the natural resources which Western Australia has. That level of assistance though should have some kind of limits. Limits that stop one State from getting a very raw deal.

If those limits are not in place then there exists the possibility that in the future the very structure of the Federation could be compromised. Right now it makes little economic sense for Western Australia to secede. But that is right now. Circumstances change. Unless there are some limits to GST redistribution in place then how could we be sure that at some point in the future it might not make economic sense for Western Australia, or another State, to stay with the federation?

The most vacuous amongst us fail to recognise this. It is just these types of failures that can, and in an uncertain future often do, lead to the worst kinds of difficulties for Nation States. The rules governing GST distribution need to be amended. Failure to do so will result in secessionist types of movements gaining momentum and that would be a terrible outcome for us all. I can’t imagine not being Australian. I imagine people in Virginia couldn’t imagine not being American until they were suddenly Confederates in 1861.

Slowing the Knee Jerk

Farewell Campbell Newman. I’m happy to congratulate nearly anyone who is elected to our Parliament regardless of their political views. Very few people acknowledge what a difficult job it is and the media further obfuscate the challenges involved in managing our nation and the individual states within it.

After his demise the media and politicians began the process of picking apart what went wrong for Newman. The consensus seems to have settled on three areas. Newman’s confrontational leadership style coupled with his government’s austerity policy and Queensland voters wanting to punish the Federal Liberal Government by expelling a State Liberal Government.

Of those three Newman’s confrontational nature is hardly worth mentioning as I’m not sure that his leadership was confrontational. Rather I think his governments cut backs were confrontational and that’s really what caused the anger. I suppose that’s what you get when you fire sixteen thousand people.

Compounding the cut backs is the Australian people’s fairly solid recent history of turfing out one of the major parties at a State level when the same party is in charge at a Federal level. Whilst so many of the barbs against the Abbott government have failed to stick the ‘Queensland result’ probably will do some damage to the Federal Liberal Government as it is now the second first term State Government given it’s marching orders in the last twelve months.  

What I find particularly concerning about the result is that this was the second enormous swing in a row for Queensland. The other swing delivering the Liberals government with a historically high majority and reduced Labor to a seven member caucus. It paints a disturbing picture of an electorate which is deeply unhappy and which seems to be wildly swinging from one party to the next in the hope that something – anything – will be better than what they have now.

There seems to be little recognition that the core problems, facing both our Federal and or State Governments, are similar if not the same problems. Those on the left complain that services are not being delivered to meet the expectations of the electorate. Those on the right complain that the budget is not balanced and we are living beyond our means.

Both sides of politics criticisms are in my view broadly accurate. Yet what has just befallen the Newman Government is a pretty good example of why both of these problems are becoming harder to fix over time. As much as we like to criticise our elected representative, and often our employers, over knee jerk reactions, we the public love a good knee jerk. Because of this neither side of politics can stay in power long enough to fix either services or the budget, much less both of them.

Compounding the public’s love of a good knee jerk is the needs of both sides of politics to make promises during election time that are problematic to deliver. Because of these problematic promises, the electorate forms unreasonable expectations about the government and about what is actually achievable. This exacerbates the public’s anger and encourages the need to knee jerk.

Many people have suggested fixed terms for governments can alleviate some of the questionable promises and indeed choices which both major parties regularly make in an effort to win or keep government. It is with this thought in mind that I’m going to suggest something that surely someone somewhere has thought of before. It’s too simple a solution not to have been suggested previously.  

I’d like to see what I am going to call rolling fixed terms for members of the House of Representatives. By this I mean that not only do all of our members of the House have a fixed term, but that the term of each member, whilst the same length, concludes at different times.

For example there are one hundred and fifty members of the house. Every month three of them are up for re-election. Every three months perpetually. That means that a different three MP’s in three different electorates across the country are up for re-election every month. That would give each MP fifty months in the job before they were up for re-election.

