Australian economy

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Re: Australian economy

Postby Bam » 13 Dec 2017, 08:43

HBS Guy wrote:Boost NewStart by $50/week and see a surge in final demand!

Newstart was last increased over inflation in 1994.

The cost of living for the basics such as housing and energy has seen massively disproportionate increases for people on low incomes. Jobseekers have also seen significant increases in their costs because such expenditure as internet access, a mobile phone and a computer are now mandatory when looking for work. The so-called "mutual obligation" requirements also increases costs on jobseekers, and the government has not ever paid for these increased compliance costs with increases to the dole because the "mutual obligation" isn't actually mutual.

Restoring Newstart to the same purchasing power it had in 1994 would need an increase of closer to $100 a week.

Rent assistance also needs to be doubled. For singles, the maximum payment is $133.00 per fortnight for a fortnightly rent of $295.93 or more. How many places are available to rent for a single person for $295.93 a fortnight?
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Re: Australian economy

Postby HBS Guy » 13 Dec 2017, 09:02

Boosting the dole would boost the economy, why can’t the stupid Libs see that? We have seen the failure of cutting penalty rates—just cutting final demand in the economy.
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Re: Australian economy

Postby Lefty » 13 Dec 2017, 09:03

Bam wrote:Yes - our unemployment assistance regime is appallingly inadequate. "Punitive" might be a closer description. Punish the unemployed for the crime of being unemployed, even as our system quite deliberately creates a pool of unemployment at the bottom in order to serve as a shock absorber against inflation (which is yesterday's bogeyman) and advantage capital over labour.

Any meaningful increase would be helpful.

My first preference would be for government to re-embrace the old post-war policy of full employment, which ran for decades following the end of WW2 and successfully pushed Australia's involuntary unemployment rate down to almost effective 0% for all those years.

The modern version would be a job gaurantee, whereby government stands ready to offer as much employment as needed to fill the gap, at a rate equal to ( and only equal to) the basic minimum set down by law. Thus ensuring those unable to otherwise secure employment a basic living, while not competing with private sector and so not feeding inflationary tendencies.
Yes - our unemployment assistance regime is appallingly inadequate. "Punitive" might be a closer description. Punish the unemployed for the crime of being unemployed, even as our system quite deliberately creates a pool of unemployment at the bottom in order to serve as a shock absorber against inflation (which is yesterday's bogeyman) and advantage capital over labour.

Any meaningful increase would be helpful.

My first preference would be for government to re-embrace the old post-war policy of full employment, which ran for decades following the end of WW2 and successfully pushed Australia's involuntary unemployment rate down to almost effective 0% for all those years.

The modern version would be a job gaurantee, whereby government stands ready to offer as much employment as needed to fill the gap, at a rate equal to ( and only equal to) the basic minimum set down by law. Thus ensuring those unable to otherwise secure employment a basic living, while not competing with private sector and so not feeding inflationary tendencies.
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Re: Australian economy

Postby Bam » 14 Dec 2017, 13:23

Lefty wrote:My first preference would be for government to re-embrace the old post-war policy of full employment, which ran for decades following the end of WW2 and successfully pushed Australia's involuntary unemployment rate down to almost effective 0% for all those years.

The modern version would be a job gaurantee, whereby government stands ready to offer as much employment as needed to fill the gap, at a rate equal to ( and only equal to) the basic minimum set down by law. Thus ensuring those unable to otherwise secure employment a basic living, while not competing with private sector and so not feeding inflationary tendencies.

I have been looking at the universal basic income versus job guarantee debate for some time. I have decided that a job guarantee should be preferred.

There's no reason why two million Australians should be forced to live in poverty against their will, just to knock one or two percentage points off inflation. Why can't the spare capacity in the economy be taken up with useful work for award wages?

If anyone doubts that it can be done consider that last year Australians worked over $130 billion worth of unpaid overtime. Converting that into paid employment for the jobless would do a lot to reduce unemployment and poverty. We could almost eliminate involuntary unemployment by abolishing unpaid overtime and reducing the working week to 35 hours.
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Re: Australian economy

Postby HBS Guy » 14 Dec 2017, 13:40

Mobile phones and email means employees are contactable at all hours. If we had more workers belonging to a union then something could be done.
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Re: Australian economy

Postby Lefty » 15 Dec 2017, 06:59

HBS Guy wrote:Mobile phones and email means employees are contactable at all hours. If we had more workers belonging to a union then something could be done.


Happens to my brother all the time.
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Re: Australian economy

Postby Lefty » 15 Dec 2017, 07:51

Bam wrote:
Lefty wrote:My first preference would be for government to re-embrace the old post-war policy of full employment, which ran for decades following the end of WW2 and successfully pushed Australia's involuntary unemployment rate down to almost effective 0% for all those years.

The modern version would be a job gaurantee, whereby government stands ready to offer as much employment as needed to fill the gap, at a rate equal to ( and only equal to) the basic minimum set down by law. Thus ensuring those unable to otherwise secure employment a basic living, while not competing with private sector and so not feeding inflationary tendencies.

I have been looking at the universal basic income versus job guarantee debate for some time. I have decided that a job guarantee should be preferred.

There's no reason why two million Australians should be forced to live in poverty against their will, just to knock one or two percentage points off inflation. Why can't the spare capacity in the economy be taken up with useful work for award wages?

