Sandpit

November 21st, 2014 12 comments

A new sandpit for long side discussions, idees fixes and so on.

Categories: Regular Features Tags:

50 years later

November 20th, 2014 12 comments

I once read a remark about the kind of bank advertisement that shows a proud young couple outside their first home, to the effect that it would be better to show them middle-aged, making the final payment on their 25-year mortgage, at which point the home would truly be theirs.

I have the same kind of reaction to the Queensland government’s (publicly funded, I believe) ads showing “ordinary Queenslanders” celebrating the fact that our public assets are going to be leased rather than sold under the government’s plan. Most of those in the ads are young (20s and 30s, I’d say). Even so, many of them will have passed on by the time the lease first comes up for renewal in 2064.
Read more…

Categories: Oz Politics Tags:

Subsidising coal

November 18th, 2014 31 comments

I was going to post on the Newman government’s announcement of subsidies to development of new coal mines in the Galilee Basin, but this piece by Michael West says it all. Key observation

The very day after the G20 concluded, with its recommendations about ending government subsidies to fossil fuels, it appears the Queensland government is poised to ramp up its subsidies for the humungous Galilee Basin coal project.

Read more: http://www.smh.com.au/business/mining-and-resources/wise-investment-or-fossil-fools-queensland-backs-coal-as-g20-moves-the-game-on-20141117-11odkq.html#ixzz3JM8yeHsw

Categories: Economic policy Tags:

Monday Message Board

November 18th, 2014 127 comments

It’s time for another Monday Message Board. Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please.

Categories: Regular Features Tags:

A policy lesson from G20

November 14th, 2014 47 comments

After spending months warning us of terrorists, rioters, and (most fearsome of all) thousands of political minders roaming the streets of the Brisbane CBD, warning us to reconsider our need to travel and giving us a long weekend, Brisbane Lord Mayor Graham Quirk is upset with us for taking off to the beach or staying home and waiting the whole thing out. He has been roundly mocked. It’s now clear enough that, except for high-end hotels and restaurants, G20 is going to be an economic disaster for Brisbane.

There is a broader lesson here. Paying substantial amounts to attract an event where the audience is mostly going to regard the venue as interchangeable with lots of others (car races being a prime example) is almost never going to be a sensible economic policy. The inflow of event visitors will mostly be offset by the deterrence of other potential visitors and by an exodus of locals. And the idea that events like this “put Brisbane on the map” is silly.

We won’t be lining up for another international summit any time soon, but the Commonwealth Games will be in the Gold Coast in 2018. I’m confident that an analysis after the fact will reveal very little to show for the $2 billion we are spending on them.

I’ll qualify the above by saying that it’s a different story with mass participation events. Noosa Triathlon for example, attracted 14 000 participants and 50 000 spectators (mostly family members, I think). The local tourism council tipped in $250k. Assuming a similar amount from Tourism Queensland, that’s a subsidy of $10/head. The event could probably have gone ahead without any subsidy: the main contribution for this kind of event is organizing road closures and crowd safety.

Categories: Economics - General, Sport Tags:

Planet saved … in Brisbane!

November 12th, 2014 104 comments

It’s hard to overstate the significance of the agreement announced today by Barack Obama and Xi Jinping to limit US and Chinese greenhouse gas emissions. The limits are significant in themselves: not enough to guarantee stabilization of greenhouse gas levels at the agreed target of 450 ppm, but enough that we can get there just by ratcheting up an existing agreement rather than by looking for something new.

I’ll write more later, but I wanted to note this event as soon as I could

Categories: Environment Tags:

Remembrance Day

November 11th, 2014 59 comments

Every year on this day, I post on the futility of war, arguing that wars and armed revolutions are almost never justified. I haven’t convinced anyone, and there are probably more wars, frozen conflicts and insurgencies now than there were when I started blogging.

And I realise I haven’t even convinced myself. Intellectually, I know that wars will always turn out badly, but still when a new conflict erupts, I find myself picking sides and cheering for the good (less bad) guys.

Why do we fall for the spurious appeal of a simple, violent solution to complex and intractable problems? And why is it so hard to end a war once it has started? I have some half-formed ideas, but I’ll leave it to others to discuss.

In the meantime, Lest we Forget.

Categories: Life in General Tags:

Monday Message Board

November 3rd, 2014 151 comments

It’s time for another Monday Message Board. Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please.

Categories: Regular Features Tags:

Brands of nonsense

October 31st, 2014 56 comments

That’s the title of a piece of mine the Chronicle of Higher Education ran a little while ago. It’s paywalled but they have graciously given me permission to republish it here.

