How should we judge a government?

In Malaysia, if you don't watch television or read newspapers, you are uninformed; but if you do, you are misinformed!

"If you're not careful, the newspapers will have you hating the people who are being oppressed, and loving the people who are doing the oppressing." - Malcolm X

Never argue with stupid people, they will drag you down to their level and then beat you with experience - Mark Twain

Never argue with an idiot, otherwise people won't know which one of you is the idiot.
Since light travels faster than sound, some people appear bright - until you hear them speak.

Why we should be against censorship in a court of law: Publicity is the very soul of justice … it keeps the judge himself, while trying, under trial. - Jeremy Bentham

"Our government is like a baby's alimentary canal, with a happy appetite at one end and no
responsibility at the other. " - Ronald Reagan

Government fed by the people

Government fed by the people

Career options

Career options
I suggest government... because nobody has ever been caught.

Corruption so prevalent it affects English language?

Corruption so prevalent it affects English language?

When there's too much dirt...

When there's too much dirt...
We need better tools... to cover up mega corruptions.

Prevent bullying now!

Prevent bullying now!
If you're not going to speak up, how is the world supposed to know you exist? “Orang boleh pandai setinggi langit, tapi selama ia tidak menulis, ia akan hilang di dalam masyarakat dan dari sejarah.” - Ananta Prameodya Toer (Your intellect may soar to the sky but if you do not write, you will be lost from society and to history.)

Thursday, July 11, 2013

Why government should mind its own business when considering how to reduce car prices

It is generally agreed that 'laissez faire' or the doctrine that government should not interfere in commercial affairs should be followed wherever possible.

But in trying to compete with Pakatan's proposal on how they would reduce car prices, Mustapha Mohamed seems to side-step what are within his control (excise duty and sales tax), and expect more from manufacturers' productivity and profit margins.

'In trying to reduce car prices, its better for the government to manage the variables it has complete control such as excise and sales tax. It’s the government who imposes these and not the private sector. Its better for the government to mind its own business.'

'...The 4 elements that go into the pricing of a car are the cost ex-factory, profit margin, excise duty and sales tax. Mustapha went on lecturing on how improving the productivity the manufacturer reduces unit cost and hence can offer a reduction in car pricing.'

'It’s a common flaw that runs through the entire gamut of BN government economic thinking. The same principle or thinking as it were underlined much of the overrated government’s ETP. The thinking is this: this government thinks it can generate economic progress by way of centralised planning. To do it must exercise complete direction over the affairs of economic agents.

Herein lies the fundamental flaw. Having wedded itself to the idea of centralised planning, it seeks to control variables outside its own area of competence.

Consider the attempt to reduce the car price. The 4 elements that Mustapha mentioned were (1) ex-factory price (2) profit margin (3) excise tax and (4) sales tax. All these cost elements are variables if and only if one party gets to control all. The government can’t control ex-factory price and profit margins, short of giving decrees. '

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