Throw subs and super out with Holden
Article by Brian Toohey quoting Daryl Dixon
Now that government assistance for the car industry is ending, the next step is to dismantle the much costlier protection to other industries that was granted by "reformers" who should have known better. The nation should ultimately gain from Holden's decision to stop local production. But much bigger gains are available from scrapping the protection Paul Keating and Peter Costello granted to naval shipbuilding and the financial industry. However, there is now a severe danger the Abbott government will squander the benefits of scrapping car subsidies on more protection for shipbuilding and the financial sector.
Economic outcomes and individual liberty would be improved if people allocated more of their income as they wished, rather than being forced to contribute 9.25 per cent to super. Compulsion is particularly bad for low income earners who would prefer to spend more of their income on bringing up a family, paying off a home and so on rather than enduring the opportunity cost of deferring access to this income until after retiring. Daryl Dixon, the executive chairman of a firm advising self-managed super funds, recently said, "The reality is that many on lower incomes would be better off receiving more aftertax income and improving their already low living standards. The government [should] stare down a super industry more interested in its own prosperity than acting in the best interests of its clients."
Read the full article: Throw subs and super out with Holden (The Australian subscription required)