If anyone doubts that it can be done consider that last year Australians worked over $130 billion worth of unpaid overtime. Converting that into paid employment for the jobless would do a lot to reduce unemployment and poverty. We could almost eliminate involuntary unemployment by abolishing unpaid overtime and reducing the working week to 35 hours.


Yes, it's a deplorable situation. One made possible by the fact that Joe Public does not understand that the bulk of unemployment is involuntary and a creation of the system and that true "dole bludgers" are in the minority. And that the way policy is conducted ensures that there are always more people needing a job than there are actual jobs to be had.

The parable of 100 dogs and 94 bones sums up the situation in a way that anyone should be able to understand

As you point out, there was clearly enough demand for Australians who are already employed to do huge amounts of unpaid work on top. In addition, great sums of public money are spent on the "unemployment industry", comprising of entities like private job network providers who mostly just serve to shuffle the dole queue.

So discussions regarding the nature of a fully-sovereign fiat currency issuing government aside, there is clearly no shortage of resources to fix this. It continues to exist because those at the levers of power don't see it as a problem. As long as the electorate continues to believe that most or all unemployment is a voluntarily-chosen state, the ruse is easily maintained.

And the business community is happy with what is sees as a "Goldilocks" level of unemployment - low enough so that demand for their product isn't too severely hampered but high enough so that the threat of redundancy is always available as a weapon in their hands against organised labour. Workers are empowered when they can always walk out of one job and into another and the threat of falling into unemployment and poverty is all but non-existent. Menzies railed against the policy of full employment for exactly that reason - without explicitly stating that the logical summary of what he was saying was that he was in favour of a permanent pool of poverty and disadvantage so his mates in the business sector could fend off unions more easily. He just wan't game to go ahead and remove the policy that the Curtain Labor government had set in place at the end of WW2 for fear of political repercussions. The conservatives had to wait until the oil shocks of the 70's triggered runaway inflation through wage-price spirals before they could start dismantling the inclusive society.

As an aside, yesterday's labour force figures looked pretty good - but that merely reverses several weak months before it. I wouldn't say any trend is apparent just yet.
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Re: Australian economy

Postby HBS Guy » 19 Dec 2017, 10:28

Abbott & Co are going to cause the mother and father of all recessions—be prepared!
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Re: Australian economy

Postby HBS Guy » 19 Dec 2017, 10:32

the return to annual wages growth of 3 per cent or more has been pushed back from next year to the second half of 2019, underscoring that household incomes remain the budget’s weakest link.

Bump NewStart a bit and pensions a smaller bit—that money will get spent! Yes, means spending money—priming the pump. Instead the stupid Libs do the opposite and will dump more than half a billion dollars in welfare reforms but expects to pocket savings by targeting a new debt recovery method at families.

http://www.canberratimes.com.au/national/public-service/coalition-dumps-580m-in-welfare-reforms-but-targets-families-in-new-ones-20171218-h06hmh.html

Crazy! Kill off final demand!
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Re: Australian economy

Postby HBS Guy » 20 Dec 2017, 08:16

Number 3 tax cheat:

According to the latest tax transparency data from the Australian Tax Office, EnergyAustralia racked up 23.9 billion in revenues from 2014 to 2016. Tax expense … wait for it … zero.

While households in their thousands are simply “going off grid”, disconnecting because they cannot afford the exorbitant cost of energy, EnergyAustralia directors and executives have been rollicking in a 50 per cent pay-rise; up from $12.5 million to $17 million last year alone.

While 42,000 Australian families are now wallowing in “energy poverty“, this company – owned by a clandestine entity in the Caribbean – managed to eradicate almost all of its taxable profits, booking just $51.8 million in taxable income over three years on which it paid the glorious total of zero income tax.

While state governments scrambled for political solutions to the crisis, putting taxpayer money on the line to subsidise poor families unable to meet their power bills, EnergyAustralia has been rewarding PwC, its auditors and tax advisors, with $2 million a year in fees.


https://www.michaelwest.com.au/energyaustralia-nailing-energy-customers-and-taxpayers-to-boot/

I reckon big rainwater tanks, solar cells and a windmill will hopefully see me pay the absolute minimum to these avaricious, tax dodging, rip off charging areseholes!
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Re: Australian economy

Postby HBS Guy » 21 Dec 2017, 07:58

Snowy 2.0 will cost 50% more than first thought – and that’s BEFORE it starts! And transmission line upgrades will cost just as much again.

http://www.smh.com.au/federal-politics/political-news/snowy-20-will-go-ahead-but-cost-increases-50-per-cent-20171219-h07onp.html

Libs LOVE wasting taxpayers’ money and why not? They pay fuckall tax!
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Re: Australian economy

Postby HBS Guy » 21 Dec 2017, 08:37

Hmmmm, part of the cost of the ridiculous Snowy II scheme is to buy the shares of the NSW & Vic governments in the Snowy scheme. Big mistake to sell those shares—Malcolm will flog the whole scheme off to Chinese interests in a jiffy! Could be the whole justification of this harebrained idea (there are MUCH better places to build pumped hydro, ones that do not involve digging huge tunnels and building new transmission towers and lines etc.

Malcolm is an idiot, his ego is much higher than his intelligence!

Malcolm Turnbull’s Snowy 2.0 project could cost $7b

http://www.afr.com/news/malcolm-turnbulls-snowy-20-project-could-cost-7b-20171213-h04646
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Re: Australian economy

Postby HBS Guy » 03 Jan 2018, 08:01

Abbott & Co are going to cause the mother and father of all recessions—be prepared!
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