ECONOMICS

Section: ECONOMICS

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  • ECONOMICS

    Budget's bank slug flouts the property precipice

    • David James
    • 09 May 2017
    3 Comments

    The $6.2 billion the government will raise through a levy on bank liabilities not only shows how out of favour banks have become, it is also, in effect, a de facto tax on property lending - a counterbalance to negative gearing and capital gains tax breaks. It is a tax on property lending because nearly all the banks' loans are mortgages for housing, or business loans secured with property. Of course the banks will pass the extra cost on to their customers, so it becomes a tax on borrowers.

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  • ECONOMICS

    Beyond fake news lies the fog of fake figures

    • David James
    • 01 May 2017
    6 Comments

    Fake news aside, increasingly, we live in a world of fake figures. There is a cliche in management that 'what gets measured gets done'. In public discourse that might be translated to 'what gets measured is considered real'. One obvious fake figure is GDP, which is taken as a measure of national wellbeing. In fact, it is just a measure of transactions. If money changes hands because something disastrous happens then GDP will rise. That is hardly an indicator of national wellbeing.

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  • ECONOMICS

    The language of exploitation in the online labour market

    • Daniel Nicholson
    • 23 April 2017
    3 Comments

    When you are in the business of exploiting people, language matters. A recently leaked document from Deliveroo is geared to emphasising that the people who deliver food for Deliveroo are and should remain independent contractors, not employees. In 2016, a Unions NSW report into the employment practices of gig-economy company AirTasker categorised the online labour market as 'unregulated Taylorism within a Dickensian marketplace where workers compete for bite-sized fragments of labour'.

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  • ECONOMICS

    Deconstructing the privatisation scam

    • David James
    • 03 April 2017
    12 Comments

    It is increasingly evident how pernicious the privatisation myth is. Two recent examples have underlined it: the failings in Australia's privatised energy grid and the usurious pricing in airport car parks. Both demonstrated that it is folly to expect a public benefit to inevitably emerge from private profit seeking. The purpose of government funded public infrastructure is not to make profits but to lower the cost of doing business, sometimes called the socialisation of the means of production.

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  • ECONOMICS

    Penalty rate cuts are the result of thinking small

    • David James
    • 06 March 2017
    17 Comments

    Witnessing the debate over Sunday penalty rates, an intriguing pattern of thinking emerged. It can be characterised as a microcosm/macrocosm duality. Those arguing for lower Sunday wage rates demonstrate their case by talking about individual businesses, the micro approach: 'Many businesses would love to open on a Sunday and if wage rates were lower, they would. Unleash those businesses and greater employment will follow.' Superficially impressive, this does not survive much scrutiny.

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  • ECONOMICS

    Trump's pro-globalisation critics miss the key questions

    • David James
    • 06 February 2017
    10 Comments

    Many defenders of globalisation express frustration at the rise of Trump and what they see as an ignorant and self-defeating backlash against its virtues. But they have no answer to the most pressing question: Is the global system there to serve people, or are people there to serve the global system? They also never address a central contradiction of globalisation: that capital is free to move, but for the most part people are not, unless they belong to the elite ranks.

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  • ECONOMICS

    Financial literacy programs need to get real

    • Rachel Kurzyp
    • 15 December 2016
    8 Comments

    Studies have found that in Australia, groups with the poorest financial awareness and skills are those under 25, those with no formal post-secondary education, those on low incomes and working 'blue collar occupations', and women. While it makes sense to provide these groups with financial information on home loans and super, this wouldn't have helped my mother when she had to decide between, say, buying groceries for the week or getting the car serviced.

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  • ECONOMICS

    Hollowed out labour market stymies equal opportunity

    • Veronica Sheen
    • 12 December 2016
    5 Comments

    Over the last two decades we have seen a process of job polarisation. There has been growth in high end jobs, but mostly in low end jobs, the outcome of which has been the hollowing out of middle level jobs. This hollowing out of the middle also relates to greater wealth polarisation, as French economist Thomas Piketty has brought to light. The labour market is under a lot of pressure from many angles, so what does this mean for the project of women's equal opportunity in employment?

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  • ECONOMICS

    Wage inequality is a bigger threat to workers than robots

    • David James
    • 20 November 2016
    9 Comments

    The idea that machines will replace humans, transforming the work force, is far from new. As technology develops at an accelerating pace, there is growing concern that new social divisions are emerging. While there are signs of deepening social divisions between the rich and the rest of the working population, previous predictions of a collapse in employment have proven to be wrong. This is largely because a confusion arises from conflating production and transactions. They are not the same thing.

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  • ECONOMICS

    It will take more than a royal commission to tame the banks

    • David James
    • 09 October 2016
    2 Comments

    The strategy of the Big Four banks' appearance in parliament was clear enough. Blame the whole thing on a need to improve impersonal 'processes', imply that there have been a few bad apples but overall things are fine, and promise to do better in the future. The greatest challenge was probably to hide the smirks. A royal commission is being held up as an alternative, and no doubt it would be more effective. But a royal commission would not address the main issue.

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  • ECONOMICS

    Morality is back on the economic agenda

    • Andrew Hamilton
    • 19 September 2016
    4 Comments

    It is a welcome change to see budgets spoken of in moral terms. The government recently insisted on a moral responsibility to future generations to fix the deficit. And the Australian Catholic bishops welcomed on moral grounds the compromise that saw dropped from the budget measures which would further disadvantage vulnerable people. The difference was that the government's argument was focused on the budget, whereas the bishops' focused on particular groups of people.

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  • ECONOMICS

    The bad business of privatisation

    • David James
    • 12 September 2016
    18 Comments

    The argument that putting government operations into private hands ensures that things will run better and society will benefit is not merely a stretch; it is in many respects patently false. The argument is based on the claim that the market always produces superior price signals. Yet one area where private enterprise definitely fails is long term stability. If there is an expectation that a privatised service should last in the long term, and usually there is, then selling it to business is a bad choice.

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