When those MP’s come up for re-election their electorates could ask them ‘what have you done for us in the last four years’ which is what should be happening. We might even get members of the house that actually represent what their specific electorates want, as opposed to being shoehorned into following party lines.

Perhaps most importantly whilst people will still over-react and perhaps make poor choices because of it we will not see the wild swings which are happening regularity at the moment. Only so much can change in government when only three seats change. Also government gets a clear signal, much clearer than any poll, when their policy is not popular.

If the majority of the house was close, say within three seats, then both major parties would have to develop meaningful policy, in case they suddenly found themselves with control of the Parliament. This would greatly reduce the more obviously ridiculous promises made by both parties. It would also allow the electorate to react quicker should a major party break a major promise.

What would happen if the majority in parliament changed just prior to the budget? The core numbers, which treasury is responsible for producing would not change. Both sides of politics would have little choice but to spread the deployment of new policy throughout the year with treasury updating the budget as and when required to do so. 

That would make treasuries job harder. However it would also stop government from turning July into an opportunity to pork barrel, through budget changes, to specific parts of the electorate and or lobby groups representing narrow interests. Instead July would perhaps become more of a time to reflect on the nation’s financial position, which is as it should be.

Some might say that with three ‘by-elections’ happening every month the blatant pork barrelling within specific electorates might increase. I’d suggest that it’s very difficult to pass legislation through both houses in less than a month. Also, would politicians be willing to pork barrel when to do so might lose your party three seats in the following month?

What happens if a minister loses their seat? The government should have a succession plan in place. Can you imagine any large publically listed private company not having a succession plan in place for its key personal? If the current government loses its majority then the opposition shadow ministers simply step into the role. If they are competent, surely that should not be so difficult to do.

More than anything else this system would force both sides of Parliament to be ready for government at all times. That alone makes it much, much harder to focus on the negatives without preparing an alternative. It makes it much harder to promise the unreasonable when you might have to deliver in a month. It forces your government to be honest or possibly lose government the following month if your promises are broken.

As is often my refrain this proposed system is not perfect. I’m sure over time it would need adjustment. At first it would be quite cumbersome, there would be problems transitioning. Who decides which electorates go to the polls first? There are many questions. Perhaps you the reader could ask some of those questions and through doing so we can all find an answer.

I have not mentioned the Senate in this post and that’s with good reason. I have a different view on what the Senate should be and on how they should be elected. I’ll cover that in another post at a different time. Rest assured it’s just as challenging as my thoughts on the House of Representatives is and just as imperfect.

Inherited Power is Inherently Wrong

Can you imagine living in a world where the right to govern is determined not by the will of the people but by who your parents are and what your gender is? Can you imagine what it would be like to be born into to poverty without a realistic chance of increasing your wealth?

Regardless of whether you can imagine it or not that’s exactly how the world operated for the vast majority of civilised history as we know it. Fortunately in the late 1700’s the French Revolution ushered in a fairly rapid transition from feudal societies governed by absolute rulers to the republics and democracies we are more familiar with today.

The causes of the French Revolution are complex and well beyond the scope of this, or any single blog post. Just one of the underlying causes was the resentment of the peasant class towards a ruling class which enjoyed absolute rule. The idea of inherited rule and all the privileges that accompanied it was incongruent with the ideas of the enlightenment which emphasised reason and analysis.

To surmise it’s difficult to qualify why someone should rule over others just because of who their father is. The people who govern us should be decided by the people who are being governed and that decision should be based largely on merit.

Presently it’s very uncommon for a nation state or country to be governed by absolute monarchy although there are a few examples such as the Vatican City and Brunei where this is the case. In terms of the politics it seems that most people are against the idea of inherited rule.

However the French Revolution was not just about the politics. It was also about the privilege enjoyed by the few whilst the majority struggled. Once again the ideas espoused by the thinkers of the enlightenment were in conflict with the existing social structure. Most of the privileged people were members of the aristocracy and once again this privilege was inherited rather than earned.  

