The Wollongong and Shellharbour councils had been disbanded a few years ago due to gross incompetence and the first elections in some time to create newly elected councils are in the ‘promise-the-world-until-you-are-in-power’ phase. Occasionally I catch a bit of this dribble on the local ABC radio and the papers.
Coincidentally, BlueScope has recently announced the retrenchment of 1000 workers.
The result is predictable. Every candidate is promising job-creation for the Illawarra. There is plenty of rhetoric about how every candidate will lobby, cajole, convince, and empower the AAA, the BBB, the ZYX Federation, Council, Association, Alliance et al to create jobs in the Illawarra.
I never swear (badly) on this blog. But if there is anything that would make me break that rule then it is this topic.
The ONLY people who can actually create jobs are ENTREPRENEURS.
All of the aforementioned and most other organisations know how to spend money researching and talking about it, but they cannot ACTUALLY create jobs.
Just entrepreneurs can.
(On a side note: It is this kind of delusional thinking that led Governments to bail out failing companies by transferring their debt to the citizens. They are playing God in the economic sphere instead of just getting out of the way.)
Whilst the BlueScope retrenchments will create heartbreak on the individual level, and I do not want to diminish their pain, there are a few other perspectives to consider:
- I do wonder if the unions, who have insisted on 5% increases year on year on year on year take any responsibility for making BlueSope internationally uncompetitive?
- I wonder if the proponents of a minimum wage accept any responsibility for making Australia uncompetitive?
- I wonder if the ‘workers’ who seem to focus on their ‘entitlements’ have thought about their obligations?
- I wonder if politicians and workers have ever thought about the PAIN and the RESPONSIBILITY that the entrepreneur feels when they go about creating those jobs that everyone seems to demand – until they have them; only to then complain how it is not good enough.
In the business climate that exists in Australia, I certainly don’t want to be an employer. I find it hard to stomach the culture of entitlement from workers and the oppressive legislative regime.
The argument that we won’t allow slave labour in Australia is a furphy rolled out by anti-capitalist, anti-entrepreneurial sorts as a scare tactic. I am willing to put a lot of money on the fact that the market-rate for wages would be not very dissimilar to what it is now. The difference is that the current regime adds additional responsibilities of the employer that significantly increases the cost of employment. And in addition, the death kiss is the concomitant, increasing inflexibility that becomes part of your business with every additional employee.
I realise it may hard for people to imagine the alternative if you are raised in the current regime, but consider a few examples:
- What is the rationale for a government legislate that the EMPLOYER (in my case the individual ME) should pay a nominated superannuation fee and NOT put that obligation on the individual? Why must the employer be responsible for the prudent financial management of your retirement – and not the employee?
- Why must the employer pay the taxes and not the employee?
- Why can’t the employee be expected to insure themselves against accidents?
I think the point is made.
FIXING this problem is important.
There are two considerations:
Firstly, climate change proponents are probably prone to exaggeration (who really knows) – but if they are even half-right, we will be living in a shit-hole in a few decades.
The bottom-line of the climate change debate is this: GROWTH as we know it is over. The world cannot support growth at the rate that it has grown in the past. (Jeff Jarvis wrote an interesting post on the “jobless future”.)
Secondly, I believe we are migrating to a new economic structure. I don’t (and no one really does) know what it will look like.
I think that will be an environment where only the nimble and flexible will survive.
I think companies will be smaller – with many more solo businesses.
But what I know is that Australian business environment is not future-proof. And THAT will be the single biggest factor limiting Australia’ survival and our place in the world economic-pecking order.
The culture we have harks back to an industrial era where ‘industrial relations’ were probably necessary. But in the world we live in now, the same principles don’t apply. Workers in that era were different. The modern era means:
- Workers can communicate instantly with each other and establish what is fair and what is unfair.
- Workers are mobile and can move their skills anywhere at anytime.
- The balance of power (in the age of Intellectual Property) lies with the employee – not the employer.
- Employees can and do take responsibility for their own training because the skills required for economic success are not dictated (or resourced and controlled) by employers.
It just does not make sense to punish entrepreneurs with a restrictive employment regime when exploitation is not viable or available anyway.
If wannabe councillors/ politicians want to really help, they should get out of the way. I am not advocating anarchy or that businesses or entrepreneur are above the law.
What I AM asking governments/councils to do is change their attitudes. The prevailing approach (apparently entrenched in the culture of these organisations) is to look at every business, at every attempt to develop or grow something from the perspective of ‘what is wrong with this proposal.’
If they could change their approach to ‘how can we help make it happen’ then the entrepreneurs have all the help they need. Real entrepreneurs can make anything happen (e.g. raising capital when rates are not favourable) but they can’t break the law and these politicians ARE the law.
Such an attitude shift would be a big challenge in itself, but that is all we require.
Thank you. Sorry for the rant. Let’s save Australia.