Whats wrong with this statement by Julia Gillard?
….Well, the effect is that in the shops when you come to buy things, products that are made with relatively less carbon pollution will be cheaper than products that are made with more carbon pollution. So you’re standing there with your household assistance in your hand. You could still keep buying the high-carbon pollution products if you want to, or what you’re far more likely to do is to buy the cheaper, lower-carbon pollution products. That means that the people who make those things will get the consumer signal: gee, we will sell more, we will make more money if we make lower-pollution products. That drives the innovation. So I want you to have that household assistance in your hand but I also want you to see price effects which make cleaner, greener things cheaper than high-pollution commodities. That’s why it works.”Honey, this is why it doesn’t work It only considers Australia in isolation and ignores the world economy. In Julia’s shop you could be confronted with goods made by a high-polluter and goods made by a low polluter and just when you remember Julia’s words and reach for the cheaper low-pollution made product you notice the same product along side made in China for half the price again! Oops! Julia forgot to tell the Chinese to apply a carbon tax to goods they export to Australia. Secondly; What source of power does the politically correct Low-Polluter manufacturer use? Solar Power? I hope not because if he does he will have supply line problem only being able to manufacture on hot sunny days. This leaves the shopper faced with the high-polution product, now dearer because of Julia’s Carbon tax, the empty bin of the low-polluter or the one made in China – still cheaper. Oh, and exactly what household assistance would I have left in my hand. With domestic power rates soaring from this and other Green ventures, water dearer because ALP governments traded dams for Greenie votes and built billion dollar desalination plants instead, and a host of other price increases that this tax will produce I will be so out of pocket I will need to be reincarnated as a 30 year old to start earning more money again. Failing that, has anybody got a job for an old digger? My fixed income superannuation won’t cut it.