This one brought to the front from ten months ago at the very sad news of Richard Pratts death. He was hounded during his illness by white maggot scum who certainly could have used their stolen-money-resources more wisely. At a time when Australian manufacturing was being hollowed out by appalling monetary and fiscal policy, necessitated by unprecedented levels of parasitism, one man found a way to keep a large part of his industrial power here at home.
At a time when many made millions of dollars, from barely productive speculative capital gains, or alternatively from the provision of transient consumer frippery, ONE MAN built an enourmous fortune on the basis of increasing the productive power of his workforce. This is how many if not most tycoons would build wealth under sound 100% backed commodity money. But being productive might be seen as almost a mugs game under the status quo. Somehow Richard Pratt managed to build real wealth, authentic productive wealth, in the context of compulsion cash ponzi pyramiding, and during the advent of exponentially expanding societal leeching.
Over here at the worlds cheapest think-tank, most expensive blog, we are not always pleased with everything, our former friend Jason Soon says or does in public. Over here at “A Better World” we are not always overjoyed by the attitudes and pronouncements of each and every Catallaxian. But certainly we were very pleased by Jason slipping behind enemy territory, into that citadel of leftism;your (YOUR!!!) A-bloody-BC, just to put up a spirited defense of Richard Pratt, in what at the time had turned into an outrageous hysteria.
Anyway here is what I said in response to Jasons piece. And it looks a bit thin yes. But it really ought to be seen as complementary to what Jason himself said at the time.
From ABC Unleashed:
The global village as produced by the internet is beginning to look like some primitive medieval town given to bursts of hysteria.
These blokes are being hounded for co-ordinating prices. Not for failing to deliver value-for-money. Try and put yourself in their position. Co-ordinating prices is no end to competition. The competition must then go internal so long as there are no governmental barriers to entry.
Now there WILL (no doubt) be various subtle governmental barriers to entry. But it is these that ought to be addressed. This is a better way to go about things than mindlessly lashing out at old men.
If I co-ordinate prices with my competitor this is no end to the war. Its an armistice only. I’ve got to work harder than ever to reinvest and apply technology to bring my internal costs down. Because what I’ve done is basically guarantee my competitor a living wage. He will see matters the same way. So the important thing, the reinvestment, this will continue. If anything in heightened fashion.
With the proviso that there are no government created barriers to third party entry.
Now the law is the law. Its an unfortunate law and it is such a shame that we deal with these sorts of allegations with such spitefullness.
The law is the law and Pratt has been caught and the law must sadly be applied. But at least can we do this without Malice?
This is not a new technology this paper-making. It is quite a long-standing sort of activity. And Pratts customers have been other businesses whose buying departments must surely have had their rational-hat on when they made the decision to purchase from Pratt. Ergo it is almost inconceivable that Pratt has managed to grab such a very great degree of the home market without delivering increasing value-for-money decade-in decade-out.
We ought to show a little gratitude to our law-breaking benefactor.
Now I could be wrong. Pratt could have made it where he is today by lobbying behind the scenes for trade barriers and environmental obstructions to new producers entering the market. In which case no gratitude is necessary or appropriate.
I imagine his billions are as a result of his shareholding in a business that he is constantly improving and reinvesting in. But then that could be wrong too. After securing his governmental barriers to entry behind the scenes, he could be skimming off the top.
I could be wrong.But I…..don’t…..THINKso.
Its good that a man like this can build up such wealth in a single generation. Not so good when it guarantees that his great great great great grandchildren may wind up part of a ruling class that doesn’t need to be fabulously productive to have tied up all the opportunities.
It is the latter sort of problem that we ought to be more miffed about.