Michael Kroger and His “Brains Trust” – The H. R. Nicholls Society. (2)

Why do union officials smile and giggle at the names, Des Moore, Ray Evans, et al. (Kroger’s ‘brains trust’), and call them “clowns” and pompous asses? Why would an executive, rolling his eyeballs and giggling, say, their economic advice is “instant ruination”? Why could Bellchamber write a mushy article dedicated to trampling all over Des Moore? Why, a female journalist told me, does the media refer to the HRNS as Des Moore’s “pr. agency”? Reading only 3 articles on the HRNS website told me why.

The HRNS failed in mounting the public case for freeing labour markets. The reasons why are in the open: flawed economics. Flaws, it emerges, are only defects, because they have only conceded the entire ACTU false case. The flaws underpin why they have, such as:

The price of labour is indeterminate;

The definition of pay is nominal pay only – not total effective pay, inclusive of, e.g., payroll tax and other non-cash components.

Not even mentioned is the theory of the marginal productivity of labour, and thus missed is: it explains labour receives the full value of its product (a truth the ACTU won’t touch it in public if it can avoid it).

No hint of, capital accumulation raises pay to labour, and the ratio of capital to labour sets minimum wages in a free market.

The HRNS’ own novel contribution to economic theory: ‘ratio of the minimum wage to the median wage’: when it is too high, unemployment ensues (positive correlation). The ‘ratio’ is their solution to the (false) dilemma of indeterminacy, and why unemployment. It concedes all the above points.

They are oblivious to: it is not the height of the minimum wage that is decisive, it is the effective minimum wage that counts. For a minimum rate to be effective, it must be above the market rate, and it is the effective rate that causes unemployment. That a minimum wage is no more than equal to the minimum wage is not effective, it is ineffective. The HRNS “ratio” is nonsense.

There are other thorns such as, free markets continuously recalculates wage rates, so what, in a nutshell, the market rate is, and what is or is not an effective minimum rate cannot be determined unless as subjects actually engaged in factor markets buying/selling.

It is totally lost upon that lot; a minimum pay rate is of no interest to the ACTU. What interests them is imposition of effective minimum wage rates, and in securing them make the Liberal Party and businessmen take the blame for ensuing unemployment rates. They want the public to agree to effective minimum rates, by convincing the public with false arguments. This does not gel at all with that lot in the HRNS, – Hugh Morgan, Des Moore, Ray Evans, and et al.

It doesn’t gel with them because, devoid of economic theory, unlike the ACTU, they don’t have a clue as to what the ACTU Unioncrats are about and what they seek. Neither, unfortunately, do they have a clue as to how to engage those who genuinely believe the ACTU case and for reasonable reasons such as:

They might have been mislead;

Trust in those who are paid to do the actual work in economics are doing it. The ACTU is not doing all of that. It engages the public, but it is not telling the truth. The HRNS neither tells truth nor engages the public ( the public being, as the left hold, irritants to thick hides ).

Besides, the HRNS have conceded the ground to not merely the ACTU but also to its hired advisers, Bellchamber and Gregory.

What is disgusting is, Moore and Evans have been made very wealthy men to do the work they do not at all do. Even more disgusting is, for all the money poured into the HRNS and affiliates, they are producing nothing of interest, only amusement and service for the opponents to freeing labour markets. It could be someone’s idea of a joke, but it is not a joke.

In contrast, there is someone in Australia doing the work single handedly, without the buckets of funding, Mr. Gerard Jackson. Jackson is simultaneously explaining economics for general readers, engaging them, attacking opponents of market liberalisation, and, on top of that, correcting the appalling errors committed by the sorts who stuff the HRNS, and who are stuffing up the case.

Evans and Moore have only been busy living off a gravy train; their “work” is immediate evidence of the fact. The next three items are dedicated to their articles, which demonstrate their conceit, self-satisfaction, laziness, and ignorance.

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