I read a headline in the Australian newspaper yesterday (March 19) – Nation building funding crisis as private sector fails to find cash. What? Nation building requires significant budget deficits. When was it dependent on the private sector having to trump up cash? I soon recalled that we have been living in the Public Private Partnership (PPP) era where governments have relinquished their responsibilities to build essential public infrastructure that not only supports a sense of public good but also underpins the prosperity of the private market economy. Its that time again. Time to debrief.
Two stories today make you wonder about the direction of our Australian government. The first relates to the changes to the industrial laws that the Greens finally were able to push through the Senate last night and the second relates to the threat of mass censorship using lists that are seemingly highly flawed.
Put People First group are running a grass roots campaign for all of us to send a message to the G20 about their priorities. The campaign symbol is the megaphone logo appearing below. Their campaign will culminate in a march in central London on March 28, 2009 to push a case for jobs, justice and climate. I am not associated with this group but I share their priorities, even if I might see them in different terms. Anyway, this is the first of my messages to the G20. In summary: they need to learn how the economy actually operates and then they would use their fiscal policy capacity to ensure everyone has a job in a sustainable economy.
Many readers have asked me to explain why social security and pension schemes run by national governments can never become insolvent. Some have heard me commenting on the radio recently about this. In the current recession, where automatic stabilisers are pushing the budget back into deficit to dampen the fall in aggregate demand there are now renewed cries that social security funds around the World are likely to become insolvent. There are the familiar howls that all the “debt” that is being built up as governments go into deficits (mostly because they have been dragged into them by the cycle) will require huge future tax burdens that will undermine the capacity of governments to deliver adequate social security and health care systems. I think its time to de-brief again. The short answer to these claims is: sovereign governments can always fund social security in their own currency. Always, always, and even always.
Today I heard that our Federal Finance Minister Lindsay Tanner is suffering from insomnia because of the growing Government debt burden. Poor thing. Why is he worrying himself sick? Well I have the cure. If he reads this blog and understands it I think he will back in slumberland sooner rather than later.
Yesterday, the Opposition leader published his reply to the Prime Minister’s grand attack on neo-liberalism. He claims that the apart from hypocrisy, the PM’s other failing is that he is mimicking a “corrupt police officer” because his essay attempted to blame the former Federal regime “for crimes it did not commit”. It is time that we understood just how bad the previous Federal government was.
Yesterday, the Living Garden section of the Newcastle Herald published an interview with me on their Profile page. After requesting (and publishing) a short bio they asked me a series of questions. Here is the transcript of my answers and note the whole profile was restricted to 800 words.
There is an interesting labour market case of national interest at present relating the the overpayment of Special Air Service (SAS) troops who have been serving in Afghanistan and who have faced debt recovery action for such overpayments of allowances of up to $50,000. The case has led to calls for the Federal Defence Minister to be sacked for daring to ask our soldiers to pay back the cash. Another labour market group has for years been subject to so-called “debt-recovery” actions from the Federal government and the sums are nothing like $50,000. Yet the press has been largely silent on the plight of this latter group even though I would argue they are among our most disadvantaged citizens. The juxtaposition highlights the inconsistency of the public debate and the selective treatment of individuals by our Federal government who should be treating us equally according to our rights as Australian citizens.
In the PMs xmas message he says that as Australians we enjoy “a prosperous and successful society, there are more Australians in work than ever before, our living standards are high and we are warmly regarded around the world” and that we should not to forget our less fortunate citizens.