Roger Kerr

Understanding Profits

“Water services should meet the cost of the capital they employ (that is to say, make normal profits), just like other utilities such as electricity and gas. If they don’t, capital will be misallocated because it could produce more social value in other uses.”

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Financial Turmoil: Market Failure or Government Failure?

Third, we have learned yet again that government regulation often does more harm than good. As the Wall Street Journal observed, the great irony is that the banks that made some of the worst mortgage investments were the most highly regulated. Bank regulators cannot possibly spot all weaknesses. More emphasis must go on caveat emptor – investors and depositors beware.

Let Them Eat Fruit Kebabs

Rather than assuming people are generally fit to make their own decisions and allowing them to bear or enjoy the consequences, good and bad, the paternalist state focuses on diminishing their access or temptation, treating them as weak, impressionable victims, prey to advertisers and retailers, who need to be protected from their own foolishness.

Australia Rising

Speaking last week to the Queensland Media Club, Australian prime minister John Howard described the sort of world Australians would be living in a decade from now, and his vision of “an Australia rising to new heights” to meet its challenges. In a speech full of...