I Don’t Care…

It’s a popular song but the reality is that almost to a tee we all do care, and yet it’s a sad indictment on conversations about successful enterprises that we dismiss people as greedy or uncaring when they become wealthy. Now I’ve never met Geoffrey Edelsten, for all I know the stereotypical uncaring rich snobs tag may well apply to him but who knows, it’s irrelevant as there are always exceptions to any rule.  The truth is that almost all of us do care about those who are unfortunate enough not to be able to look after themselves.  Conversations about “rule of the jungle” are antiquated nonsense that are just a misnomer in the real world.

Open hand, give me five

When I’m presenting I always have to explain that understanding the differences between economic theory, and there are two main schools, it is essential to realise that the one school which makes sense ie market driven, is not about every man for himself.  The starting point of neo-classical economics is the social compact.  The need to create a society that is capable of providing for us all including the disadvantaged and infirm, the young and the elderly who are down on their luck or unfortunate to be born or develop disabilities that exclude them from being able to take advantage of the equal opportunities that the rest of us enjoy.

It really annoys me when conversations about society being about more than money suggest that we can live in a world without money because “corporate” greed is the cause of our problems.  If the starting point is that we want to deliver the social compact then we need to be having conversations about how to set the conditions that allow enterprise to flourish and for society to understand the importance of enterprises being prosperous.

Too many people from the many conversations I have had do not understand our income taxation system, do not understand tax concessions or how company tax flows through as revenue but not as income for government.  They do not understand the basics of how money is used in an economy and the consequences of regulation posing a handbrake on the robustness and strength in an economy.  This is why I often refer to the emotive discourse of envy and take people up and confront their opinions.

I’ve said many times that I don’t know everything, but after achieving financial independence at a relatively young age, I do like to believe I know a few things especially about the topics I speak on ie the benefits of prosperous enterprises and how to be profitable in business.  No matter what you want to achieve in life, it is all about money; without it you cannot help anyone; yourself, family or any other.  Every measure of social wellbeing for over 200 years of collated data clearly shows that humankind only improves as it becomes more prosperous.  It’s time we started having conversations about how to change the cause of problems in society and it begins with understanding how to become prosperous.

I’m not saying mind you that everyone has to focus on becoming wealthy or even financially independent for that matter, but it is important that we only understand why it is so important to us all that there are people who strive to do that and how it benefits each and every one of us.

 

Trevor Dixon

Chairman Small Business Foundation

For more on “Enterprise” – The Art of Freedom, visit:

www.smallbusinessfoundation.org

I’m Not Always Right

Two things in life I know for absolute certainty; not everyone will agree with everything I say and I often change my opinion on things.  These are both very important things to understand about yourself and the key to finding solutions to simple problems with complex issues.  The stated objective of the Small Business Foundation is to eradicate global poverty; a perfect example of this conundrum.

Red one hundred percent

I attract people with enquiring minds to the foundation, those amongst society who have fixed dogma are fairly quickly found wanting as their opinions are based on emotive confrontative styles of leadership.  It’s fairly easy for an informed mind to see the lack of substance in emotive arguments and point out the flaws, a big person will reconsider their position and change their mind.  To often than not though, self-interest agendas or personal ego will see them move on.  That’s great because no amount of insight will open a closed mind and we need thinkers to solve the big problems of the world.

The first half of the truisms about myself I pointed out was that it’s impossible no matter how informed you are and how persuasive you are that 100% of the people will agree with 100% of your ideas.  This is a more important principle to understand than having an open mind to change your opinion when you find out more information or perspective; the reason for saying this is that the solution to our problems lies in the fact that we are all individuals.  An approach of centralised control by governments to implement services or solutions does nor work because at our core, everyone is different.  Economics are simple but economies are complex and when one hat fits all is implemented the different people involved at the delivery end of the equation become dissatisfied.

We are all the same in that no-one will agree with us all the time, even our strongest supporters will not so why do we persist with accepting the same old problems from our politicians and not demand a different approach.  Yesterday I was talking about how privatisation of health services would produce a better outcome, again not everyone will agree with that approach but the key is that we need to become informed and have intelligent not emotive conversations.  Because we are all different, a one hat fits all solution implemented by State governments does not work; another alternative is to get local government to run hospitals.  Local politicians know far better the individuality of the people they represent and are far better informed about local problems than their State or Federal counterparts.  And another solution is to get local community leaders run their hospitals, again because they understand local issues.

The key point here is that decision making is made by individuals, not by a centralised thought policeman who tells us how to feel, think, act; we know that’s true and thats what’s important in business.  We have to determine how to explain the value of what we are selling to consumers in a way that they understand and with a desire to pay the price we ask.  Solving our problems is exactly the same, it’s an individual transaction to appreciate and understand the value being provided so why do we persist with having a bureaucracy detached from the transaction as the panacea of how we deliver government services…

Collective will  cannot solve our problems, collective intelligence, hard work and a desire to benefit others as well as yourself is the way to go in my humble opinion.  Are you of a similar mind, do you want to be part of the solution, do you think that starting conversations in the wider community based on sensible understanding of whats really going on is the way to creating a healthier, wealthier and happier society?

