Hardly the most impartial article at hand.
The Age is well known to be a left-leaning newspaper (like the ABC and most of the Australian press), and Stiglitz is of the left as well, not to mention one of the most fervent Keynesians - the advocates of government stimulus.
Sure, some of the stimulus (e.g BER) money may have actually been put to good use. But that is a red herring - it is not the issue here.
It doesn't forgive the overwhelming evidence that in many cases ridiculous amounts of money have been wasted. Or that it conviniently helped to prop up Labor allies like the construction and building industries and unions.
You are right in that Turnbull would probably have ramped up the stimulus as well. But I seriously doubt a multimillionaire merchant banker with vast business experience would have been so inefficient in his implementation.
To be honest, I'm sure many citizens, including myself, share the Left's concern for a more equitable society and the lofty visions which they aspire to.
But for many of us, the problem with the Left is that all too often they tend to be ivory tower intellectuals who are blinded by idealogy.
Here's a great example. Remember when KRudd first tried to introduce the first mining tax? The big three miners were against it because they claimed that they wouldn't be able to finance their mining projects. The banks would not lend against a mere guarantee from the government that it would pay up its 40% stake; they wanted to see the government's money in their coffers before they would cough up the rest of the dough.
What was so amusing about the entire episode was that the Government proceeded to claim that this wasn't the case; that the miners were just trying to stymie the tax, when the bankers themselves were against them.
Imagine that. Government bureaucrats with absolutely no business experience telling senior executives and bankers how their businesses are run.
Another example. Stiglitz himself has admitted that resource prices are cyclical (go up and down). Well, during the lean years we didn't see the Government stepping in and helping the companies to survive. That can be attributed to the combined efforts of management and shareholders who did the hard yards, pumped in additional capital of their own, whatever it took.
So now when prices have recovered, the good times are finally rolling and the company is finally making some money,
do you think it is fair that the Government can come around, cap in hand and say "there is no reason that mining companies should reap this reward for themselves?"
Three words - fair weather friends.
The article is full of red herrings and false assertions. I'll just supply a taste of them for now, but if you are interested in more let me know. Think about it - what the hell does an American know about the local situation in Australia?
There is no contradiction here. The resources sector is the engine of the Australian economy. Imposing mining taxes will inevitably damage the economy.
Stiglitz conviniently ignores that there are other ways to reduce deficits - like
reducing wasteful spending.
This is rubbish and hyperbole. They may "try" to get it for free, but they won't. Mining companies already pay royalties to the state for access to mineral deposits.
A red herring to confuse the unwary. The cause of the soaring prices is totally irrelevant. Mining companies pay the states royalties for the right to exploit minerals. Therefore, they are entitled to any profits derived from these minerals.
The exact conditions under how these profits are derived is irrelevant. For example, they may choose to stockpile steel until the price of steel rises, and then sell it for a larger profit then.
Think of it as outsourcing a tax farming operation.
Mining companies already do not "reap this reward" for themselves. They already pay company tax of 30% and state royalties for the right to access mineral deposits for a total tax rate of 40-50%, depending on state.
For a player who has no money in the game and no skin to lose if it all falls over, don't you think 50% for doing absolutely nothing is a bit rich?
And they are now asking for more?