I’d suggest that presently most people would agree that if a person has worked hard then it is only fair that they should be able to enjoy the privileges which result from their hard work. I’d also suggest that people are resentful of those who enjoy privilege without having worked for it. It is because of this that I am consistently surprised that one of my views, which I believe is pretty self-evident, is hugely unpopular with many other people in my personal experience.   

I do not believe that anyone has the right to inherit vast sums of money. My reasons for this are simple. They have not earned it. They do not deserve it. In the same way that it is deeply unfair for an aristocrat in the 1700’s to be given wealth and privilege simply because of who their parents are, I do not believe that someone should inherit wealth and privilege – wait for it – because of who their parents are.

Before I continue let me clarify that I am not saying that no-one should inherit anything. I’m comfortable with someone inheriting a couple of hundred thousand dollars, maybe even a million. Parents should be able to pass on some of their accumulated wealth to those they care for, but there is a huge difference between passing on some wealth and passing on a free ride. 

Those in favour of inherited wealth have all kinds of arguments. Normally I work hard to provide some balance with my pieces but I can’t work hard enough to provide balance on this issue. That’s because I’m yet to read one single argument for inherited wealth which isn’t in obvious conflict with the ideals of the enlightenment and therefore difficult to qualify.

Perhaps my personal favourite argument for inherited wealth is that society would be damaged if people could not satisfy the procreative urge by enriching their children. So apparently we won’t have children if we can’t guarantee that our kids will be better off than we are. Approximately thirty million births last year in India neatly skewer that idiotic argument.

Another offering is that world economics would suffer because of reduced investment. I am suggesting that someone’s inheritance is diverted – not disappear entirely. Instead of that money going to just one person or maybe a few, it instead goes to government. Now government will no doubt waste some of it, but so will private people inheriting wealth. Paris Hilton has wasted countless millions on her pets alone.

Let’s consider an example near and dear to Australians. James Packer. When Kerry Packer died in 2005 James inherited around seven billion dollars. He has proceeded to shift most of that wealth into casinos which are currently joyfully fleecing pensioners and other vulnerable members of our society of their limited wealth. It’s a great outcome.

Alternatively the government could have received that seven billion. How much could those seven billion dollars have achieved for Australia? Would it have been more beneficial than a sea of one armed bandits? I guess we’ll never know. 

What we do know is that there are a host of self-made very wealthy people who are strongly against inherited wealth. Bill Gates is perhaps the best known of these. Musician Sting is also strongly against inherited wealth. Lastly Warren Buffet has pledged to give away 99% of his wealth according to Forbes Magazine. He’s quoted as saying 'I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing.'

It’s the ‘doing nothing’ part of inherited wealth which I personally find so repugnant. I’m comfortable with someone who has worked to gain more wealth and the privileges that wealth can provide. I’m deeply uncomfortable with someone receiving wealth and the privileges that wealth can provide, without actually doing anything.

Amongst other things currency is supposed to provide society with a common measure of value.  That value can be gained either through the provision of goods and services or the sale of existing produce. In this way those who provide goods, services and produce can be rewarded for this by receiving currency which they can use to secure the goods, services and produce which they require. It’s a simple system that is clearly superior to the barter system which currency replaced.

But what happens when some people are gifted with currency without having to provide goods, services and produce? Is it equitable that some people receive for no effort what other people have had to work for? I’d suggest it’s deeply inequitable and because of that it introduces a flaw into an otherwise very equitable system.

Over time systems evolve. It doesn’t matter whether it’s a social structure, political or an economic system. I’m sure your average Babylonian, Greek or Roman thought their way of life was the best possible and that their system, even with its flaws, would just continue on.

History has repeatedly shown that new thoughts and ideas cause change in systems over time. In my view, people will not be able to inherit wealth in the future as something that is so obviously inequitable can only continue for as long as people will tolerate it.  Perhaps the only question remaining is can we manage the evolution of our existing system without another ‘French Revolution’.