If you do, then you are an individual that needs to contribute, find out more about the Small Business Foundation and ask me how to get involved…

 

Trevor Dixon

Chairman Small Business Foundation

For more on “Enterprise” – The Art of Freedom, visit:

www.smallbusinessfoundation.org

 

Is Government a Business

Small businesses have an imperative unlike any other sector of society, it’s called cashflow and it is this very vulnerability that makes us in my view, the most important part of the economy. We hear often about the losses that QANTAS have been making in past years and the projected return to profitable trading. Debt and deficit at all levels of Government is in the news almost every day, the distinction between debt ie level of borrowed money and deficit which is a shortfall in the cashflow of government is important.

Doctor - No Face

Too many in society don’t understand how to manage cashflow and the term budget is anathema to most. Perhaps the biggest barrier is it’s something we have very little knowledge around the basics and as a consequence it’s viewed as something too difficult. Members of the foundation have free access to the “essentials pack” and one of the modules – Financials, Budgets and Cashlow”.

The reason small business is so important to our economy is that they must react immediately to external influences otherwise they go broke. Government and big business can ride out cashflow crisis, sometimes for years. Small business won’t last a month if they don’t adapt, change, innovate; they don’t have any other option other than to be profitable or disappear. That’s very healthy, in fact critical to ensure that our economy doesn’t stagnate. I’m not anti-big business just for the record, but it’s important to understand why I focus on small business as my main interest.

So the question is should government be in business, well the reality is they are! The delivery health and education for example are services, and private enterprise or government can deliver them. I often get into discussions about the concept of universal or “free” services and why that’s better a system than paying a private company that have to make a profit.

To start with government does not deliver these services for free, they collect taxes and pay the costs on behalf of us. Like cashflow, delivery of universal health is also not well understood and looking at better ways to deliver services is a sensitive topic. I was chatting with an elderly couple recently and they were comparing the contrasting very different experiences they each had had in the public health system.

At one hospital the service was extraordinary, at the other it was very different. Arriving by ambulance transport service, he was taken in a wheel chair up to his appointment by a hospital wardsmen. Taking his patient to the head of the line, he was told by the receptionist that he would have to go to the back of the line and wait. Now the wardsmen already had a call to pick up another patient, which he told the receptionist who promptly ignored him. Leaving the patients documents on the counter he responded by saying to call him when the patient was ready to be taken back to his transport.

A long story short, the patient waited patiently and after three or four attempts to find out where his appointment was at, decided to leave after 4 hours without seeing his doctor as it was apparent his paperworkj was not going to be processed only to find that his transportation paperwork had been shredded by the receptionist. The biggest difference in this story contrast in standard between two hospitals in the same town and significantly that in a universal free system, the patient cannot chose to go to the other hospital.

This highlights for me the difference between small business and particularly government. While there are many dedicated professionals in the health services, there is no imperative to deliver great service. The wages next week will still be paid, the government may change but the headlines stay the same.

If we had a system where all health was delivered by private enterprise, but had a system that saw reduced taxes so that the majority become responsible for taking out their own insurances and choose where they go. Bad service means that a bad hospital will become unprofitable as customers vote with their feet. The improvement from the imperative to perform in both courtesy and quality of medical treatment will see great hospitals become the norm.

And those who cannot afford to be part of this system, well they ARE a part of it as the cost is still met by government, just that the patient has the choice where to go and use the credits provided to the vulnerable. No different to health being universal but the outcomes are demanded by the patients at the point of delivery, not by complaint at the ballot box which changes little.

The really sad part for me in writing today’s post is that conversations like this are not yet a normal part of our society, there may be better solutions than mine but we need to explore them. We seem to be more focused on taking less responsibility for ourselves and for my mind this delivers a lower standard outcome.

 

Trevor Dixon

Chairman Small Business Foundation

For more on “Enterprise” – The Art of Freedom, visit:

www.smallbusinessfoundation.org

 

 

 

 

 

 

 

 

 

 

 

 

 

Poisoned Chalice or Sweet Fruit

David Gillespies bestselling book Sweet Poison on the danger of a high sugar diet in todays modern world demonstrates one of the negative outcomes from economic advantage and is a salient warning that with increased wealth there are also risks that we need to be conscious of.  It’s not all bad news though, today we have the ability to control one of the worst consequences of a high sugar diet, that of diabetes.  On the 27th July 1921, Canadian biochemist Frederick Banting and associates announced the discovery of the hormone insulin.  Today modern medicine allows us to manage the lifestyle of diabetics and avoid the necessity of low calorie, low carbohydrate diets which was the only treatment available before this discovery.

Fat man watching TV

As mankind particularly Western economies have developed, we have increased our consumption of both high quality protein in the form of cattle and other commercially produced livestock or mass harvests of seafood.  We have also greatly increased our intake of processed sugars and corn syrups to satisfy the craving or pleasure sensation felt when our brain receives a ‘sugar’ hit.  The quality protein improves our attentive capabilities  and muscular development but sugar has only been detrimental to our health.  Along with diabetes comes heart disease, obesity, joint stress and fatigue from too much load bearing  to name a few of the problems from developed diets.

China is now starting to also experience these problems as it develops, there are now more obese people in China than in the West, and while we may be capable of developing drugs such as insulin and statins to manage the consequences of this problem, we really need to look at the much bigger picture of prevention rather than cure.  Obesity is not a potential problem, it is an epidemic now.

I’m no different, it’s much easier to enjoy the fruits of our labour and wait for the problems later in life.  The challenge is not how do we inform society, it is more about how do we activate a desire to do something about this epidemic.  One solution would be to get back to an agrarian lifestyle, have a much simpler economic model upon which society is based where sedentary workplaces are replaced with a production model where we all contribute.

