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Britain is now free of the legal neoliberalism that has killed prosperity in Europe

So Britain finally became free – sort of – from the European Union last week. I haven’t fully read the terms of the departure but the progress I have made so far in the text (several hundred pages) leads me to conclude that Britain has not gone completely free from the corporatist cabal that is the European Union. The agreement will see a Partnership Council established which locks Britain in to an on-going bureaucratic process dominated by technocrats – the sort of things the EU revels in and gets it nowhere. Overall, though, despite all the detail, Britain’s future policy settings will be guided by its polity and resolved within its own institutions. That means that the Labour Party has the chance to really push a progressive agenda. I doubt that it will but there are no excuses now. Which brings me to look at some data which shows how the fiscal rules imposed by the European Union, particularly in the 19 Member States who surrendered their currencies, have constrained prosperity and worked against everything that citizens were told.

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Not enough food: The case for a Just, Urgent and Sustainable Transition continues

Today, we have a guest blogger in the guise of Professor Scott Baum from Griffith University who has been one of my regular research colleagues over a long period of time. He indicated that he would like to contribute occasionally and that provides some diversity of voice although the focus remains on advancing our understanding of Modern Monetary Theory (MMT) and its applications. It also helps me a bit and at present I have several major writing deadlines approaching as well as a full diary of presentations, meetings etc. Travel is also opening up a bit which means I can now honour several speaking commitments that have been on hold while we were in lockdown. Anyway, over to Scott …

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British Labour remains unelectable

What are the prospects for the British Labour Party? Since losing office in 2010, they have lost 3 subsequent general elections against one of the worst Tory governments in history. The government exemplifies bumbling incompetence. But that seems to be all that is required to outwit the Labour Party and its advisors. Since the disastrous December 2019 election, nothing much seems to have changed. Well, that is not exactly right is it. Things have become worse. They scrapped a leader that a significant portion of MPs could not support after having undermined him relentlessly in the leadup to the last election. It was as if they preferred to lose than have Jeremy Corbyn as Prime Minister. Then they kicked him out of party representation because he apparently has failed to ratify the dirty campaign against him. The new leader, was one of the most vehement proponents of the strategy that saw Labour turn its back on voters who had elected the majority of its MPS and keep harping on about a second referendum on Europe. The denial of the Brexit vote and failure to become the voice of Brexit cost Labour the last election no matter what those who try to manipulate the data to say something different might have you believe. The new leader also appears to be losing credibility over his purge of the previous leader. One can be as smooth and sophisticated as one likes. But if you don’t tell the truth, eventually, you pay the piper – even Trump has found that out, not that he exemplifies either smoothness or sophistication. And the other death knell – their fiscal rule – looks like it is now being recycled by the new Shadow chancellor. That means they will go to the next election in an unwinnable position because the citizens that they have conditioned to believe in the neoliberal macroeconomic fictions will, in turn, not believe that the Party can deliver a progressive agenda without causing financial chaos. You reap what you sow. So it doesn’t appear that they have learned very much so far.

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ABCD, social capital and all the rest of the neoliberal narratives to undermine progress

I was in a meeting the other day and one of the attendees announced that they were sick of government and were looking at other solutions such as social capital and community empowerment to solve the deep problems of welfare dependency that they were concerned about. The person said that all the bureaucrats had done was to force citizens onto welfare with no way out. It had just made them passive and undermined their free will. It was a meeting of progressive people. I shuddered. This is one of those narratives that signal surrender. That put up the white flag in the face of the advancing neoliberal army intent on destroying everything in its way. The ultimate surrender – individualise and privatise national problems of poverty, inequality, exclusion, unemployment – and propose solutions that empower the individuals trapped in ‘le marasme économique’ created by states imbued with neoliberal ideology. The point is that the Asset-Based-Community-Development (ABCD) mob, the social capital gang, the new regionalists, the social entrepreneurs are just reinforcing the approach that creates the problems they claim they are concerned about. The point is that it is not the ‘state’ that is at fault but the ideologues that have taken command of the state machinery and reconfigured it to serve their own agenda, which just happen to run counter to what produces general well-being. That is why I shuddered and took a deep breath.

