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Friday, April 15, 2011

Costs will be passed on

When government’s talk about slugging polluters with extra costs and compensating households it is important that we all understand what that actually means for us.

Consider what it means for Australian businesses, from the mines, electricity producers, the aluminium industry right through to small local manufacturers with a handful of employees.  

Pricing carbon at 20 or 30 or more dollars a ton more than other countries... has a direct effect on more than that business.

Of course increased costs to one business,  like electricity producers, has to be passed onto their customers.  Some households will be given compensation but what about businesses?

Additional costs will be passed on from one business to another and eventually through to customers, you won’t be compensated for those increases.

For some businesses, those additional costs will mean it becomes unprofitable to manufacture in Australia and those jobs and investment go overseas.

Less jobs in Australia mean a less productive economy, and less export earnings as well as more imports… and that is exactly what this government want for our future...moving forward … Turn It UP.



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Links



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UNDERSTANDING BAR-STOOL ECONOMICS AND THE CARBON TAX
http://turnitupmike.blogspot.com/2011/03/bar-stool-carbon-tax-economic-modelling.html


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I want to thank the team from Bow Bow Plumbing.
Commercial plumbing maintenance, based in (not limited to) the Sydney area.

I've known them for a long time and always been impressed by them. 

Bow Bow Plumbing brings a work ethic to the job that we need
more of in the business world.

If you have need for a commercial plumber, check him out.



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Where to Listen:
Turn It UP Mike Segment can be heard 
on Radio 2SM and stations on the Super Network
Monday to Friday with Grant Goldman.
http://www.2sm.com.au
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