In a socialist utopia we would all be healthier; or would we!

No, the reality if we transformed our economies that way is that we would slow down the advancement in modern medical breakthroughs.  As enterprise slows, the availability of cash would be a limiting factor in the ability of society to invest in our health and wellbeing, we would actually be regressing to the lifestyle and health outcomes of ages past if we switched our economies to that model.  Our future wellbeing is dependent on continued economic prosperity and the incentive being on the individual to take responsibility for preventing obesity.

Changing the idleness of individuals is not a responsibility of government, government does however currently have a responsibly to manage the health outcomes of the people and they are struggling to fund it.  I don’t have an answer to put on the table today, but the question is how does government create the conditions for enterprise to flourish and at the same time establish the framework where society finds it desirous to train harder or eat less to avoid being a burden on the medical system…

 

Trevor Dixon

Chairman Small Business Foundation

For more on “Enterprise” – The Art of Freedom, visit:

www.smallbusinessfoundation.org

 

 

Cheque’s in the Mail

We’ve all extended the courtesy of trading terms to a customer only to have to chase up a payment after it has gone beyond the due date.  It’s an old cliché that they have posted the cheque and is used to avoid the embarrassing conversation that they haven’t or can’t pay us.  While still a preferred payment method  in some economies, thankfully in Australia electronic banking has become prevalent and conventional allowing us to confirm that day if a deposit has been made and tighten up our cashflow.

portalettere

We assume the burden of risk when we start our own business but that doesn’t mean that we should simply accept risk as a consequence of our enterprise.  Managing cashflow is one of the most essential tasks in  every business and if we accept poor payment habits from our customers we are unnecessarily increasing the risk and exposure to ourselves.  Failure of what may otherwise be a very good operation often happens not from a lack of profitability, but a lack of of liquidity.  Even in retail operations where it is normally payment at point-of-sale I have seen volume hunting drive poor decision making and credit extended to customers that you just know will come back to haunt you.

On the 26th July in 1775, a postal system was established by the 2nd Continental Congress of the United States with the first Postmaster General being Benjamin Franklin; access to communication in this case a postal service is a crucial aspect of commerce.  106 years later in 1881, again on the 26th July, Thomas Edison and Patrick Kenny executes a patent application for a facsimile telegraph (U.S. Pat. 479,184) and again just over 100 years later on 26th Jul in 1998  AT&T and British Telecommunications PLC announced they were forming a joint venture to combine international operations and develop a new Internet system. The joint venture, known as Concert, proved a money-loser and was shut down.

It is interesting that these events all occurred on the same date in history.  They all demonstrate the development in advanced economies  that prosperity provides access to better infrastructure such as the postal service or transportation systems.  While it may be public money that is invested, it is the taxation base we draw from prosperous private enterprise which creates the means to raise this money.  It also provides better access to ideas as we improve the means to share knowledge, it is a multi faceted benefit that we experience from successful enterprise.

Enterprise constantly seeks new and better ways to deliver value to customers, it is through constant improvement that we see better system of commerce, breakthroughs in medical science, and with it longer, wealthier and healthier lifestyles.  What it also shows in the example given is the importance of it being private enterprise that assumes the risk associated with return for effort.  We don’t always succeed when we try something new and in the case of AT&T and British Telecommunications a loss on return resulted, something we would not find acceptable in political terms if it was a public institution playing with taxpayers dollars.

The most important lesson to take away today though is not to accept poor performance by customers that are slow in paying, you either need to improve your message in communicating the value of what you do so that they want to pay you on time, or consider if you need customers that don’t appreciate your value.

 

Trevor Dixon

Chairman Small Business Foundation

For more on “Enterprise” – The Art of Freedom, visit:

www.smallbusinessfoundation.org

 

Society needs to Unplug

I often get asked how I manage to fit everything in that I do and my default position is to jokingly reply that there are 36 hours in every day.  Coming from a military background, the concept of overtime is something that has never meant much to me personally and in my younger days as a manufacturing manager while not common every day I have done a number of round the clock shifts and one marathon at 32 hours.  Getting ahead is not a matter of luck, its about hard work and managing your time.

Close up of remote in hand with shallow depth of field during television watching

Now while there may not be more than 24 hours in a day you can accomplish far more than others around you by doing more with the time you have.  Small business owners do this from necessity, there is always an imperative to improve cashflow whether its from growth, slow seasonality, competition, there is always something putting pressure on business owners to do more hours at work.  Getting that balance right at home is even harder in this situation; conversely if you are an employee that simply wants to get ahead in life, you too can make more use of your time, be it to undertake studies or start an online business from home for example.

For my mind one of the biggest obstacles that challenges us for time is a problem of our own doing.  The box that sits in the lounge room might provide escapism and seem like leisure time but before we know it, 5 or 6 hours at night, a couple of hours in the morning and all of our available time can disappear.  Even if you don’t want to get ahead, the time spend with the family is a much better life work balance than sitting in front of a screen 24/7 and that includes mobile devices like smartphones.  My advice is simple based on when I find my most productive time – turn off the TV!

At home we spend the evening at the dinner table, chatting about things like why we there are rules not just enforcing them as parents.  The kids rarely watch TV during the week, spending their time in between family, music and sports and in my daughters case, ballet.  The art of conversation is essential if you want to get into business for yourself, small business especially is all about people, people and people.  If you can converse easily, break down trust barriers and establish a relationship it is much easier to communicate value to your customers, work smoothly with your employees and get great deals from suppliers.

