Posted: 1:55 pm on 28th May 2013

Australia’s politicians have managed to prove the truth behind Adam Smith’s classic maxim about people of the same trade coming together in conversation but ending in a conspiracy against the public to raise prices.

News has recently emerged about a proposed deal, negotiated in secret, between the ALP and Coalition to introduce laws that will give even more public money to political parties.

The proposal is that for every vote a party or independent candidate receives they will also receive $1 to be used for party administration costs. This has come in response to a proposal to make political parties disclose all donations larger than $1,000; previously donations greater than $12,400 had to be disclosed.

It is alleged that the $1 per vote will be used by parties to comply with the tougher disclosure laws and the subsequent need to declare a far greater number of donations.  In addition to the $1 per vote, it is believed a further $300,000 will be allocated to helping parties and candidates comply with the tougher donation laws.

The scheme is estimated to cost $58.1 million over the forward estimates. On top of this, the public already kicks in millions of dollars into party coffers through public financing of election campaigns.

Given that it is estimated that Australia will have cumulative budget deficits to the tune of $50 billion over the next three years, giving $58.1 million to political parties to help them with their clerical and accounting work is ridiculous.

The prophetic nature of Adam Smith’s classic The Wealth of Nations has been proven once again today, 237 years after it was published.

 

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