Its so frustrating watching this Labour crowd when it comes to simple matters like getting things done. Running projects.
I just saw an article which would have it that we only have 7000 out of the 25000 technicians needed to get the NBN done in 8 years. It follows directly that if they don’t slow the pace of the roll-out down drastically …… before SLOWLY building it back up …….. they will do untold damage to the economy (starving the rest of the economy of the services of these guys) …… and blow out their own costs.
What is it about the current Labour leadership that they cannot understand basic things like this, and learn from their mistakes?
They simply CANNOT do this at the pace originally planned. And any attempt to maintain that pace will cause untold damage and achieve very little.
You have to build momentum over time. They have to slow down to a pace SLOWER THAN WHAT IT WOULD TAKE TO MAINTAIN THE FINISHED PROJECT ……. before slowly picking up the momentum again. Or there will be terrible problems with it, just as surely as night follows day.
Of course the best idea is to spend a lot less on the project, but make revenues to sole trader subcontractors …… tax-exempt. Make it clear to these guys that this will be the case indefinitely. And that if they are cost-effective enough there will be ongoing work for them maintaining the network.
That way the sole traders will train thousands of new technicians, and accumulate the capital goods necessary, to be able to handle the whole project much more cheaply.
If you wanted it STILL CHEAPER, well Rococo Liberal had an outstanding idea which I won’t repeat here.
Its not necessary. Because the burning of the Koran is needed to provoke the anger, which leads to anger fatigue, which leads to the lack of fear, which sets the Muslims free.
Whereas the General Theory is merely ignorant and ridiculous. Its not something that people are getting violent about. People get killed because of the book sure. But mostly indirectly. Whereas there is a climate of fear associated with the Koran. You have to bring on the anger, wear it down, and wear it out, before getting rid of the fear involved with the Koran.
If you burnt the General Theory, no-one would get angry. You’d just diminish your budget, buying the stupid book, so as to burn it.
No it wouldn’t help aggregate demand you fucking thickhead. It could in no way help aggregate demand. There is no capacity for buying crap books to help aggregate demand, since this does not reduce cash balances nor does it increase the money supply.
Shit you are a slow-learning commie. I thought I had explained it to you before. More money spent on these books simply means less money to spend on other stuff or to put into the loan market for others to spend.
There is something very little about the mind of anyone who ever falls for Keynesian idiocy.
Of course the NBN is going to cost a bucket. So what. The fainthearted, weak kneed may baulk at this, but they are yesterday’s men and losers.
Sure nation building costs heaps and makes huge demands on the brave and the energetic. That’s a given. The problem for the Liberal/Libertarian Right is that most people in Australia today intuitively associate genuine liberalism and libertarianism with the Left and its goals.
Its not just about it costing a bucket. Its that they’ve chosen a pace, and strategy of roll-out, that will blow out costs sky-high. You need capital accumulation to improve the cost-effectiveness of doing anything, and this capital accumulation takes time.
Supposing you were doing it my way. Putting your faith in tax-exempt sole traders. Well in order to get the job done in the context of falling costs, they need to reinvest their earnings in equipment that will save recurring costs. They would need to treat every installation as a training opportunity. They would need to build up a team, slowly accumulating more employees, and the skills of each employee.
Now they have to slow down to avoid a blow-out. But from there they can accelerate the pace of it. But the key is that if the spending is ON THE ROLLOUT then the costs will blow out. Whereas if much of the spending is IMPROVING THE BUSINESS then the costs can keep falling.
But how can a great deal of the spending be on business renovation if the government is just wanting product product product, out there as fast as they can do it.
Capital accumulation continually occurs. It’s just that you and I and most others have no access to it or ability to curtail or impost it for the benefit of the majority as opposed to the currentl disproportionately privileged minority.
I’d be happy for the mining companies and banks to be levied and taxed to the hilt to pay for the NBN. And perhaps they will be so on day.
But whatever constraints exist on our ability to build this essential infrastructural service, upon which so much else depends are frankly trivial. I don’t give a toss about them. Let’s just do it.