During the financial crisis that hit world in 2008, one stimulus package in 2009 released $12.7 billion in cash payments, anecdotally that money was spent on flat screen TV’s.  That may not be far off the truth as the single biggest beneficiary, writing down $1 bn of corporate debts within one month of the stimulus release was Harvey Norman.  Over 90% of all stimulus money was used to reduce debts within a very window after being released, this is a very strong argument to suggest that it didn’t stimulate the economy at all…

The art of conversation starts at home, you can do far worse for your family than practising it from an early age and making it a habit they will appreciate when it comes time for them to make their own way in the world.  Conversations about bigger issues such as how to set the conditions for our economy to prosper above and beyond the tired old approaches taken by governments to date may also be possible in the wider community…

 

Trevor Dixon

Chairman Small Business Foundation

For more on “Enterprise” – The Art of Freedom, visit:

www.smallbusinessfoundation.org

Bureaucracy gone Mad

Have you ever dealt with a government owned enterprise (GOE) let alone a government agency and been frustrated to tears by the level of bureaucracy encountered…   You don’t have to be in business for yourself to answer yes to this, but the impact is certainly greater and ultimately impacts everyone in society as it slows down our economy.

Bureaucracy

Now I have to start off with saying I understand why the level of paperwork and compliance is so much higher in government entities, they are dealing after all with what is seem as “our” money.  A similar situation also arises in large corporations and what happens is the “system” is developed to ensure that every dollar is accounted for.  A whole level of activity, some call it employment arises with a layer of people busily checking the forms, approving payments and sending the documentation off to another Department to raise and send the cheque.

It is only two years ago that the fake prince, Joel Morehu-Barlow was sentenced to 14 years for theft of $16m from Queensland Health and the outcome from the public outcry would have been more checks and balances to ensure that it doesn’t happen again.  The downside in that sorry saga is that more people would have been added to the system and the net cost would have been significantly higher to prevent a fraud that the cost of the fraud to begin with.

Governments are notorious for the efficiency drives to try and balance their budgets, we even have a  Productivity Commission are the national level.  I find it an interesting conundrum that in the interest of efficiency we institute more institutions and bureaucracy that in and of itself slows down and makes transactions more costly.

I was chatting with a business owner who recently re-signed a maintenance service contract with a GOE, it was a 2+2+2 contract and they have been delivering an excellent standard over the previous 12 years that the customer is very happy with.  Cashflow is paramount to any small business and because of the bureaucracy in the system, this business raises invoices in the first week of the month.  What that means is that customers receive an invoice in the middle of the month, when half of the service has been delivered and they have the second half of the month to confirm that they are happy with the service.  That’s fair as the small business has outlaid almost all of the cashflow necessary to deliver the service by the end of the month ie wages cannot be paid “on terms” to employees.  The customer in this example processes the cheque payment at end of month and the business receives their payment towards the middle or end of the next month.

So, where is the problem!

Well, a new contracts manager picked up that you cannot invoice in advance for services, giving the business a three day window at end of month to not only raise and deliver an invoice, but to also produce a Statutory Declaration which has to accompany every invoice. A supplier that sinks or swims on its cashflow now has to wait another 30 days on top of the 60 days the system already creates as it is just not practical in a small business to have the internal bureaucracy to deal with this demand.

What message does it send to suppliers that we are want you to continue delivering the excellent service we have received for over a decade but the rules are the rules and we can’t pay you in a reasonable time now…

A little bit of understanding that Rules are for the Guidance of the Wise and the Blind obedience of Fools would however serve us all well.

 

Trevor Dixon

Chairman Small Business Foundation

For more on “Enterprise” – The Art of Freedom, visit:

www.smallbusinessfoundation.org

 

Science Sets the West Apart

We have not lived longer, healthier or wealthier lives than at any other time in the history of mankind than we currently enjoy in Western society.  We are however at a tipping point with the first time potentially about to hit us where the next generation may actually have a shorter life expectancy than their parents as a consequence of  the obesity epidemic.   This to me illustrates that the greatest threat to our way of life is not external, it is indeed our own ignorance, idleness and apathy.

armstrong_on_the_moon1

Prosperity while not equally shared in society has seen a massive improvement for all of society compared to generations past.  We live our lives here and now however and it’s easy to forget that our generation didn’t start out in life with microwaves, colour TV, automatic washing machines and iPhones.  That takeaway food was an exception and eating at a restaurant was a luxury…  Everything in life is relative but a little perspective and contemplation serves us well.

There is no doubt in my mind that while we have further to go and can do much better, we have come a long, long way to improving the lifestyle of mankind through the wonders of science and this has been possible through the economic rise of the West , the ability to share knowledge and ideas and have the latitude in a prosperous society to devote time and energy to scientific discovery.  Today is the anniversary of the day Neil Armstrong and Buzz Aldrin walked on the  moon.  It was the 20th of July in the United States and the 21st here in Australia.

This week just gone, Australia received the first HD images from Pluto, the radio telescope at Parkes transmitted the first pictures of the Apollo 11 moon walk in 1969.

Parkes, in central western New South Wales, was the site of the first radio telescope to be built in Australia. Its completion in 1961 was the result of ten years of of negotiation between CSIRO Radiophysics Laboratory staff, the Australian Government and significant American Scientific institutions, Carnegie Corporation and the Rockefeller Foundation. Affectionately dubbed “The Dish”, the telescope comprised a disc some 210 feet (64 m) in diameter, constructed of mesh woven from high-tensile strength steel designed to withstand a range of pressures. The total cost of construction was 800,000 Australian pounds.

