Sunday, July 11, 2010

King Coal Australian Style

Australia is the world's largest exporter of coal (and iron ore.)  The growth of the industry has had negative economic outcomes for Australians not in the coal industry.   The currency has risen, hurting other export industries.   The cost of  borrowing (interest) has also risen, squeezing consumers and other industries.   There is a shortage of skilled workers available for other industries as well.

In an effort to ameliorate these economic distortions, Australian Prime Minister Kevin Rudd tried to increase taxes on coal and decrease them on other industries.   In June coal had him booted out.

John Williams in his book Captains of Industry describes the conscious efforts of big coal to control both WV's and the nation's policies to coal in an effort to insure no barriers to profits.   AT Massey blatantly continued this policy with his "buying" a WV Supreme Court Justice.

Kind Coal Australian style, is just another example of corporate SOP (Standard Operating Procedure.)






No comments:

Post a Comment