Friday, November 24, 2006

The Real Stadium Decision

It is easy to see that the proponents of the Waterfront stadium live in a sadly deluded world - just by looking at the comments of the main support base.
The most common reason you see given for supporting the Waterfront stadium is that: "the 1 billion is going to be spent anyway; so why not on this? / something we want?". Which of course is the saddest possible reason to invest in a project; it's not good enough to actually do - but hey we've got the money so lets spend it!

It also makes an ironic mockery of Cullen et al. claims that there is insufficient money for a tax cut - in fact this type of project is the precise definition within corporate theory showing where dividends lead to far better outcomes due to the removal of agency issues.

Lets face it - the real decision here is actually between the Waterfront stadium or Jade, but Jade with a $300 dividend (fully imputated) distributed back. And that is the connection and thinking that this Socialist driven Government has managed to supress. It has managed to pervert and subjugate the thinking of the country to such a degree that we cannot seem to actually make a real comparison anymore. No one I have spoken to refutes that the latter is a far better idea than the waterfront stadium; and yet surely this is the real underlying decision that is being made?

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