 

Whether it is from investment by private corporations or tax payers dollars, the money has to come from the endeavours of enterprise.  No better example demonstrating this exists than the old USSR and today in Greece; centralised regulated economies run out of money.  Until the USSR passed the tipping point, it put the first man in space and everyone thought they were in the race to the moon.  You cannot continue to invest in science unless the conditions are set to allow enterprises to flourish, from wealth comes prosperity and the opportunity to either invest or be altruistic, either way knowledge and capability blossoms.

Our next challenge is both developing the knowledge to tackle obesity medically but more importantly, intellectually so that we beat it ourselves without clinical intervention.

 

Trevor Dixon

Chairman Small Business Foundation

For more on “Enterprise” – The Art of Freedom, visit:

www.smallbusinessfoundation.org

 

You’ve Got to do the Yards

It usually takes about 25 years to become an overnight success, and while we might see a plethora of reality TV shows launching the careers of singers and chefs along with the famous for being famous brigade of Big Brother et al the truth is that most of them do not go on to become true stars.  There are of course exceptions, Kelly Clarkson, Guy Sebastian, & One Direction come to mind as well as home cook Julie Goodwin and some of her compatriots who seem to spring up now and again.

Young businesswoman opening stage curtain to another reality

The banal reality TV stars though are most certainly 15 min of fame wonders with only one I can think of who has had a modicum of success as a radio host.  The true reality is that to be successful you have to do your apprenticeship, you need to acquire knowledge, apply it very well and become respected for what you do.  Once you develop expertise in your chosen field of endeavour you have an opportunity to become known for what you do; at this point if you harness it well you can command your market and demand a premium price for what you do.

A real success and terrific personality that is felt through the medium of TV is Maggie Beer.  She has not had any formal training as a chef, yet has an amazing career spanning almost five decades.  Her only paid cooking job was at a Scottish sailing school during a European trip in her early twenties.  The IPO of her company Maggie Beer Products is expected to raise $30 million, a considerable sum but one she has entirely earned from a lifetime of work and commitment.  Not everyone will make that sort of money from their profession, but it is up to you to learn, do the work and gain from what you deliver for others in life.

Maggie Beer says the greatest mistake she ever made was to give her company her name.

“Because, as such, we can never sell it. I couldn’t bear to sell the whole business. Over the last five to seven years we have had a lot of approaches to be bought and I have never entertained them,’’ she tells The Weekend Australian in an exclusive interview.

“I have spent all my life making sure there are no shortcuts. So the things that matter to me matter so much that no matter how attractive offers were, I said no.’’

Over the past 20 years Maggie Beer Products has grown to be one of the largest employers in South Australia’s Barossa Valley, producing more than 200 gourmet food products for local and export markets.  (1)
Very few people are lucky enough to put their hand into the proverbial bucket of compost and pull out a diamond ring, if you are however lucky enough to crack becoming expert at something very quickly that’s fantastic.  For the rest of us, it’s a matter of time not timing and continuing to put in the work.

 

Trevor Dixon

Chairman Small Business Foundation

For more on “Enterprise” – The Art of Freedom, visit:

www.smallbusinessfoundation.org

 

References

1. Damon Kitney, Victorian Business Editor,  The Australian: Full article here

We Get the Governments we Deserve

The foundations for a democracy to function are: a “Rule of Law’,  protection of “Individual Property Rights” and a system of “Commerce”.  This year we passed the 800th anniversary of Magna Carta but today is the anniversary of the Ballot Act which was passed in England on the 18th July in 1872.  This is a crucial condition for enterprise to flourish in any economy.

Hand of a person casting a ballot at a polling station during voting.

Introducing secret ballots to prevent undue influence by landlords and employers it’s a shame that it does not apply universally in elections of officials who have influence in the economy.  Electing particularly union officials that members want, not simply the ones who are able to bring undue influence or pressure to get elected is a step in the right direction to getting informed and progressive conditions being implemented rather than self interest and political futures.

Adding to the Rule of Law, the Ballot Act 1872 was an Act of the Parliament of the United Kingdom that introduced the requirement that parliamentary and local government elections in the United Kingdom be held by secret ballot.

The Representation of the People Act 1867 (the Second Reform Act) enfranchised the skilled working class in borough constituencies, and it was felt that, due to their economic circumstances, these voters would be particularly susceptible to bribery, intimidation, or blackmail.   The radical John Bright expressed concerns that tenants would face the threat of eviction were they to vote against the wishes of their landlord. It fell to Edward Aldam Leatham, husband of John Bright’s sister, to introduce the Ballot Act.

Many within the establishment had opposed the introduction of a secret ballot. They felt that pressure from patrons on tenants was legitimate and that a secret ballot was simply unmanly and cowardly. Lord Russell voiced his opposition to the creation of a culture of secrecy in elections which he believed should be public affairs. He saw it as ‘an obvious prelude from household to universal suffrage’.