Only weaklings and Liberal/Libertarian wusses think it is too scary to move anywhere radical for fear of their shadows.
Supposing the government started buying the product where I am. And they just wanted more and more product. They just wanted us to get it out as fast as possible. Well we could spend all this money on overtime. And on various ingredients and components that go straight into the finished product.
But supposing you want to reduce costs over time? Well you want to have good margins to provide money for reinvestment. But you also want to be of the understanding your prices would fall over time.
Then we would need to reinvest to become more productive. Rather then just keep spending to get the product out there around the clock.
So now if I was running things, I’d buy a check-weigher that could weigh product on the move, then I’d double the output of one of the conveyors. From there we would have to deal with the palletizer getting clogged up. Then the guys downstairs would be getting ahead of the production which originates upstairs ….
.. And we’d need to change things, and with more investment to pick up the pace upstairs. The point is that all these things take time. And a process is only as fast as the slowest part of it. Speeding up one part of the process, leads to bottlenecks down river, and only an imperceptible increase in the overall production. You have to be able to increase production at every stage of the process. This takes time.
But you can never get more cost-effective if you are only spending for current production. You need to be redirecting spending to future cost-effectiveness. Not blow everything on current production.
But the way these guys are rolling it out they will be blowing it all on current roll-out. Not reinvesting in making the roll-out process progressively cheaper.
See they want to do it in eight years. But people are saying that would require 25000 technicians of a type wherein we have only 7000 in the entire country.
Now these 7000 are not unemployed now right? So supposing they bid 1000 of those 7000 technicians off the private sector. Now the private sector has only 6000 of those guys, and all 7000 of these people will have gotten a pay rise.
Now they only have 1000 of the 25000 people they needed.
Its pretty obvious that to start running at top speed like this isn’t going to work. It didn’t work in the insulation business. It didn’t work in the school buildings project. Its not going to work now.
Now if they start slow they can accelerate and gain momentum. No problem there. But they simply cannot do what it is they are trying to do, or there will be another disaster.
No point in trying to talk to naysayers. The human race wouldn’t have progressed at all if that was the case.
It’s the can-do and problem solvers, ie. the left side of politics and those they can bring on board, like the wise-owl Windsor and the very handsome and competent Oakeshott, that are the name of the game.
But its not just naysaying Philomena. This is fundamental business reality. The problems can get solved yes. But not if they go off and simply repeat the gaudy failures of the past with the exact same methodology.
If they did it my way, for example, you would pretty soon have a thousand sole traders, and more coming on board every day, each of them with a team of varying sizes, and each of them working on this problem-solving you are talking about.
Its not like there is any DOUBT about this. If they don’t slow down they will screw it up bigtime. You need time to build momentum in the context of improving value-for-money at each stage.
The ceiling fiasco wasn’t just rorts. The buildings fiasco wasn’t just mismanagement. There is never something for nothing. If you do things in an anti-economic way you will get a lot of extra costs for very little in the way of extra network.
There will be a lot more people thinking in the way that Max Keiser is thinking. Being against any sort of revolution as long as I can remember, the current time period puts me in a difficult position. The Americans elites are running amok, outside the law, and just stealing. I cannot get over the bankers stealing all that money then paying themselves all those bonuses. If the top management of the derivatives providers and other banking rackets, are all hauled out onto the streets, and shot in the head, they will have only themselves to blame.
But there behaving in this way makes you think they must be confident in their own access to a lot of firepower and other forms of compulsion.
Your thinking in this matter is somewhat like your thinking with regards to the pyramids. The official story of the quakademics, about when and how the pyramids were built are basically proven wrong already. It could not have happened like they say. Impossible. Defies all economic reality.
But then if you don’t understand that you will imagine you can squeeze 2 billion dollars down the roof insulation market and not create a disaster. You can throw all this money at school building construction, and not get only 30c in the dollar of value. And you will imagine that you can start a gargantuan continent-wide scheme, at full pace, rather than build up the momentum over time.
But none of these things are possible. The results we got were entirely predictable. And economic laws are better known, and almost as rock solid, as physical laws.