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Politics in a Podcast – fiscal statements and the pandemic future

It’s Wednesday and just a few things today while I attend to other things (writing, meetings, etc). I will have an interesting announcement to make in a few weeks (around then) about a project I am working on that I hope have wide interest. Today, we have a podcast I recorded a few weeks ago with the Politics in the Pub, Newcastle group – now, in this coronavirus era being rebadged and reformatted as Politics in a Podcast. And then we celebrate a great musician who died last week but left some memorable songs for us to take into the future.

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Tracing the roots of progressive views on the duty to work – Part 5

This is Part 5 of my on-going examination of the concept of ‘duty to work’ and how it was associated with the related idea of a ‘right to work’. In Part 4, I demonstrated that the dual concepts were long-standing ideas and the emergence of neoliberalism distorted their meaning by, one, abandoning the commitment by governments to facilitating the right to work, and, two, perverting the meaning of duty to work. Neoliberalism thus has broken the nexus between the ‘right to work’ responsibilities that the state assumed in the social democratic period and the ‘duty to work’ responsibilities that are imposed on workers in return for income support. That break abandons the binding reciprocity that enriched our societies. In this part, I examine the way in which full employment and work has been treated within the justice literature to extend the notion of reciprocity that we discussed in Part 4. In Part 5 I will consider how this bears on discussions about basic income and coercion.

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MMT blows the cover on the fictional world of mainstream economics that serves class interests

Given I presented a full analysis of the National Accounts release yesterday, I am calling today Wednesday and not writing much by way of blog posting, to give me more time to write other things that have to be done. But there is one issue that I will deal with today and regularly comes up and indicates that we are making progress. And after that we can all ‘Rise and Shine’ with some beautiful music.

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Tracing the roots of progressive views on the duty to work – Part 4

This is Part 4 of my on-going examination of the concept of ‘duty to work’ and how it was associated with the related idea of a ‘right to work’. In Part 3, I extended the analysis to the Western democracies of the Post World War 2 period and found that progressive political parties and movements firmly considered the two concepts to be fundamental elements of a progressive society. In this part, I extend that analysis and consider ways in which the ‘duty to work’ has been justified, drawing on the idea of reciprocity and social obligation. I also show how the emergence of neoliberalism has broken the nexus between the ‘right to work’ responsibilities that the state assumed in the social democratic period and the ‘duty to work’ responsibilities that are imposed on workers in return for income support. That break abandons the binding reciprocity that enriched our societies.

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More political interference from the central bank – oh but its independent!

At last week’s National Cabinet meeting (August 21, 2020), the governor of the Reserve Bank of Australia continued to play a political role in the economic debate despite hiding behind the veil of ‘independence’ from such matters. A few weeks ago, the federal government claimed the state and territory governments were not doing enough by way of fiscal stimulus to reduce the job losses associated with the pandemic. The Federal government is essentially trying to force the political consequences of its own failure to increase its net spending by enough and the resulting real economic damage that has resulted onto the states and territories. The RBA governor seems to be playing along with this agenda. Last Friday, he called for the states and territories to double their fiscal stimulus outlays (by $A40 billion) and stop fussing about credit ratings. The problem is that if they did that, the conservatives would immediately start claiming the debt was unsustainable and would damage the states’ credit ratings. Just as they regularly do to advance their political agendas to cut the size of state governments. While the mainstream economists urge ‘fiscal decentralisation’ they do so because they know states are not currency issuers and will then be open to attacks about tax burdens etc, which then bias the political debate towards cutting services etc. In general, the spending responsibilities should be at the level of the currency-issuer. And, the RBA governor should get back to fulfilling the legal charter of the RBA – to ensure there is full employment and price stability. His institution is achieving neither – with negative inflation and massive labour underutilisation. If he really wanted to increase job creation he could signal that the RBA would purchase any debt issued by governments at all levels who announced, and, made operational, large scale job creation programs. That would work.

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