Election spending was, at the time, unlimited and many voters would take bribes from both sides. While the secret ballot might have had some effect in reducing corruption in British politics, the Corrupt and Illegal Practices Prevention Act 1883 formalised the position and is seen by many to have been the key legislation in the attempts to end electoral corruption. (1)

These electoral practices in not only the Westminster but western democracies in general ensure that we have free elections where politicians advocate popular policies to get a majority vote and are in office for the electoral cycle.  While we often hear discourse lamenting the lack of political leadership and an unwillingness to take “brave” decisions which may not be popular.  Is lack of leadership really the problem though or should we be thinking more about our responsibility in being part of the solution…

To my mind we get the governments we deserve, Greece is a perfect example of that.  Perhaps we should be more focused on having informed conversations that ensure we attract intelligent people to politics because the electorate demands policies that are popular because they are the right policies to create prosperity and a future for us all, not a short term gravy train that has to crash in the future but the majority is too blind to see it.

On top of that the unrealistic expectation that politicians have no baggage, have no skeletons in the closet and the inordinate scrutiny in the media 24/7 also ensures that many good people with incredible minds and ideas shy away from public service. If we want to start creating the conditions for enterprise to flourish we really need to be thinking more about our individual responsibilities than being critical of our political parties and leaders.

 

Trevor Dixon

Chairman Small Business Foundation

For more on “Enterprise” – The Art of Freedom, visit:

www.smallbusinessfoundation.org

 

References

1. https://en.wikipedia.org/wiki/Ballot_Act_1872

 

The Benefits of Enterprise

An increased level of prosperity realised from the efforts of enterprise brings with it access to both modern medicines and the capacity to implement the social compact for the benefit of everyone.  Throughout the ages plagues and epidemics have killed millions of people up to 60% of the population in Europe in one case.  Today we worry about new diseases that we do not yet have cures for such as ebola and cancer but no longer fear things like the Bubonic Plague.

kill insects,professional sprayer, target,

Greater prosperity creates the means for businesses to invest in research to find cures and for governments to have the resources and authority to impose necessary imposts on society in order to control the environment and eliminate the means for disease to flourish.  An awareness of the benefits that come to everyone from the success of enterprises increasing prosperity in society is more important than any perceived inequity in an unequal sharing of the returns in business.

The 17th of July in 1900 was a Tuesday, and it was on that day that Sydney completed its Bubonic Plague cleansing operations following  a severe outbreak in the early part of the 20th century.  It began in January 1900 when 33-year-old Arthur Payne showed symptoms of Bubonic plague as a result of coming into contact with the disease at Central Wharf where he worked as a carter. Within eight months, 303 people had contracted the plague, and 103 of them had died.

Cleansing operations began in Sydney on 24 March. Extensive washing, liming, disinfecting and burning of property was undertaken, while buildings classified as slums were demolished in an attempt to rid the city of the rats spreading the disease. More than 44 000 rats were burned by rat-catchers. Wharves and docks were also cleared of silt, debris and sewerage.

The Cleansing Operations finished on 17 July 1900. However, ships continued to bring the disease to Australia, and between 1900 and 1925, there were twelve major outbreaks of Bubonic plague, with Sydney bearing the brunt of the disease. In all, 1371 cases were reported, along with 535 deaths – certainly far fewer than the deaths reported in some countries.

Bubonic plague is a zoonotic disease, circulating mainly in fleas on small rodents, and is one of three types of bacterial infections caused by Yersinia pestis (formerly known as Pasteurella pestis), that belongs to the family Enterobacteriaceae. Without treatment, the bubonic plague kills about two thirds of infected humans within four days.

The key to preventing deaths from this disease is treatment with antibiotics and eradication of rat infestations that carry the fleas which transmit the plague.  Today we understand the importance of rat proofing buildings, preventing access to food and shelter by rodents through appropriate storage and disposal of food, garbage and refuse; and the importance of avoiding flea bites by use of insecticides and repellents.  Rat suppression by poisoning is carried out  when necessary to augment basic environmental sanitation measures along with measures to control fleas.   We control rats on ships and docks and in warehouses by rat proofing or periodic fumigation, combined when necessary with destruction of rats and their fleas in vessels and in cargoes, especially containerised cargoes, before shipment and on arrival from plague endemic locations.

In 2013 there was about 750 documented cases of plague which resulted in 126 deaths a far cry from the 24 million in the 14th century, all possible because of our access to modern medicine and knowledge.

 

An Honest Conversation

I have consistently been saying that the Greek economy was showing signs of recovery until the election of Alexis Tsipras’ Syriza party and how this was a repeat of the same type of irresponsible policies implemented under the New Deal in 1933 to deal with the Great Depression.

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This is an OECD chart showing the steady rise in Greek GDP post the crisis of 2008 with a recovery resulting from starting to sort out their previous mismanagement. There is an instant return to crisis once the same old policies were re-introduced 5 months ago.

For me, this demonstrates the importance of the underlying strength in getting the conditions right in an economy. Similar weakness has been exposed in the Nordic countries for example, they appear fine when it’s business as usual but as soon as an external pressure starts to influence their cosy bubble the high levels of Government expenditures are exposed. Greece was exacerbated on top of that due to the low level of tax revenues they were collecting.

No democracy will willingly vote for increased taxes and reduced services unless there is real leadership and honest communication from their political leaders about why it is in their real interests…

My Customers Don’t Get It

Conceptual illustration of a silhouette man seated on a question mark icon in a thinker pose deep in thought. Could be concept for any questioning or psychology, poetry or philosophy.We seem to see  videos, anecdotes and caricatures that at face value confirm our own particular paradigm of a political or other stereotype that we view the world through.  The funny thing is more often than not, the same examples are used by people on the other end of the spectrum to confirm the way they see the world.  In the business world this can set a dangerous precedence where our opinions can mean we miss opportunities to provide value to our customers and don’t close a sale!

 

I’ve seen this so many times it’s not funny and this particular video is no exception, the reason I have reproduced it here is a desire to look at a higher level of understanding at what is really going on and apply the lessons learnt in our approach to the way we see customers.

It popped up on my Facebook feed and the obvious comments made by most people related in general to a characterisation of the suspected voting habits of the individuals propositioned and even more disparagingly that they must be the “dumbest”people on earth. While there may be an obvious message at face value about peoples mental capacity, I believe that as business owners or salespeople we need to consider a higher level of understanding than that.

Have you been approached by a charity on the street seeking donations to their “worthy” cause, received phone calls telemarketing you at home or even more general, how much do you enjoy the commercial breaks on free to air TV?  There is a feeling of imposition at being propositioned and on a broader level even a fear of cold calls, the possibility of scams that abound in society today are a part of this but really, we do not like being “sold to”.  We are uncomfortable and have a healthy level scepticism, we are wary and suspicious of salespeople.

This is something very real to be aware of; the responsibility must lie with the vendor to articulate their “value” to consumers.   It is not going to accomplish very much if your default position is to view customers through your paradigm and blame them when they don’t see the value that you perceive as obvious  in your offer.    Understanding the dynamics of establishing a relationship and being able to hold a conversation that articulates or demonstrates your value will move you beyond a discussion of what is your price and into the position of trust, a desire to buy from and ongoing repeat sales opportunities.

The old saying about letting the cat out of the bag stems from this fear of salespeople stitching you up and seems to me to be the underlying conversation that is seen in the video. People will trust what they know unless you explain the value of something different to them!

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The background to where I found this and other interesting videos;  

Mark Dice is a media analyst and author who has been featured on the History Channel’s Decoded, Ancient Aliens, and America’s Book of Secrets; Conspiracy Theory with Jesse Ventura, Secret Societies of Hollywood on E! Channel, America Declassified on the Travel Channel, and is a frequent guest on Coast to Coast AM, The Alex Jones Show, and more. His viral videos have received more than 100 million views. For business inquiries & requests for licensing Mark’s content, email him though the “E-mail Mark” link on MarkDice.com.

In an entertaining and educational way, Mark exposes our celebrity obsessed culture and the role the mainstream media plays in shaping our lives. He is the author of several bestselling books on secret societies and conspiracies, including Inside the Illuminati and The Bohemian Grove: Facts & Fiction. Order his books in paperback from Amazon.com, or download the e-books right now from Kindle, iBooks, Nook, or Google Play.

And finally;

Some good follow ups on the higher level conversation from some of my friends that you may find useful..

Context for sure and reference of a silver bar is rare. Now try it with a gold bar and see result. Too many people simply don’t understand the economics of their choices and struggle to reference value. It would have been interesting if they tried an even dumber 3rd option to see if it changes the result. Thanks for sharing.

A few thoughts. An offer without context is generally a disadvantage to the seller. When the customer doesn’t understand what’s in it for you, they generally respond with skepticism. Here’s an example. If the meter has run out and I’m desperately in need of a quarter because the meter maid is at the end of the block, I might be willing to exchange a $5 bill for .25 to save myself a $40 ticket. In this case, a quarter is worth five bucks to me. If I explain that clearly to a passerby, they are more likely to help me out and see it as a good deal for themselves because they also see why I might be placing a higher value on the transaction. However if I just walk up to a random person and offer them 5bucks for a quarter, they are more likely to respond with skepticism because they can’t see a benefit to me in the arrangement. It has to be both a good deal to the buyer AND they have to see what’s in it for the seller, otherwise it is too good to be true. In this case a free 99cent item is more believable than something of greater value without the context. My guess is that if the guy explained that he was conducting an experiment to see which free item people prefer, more people would select the silver because now they know the motivation of the “seller”.

 

 

The Emotive Discourse of Envy

I often get into trouble for stating that most peoples opinions are based on emotion and hold little context when scrutinised against the yardstick of facts. I don’t make this observation lightly simply to proves a position of superior intellect… Quite the opposite, most people who know me understand that I’m not the sharpest tool in the shed; I do however like to think I am not the dumbest either! The reason for being deliberately confrontational is to get us thinking about what is really going on and getting to the root cause of our problems rather than a superficially shallow discussion around the obvious symptoms that manifest themselves.

The issue of Greece is not just a Greek issue. Their ruling class and international capital created their situation. Why should the Greek people pay for their ruling class greed? We are doing the same. The sooner we all recognise that and change society the better the world will be

Capitalism or Socialism concept. Street sign pointing to opposite direction. Choose between.

Capitalism or Socialism  Choose between.

Quite simply, because they have a democracy which indeed is the very basis that all democracies are based on! If what you say is true, and I’m not saying it is, then the people elected their “ruling class” and mandated the policies that they are now suffering as a consequence of and are expected to contribute to solving….

What are the alternatives that you want to change to if not a democracy that elects governments to implement lawful expenditure and taxation policies?

Are you really suggesting, that we have a genuine democracy? “lawful expenditure” we spent more on Gallipoli than the British whose war it was, cuts have taken place in almost every area of public need, not even going near taxation, and who doesn’t pay it. Having the right to vote does not a democracy make. Go on google and type in steps to fascism and examine where we in relation to democracy, tell me what you think after reading the steps

I have never advocated that our system is perfect but have consistently stated that it has achieved more for mankind than any other since our existence on this planet. The real conversation here is if you can demonstrate anything different to what has been tried before and can explain how it will achieve better results then lets discuss it.

My entire argument is that emotive discourse on a basis of envy does not inform any discussion about a better system than the one we have… and yes when our elected government has to pass through parliament its budget every year, we have lawful expenditure based on democracy.

So, what do you suggest is the alternative to the system we have where the citizens of this great country elect their representatives, who then pass legislation and every three years under our constitution we decide if they are doing what we want them to do?

It sounds OK, but when you have two major parties dominated by capital, both national and international, and when the trade unions are muzzled, and the media is a joke, what changes when we vote. “lawful expenditure based on democracy” I don’t think so, and I don’t think the one million living below the poverty line or 350,000 without secure housing or the sick an disabled or the six people fighting for every individual job, nor families not able to afford education for their kids and on and on and on. Sure they can vote, big deal

We can discuss an alternative when we agree that the current system has failed. Failed nationally and happy to debate how it has failed internationally.

Show me how the current system has failed… very interested to understand that? I agreed with you that it wasn’t a perfect system already, no argument on it being perfect so not sure why you’ve asked me that question. So, what is the alternative? How do we create a better system for people to prosper that can achieve better results than you have pointed out as the failings in a market based democratic economy?

As a student of politics I do have an alternative, is socialism. Now you will say, like many, that it didn’t work, my response to that is, we have to make it work, because capitalism certainly doesn’t and can’t because it is based entirely on profit not need, and we are in a new paradigm where international capital controls the world and they certainly are not going to share the wealth, what is your alternative or do you think we can make capitalism work for the majority and if so, how?

Now, I push hard truisms in debates because I know we can create a more prosperous society. Yes, you are right in what I would say about socialism but that’s not the point of the conversations I get involved in.

I’m not about inane attempts to “disprove” someone else’s opinions, that’s egocentric and self serving; my interest is in starting discussions and dialogue about misconceptions and misunderstandings about why things are not working as well as they could and how we can do them better…

I admire Thomas Picketty’s work very much; he has conducted an incredibly deep body of research and draws powerful conclusions from it. He is in the game, but I believe that his starting premises are wrong and that rather than proving socialism is an alternative that must be explored because capitalism has failed, we should be looking at his overarching premise to begin with.

I believe he actually demonstrates why an understanding of how setting the conditions for an equal opportunity for everyone to prosper is critical to lift people out of poverty. This is not a “rule of the jungle”, it is a level paying field for return on effort. My objective is to start a conversation in society on how we can elect great politicians to implement a system that works for all of us, we can use our democracy to deliver a strong social compact protecting those who cannot look after themselves while at the same time continue the meteoric rise in wellbeing for all mankind that prosperity brings.

I agree completely with your observation about both major political parties; many people make a natural assumption that I am a right wing thinker but that is a two dimensional concept I do not ascribe to, fascists and socialists will not solve the problems of the world despite the best of intentions either may start out with. We need to be creating an understanding of the social fabric on a multi-dimensional basis and electing like-minded politicians.

I can go into quite a detailed explanation of that but on Facebook it is a bit difficult to write up a thesis. You can however as a starting point check out the manifesto of my not-for-profit foundation here:

http://smallbusinessfoundation.org.au/#manifesto

How German Reparations compares to Greek Bailouts

A friend comparing all final claims on German reparations from WWII being absolved in the final 1990 international accord after reunification started this conversation:

I feel it somewhat ironic that Germany can insist that Greece pays back its debt. The country defaulted three times in paying its debt and war repatriations in 1932, 1938 and 1948. Furthermore in January 1923 France and Belgium invaded the Ruhr to demand that Germany find the funds to pay its war debt. Helped lead to the rise of a certain Adolf Hitler!

Close up of flags of Germany and Greece

Who is Right Germany or Greece?

I don’t think that the stalling on Germany providing more bailout funds is because Greece hasn’t made payments; the conversation is all about how will Greece stop the haemorrhaging in it’s overspending and under collection of taxation revenue, a two-fold problem of it’s own creation. The Germans quite rightly don’t want to give more money if there is no prospect of any change in the conditions, which created the current crisis.

Very different consideration when making repayments to someone who has kindly lent you money to defaulting on reparations to right a wrong but you’re working hard on repairing your economy so that you can recover and then make payments.

Germany fixed it’s economy, so much so that even at the end of WWII it’s economic output was at the same levels as the start of the war and has continued from strength to strength today. A good example of getting the conditions right and perhaps worth the while of the Greeks to listen!

Given the correct analysis from you, but is it possible to fix the economy while in the Euro? Iceland bankers went back to fishing after their default.

I personally think that Greece being out of the Euro is the best way to fix their economy as they take back control over monetary policy.

Still a lot of pains involved as assets are lost to their creditors as part of the debt absolving in that scenario. Many people think that a default means that the debt if absolved and the world is good… There will be state securities in place that the creditors will take over and the Drachma once reinstated will be very weak. A weak drachma will be excellent for exports and tourism but will be very bad for investment in all domestic enterprise until confidence in the Greek government and new Greek bonds recovers. A huge risk however is hyperinflation and the potential requirement for humanitarian aid.

Perhaps most important of all either way is that sensible conversations take place that allow the Greek people to start electing good representatives that implement conditions to create incentive and reward for effort in their economy instead of populist policies designed only for their personal reelection.