Read more…

Categories: Life in General Tags:

Eyes of the world on Brisbane (G20), Department of the Absurd

October 29th, 2014 49 comments

Channel 9 News yesterday had a story about how the massive worldwide TV audience for G20 news coverage will discover that

* Brisbane has graffiti
* Roma St Transit Centre is ugly.

In reality of course, they will discover that we have a Convention Centre and hotels, providing backdrops for political leaders to pontificate about nothing much.

Categories: Life in General Tags:

Wouldn’t know if their a**e was on fire

October 28th, 2014 156 comments

As I type this, it’s currently 35 degrees, at 9am on an October morning in Brisbane. And, while one day’s temperatures don’t prove anything, a string of studies have shown that the increasingly frequent heatwaves in Australia can be reliably attributed to global warming. We haven’t had an El Nino yet, but according to NOAA, the last 12 months have been the hottest such period on record.

It will be interesting to see what the denialists come up with in response to this combination of record breaking local and global warming. We can safely rule out anything along the lines of “as a sceptic, I like to wait for convincing evidence before accepting a new hypothesis. But, with the steady accumulation of evidence I’m now convinced”. I suspect we’ll get more along the lines of

* Graham Lloyd, reporting a new study by Jennifer Marohasy, showing that the communists at the Met Bureau are artificially pumping hot air through Australian cities to cover up the fact that they rigged the data to show exactly this warming

* The Telegraph, with a front-page story of an old codger saying something like “You think this is hot? Back in ’23, we had heat waves in July so bad that concrete footpaths melted”

* Andrew Bolt will readjust the start dates so he can continue to claim “no significant warming for the past x years”, omitting the crucial word “statistically”

Categories: Environment Tags:

Monday Message Board

October 27th, 2014 18 comments

It’s time for another Monday Message Board. Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please.

Categories: Regular Features Tags:

Three things the US has (just about) seen the last of [Crooked Timber Crosspost]

October 27th, 2014 121 comments

Here’s an assorted list of things that once seemed archetypally American, but have pretty much reached the end of the line. More precisely, there are no new ones, or hardly any, and the existing examples look increasingly down at heel

    Shopping malls
    Nuclear power stations
    Republican intellectuals

Feel free to discuss, deny, add to the list and so on.

Categories: Life in General Tags:

Sandpit

October 26th, 2014 45 comments

A new sandpit for long side discussions, idees fixes and so on.

Categories: Regular Features Tags:

The G20: A bonanza for tourism?

October 24th, 2014 26 comments

I was contacted by a journalism student here who would some commentary on the rosy projections being made about how the G20 meetings will put Brisbane on the world tourism map, assisted by such initiatives as a month of cultural celebrations (beginning tomorrow) along with “Team Brisbane” and “Global Cafe”. I offered the following response

G20 will provide a short-lived but substantial boost in demand for accommodation and restaurant services in the Brisbane CBD, associated with the arrival of thousands of delegates and media representatives. This will be offset by a negative effect on all other kinds of tourism, not only because of the difficulty of obtaining accommodation but because of the lockdown and other security measures associated with the event, and perhaps with fears of terrorism.

Longer-term effects on tourism, economic growth, and so on will be negligible. International news coverage of G20 will focus on staged events in the CBD, such as media conferences, held in settings indistinguishable from those of any other CBD. Viewers will scarcely be aware that the event is being held in Brisbane, let alone that there are associated cultural celebrations or that Brisbane is a desirable place to visit. A Google search on “G20 cultural celebrations” reveals zero coverage outside (greater) Brisbane, even though the event is starting today.

As regards “Team Brisbane” and “Global Cafe”, I was entirely unaware of these marketing efforts. I suspect that I am typical of the world’s population in this respect.

Categories: Economic policy Tags:

Gough Whitlam

October 23rd, 2014 62 comments

More than any other Australian political leader, and arguably more than any other political figure, Gough Whitlam embodied social democracy in its ascendancy after World War II, its high water mark around 1970 and its defeat by what became known as neoliberalism in the wake of the crises of the 1970s.

Whitlam entered Parliament in 1952, having served in the Royal Australian Air Force during the War, and following a brief but distinguished legal career. Although Labor had already chosen a distinguished lawyer (HV Evatt) as leader, Whitlam’s middle-class professional background was unusual for Labor politicans

Whitlam marked a clear break with the older generation of Labor politicians in many otherrespects. He was largely indifferent to the party’s socialist objective (regarding the failure of the Chifley governments bank nationalisation referendum as having put the issue off the agenda) and actively hostile to the White Australia policy and protectionism, issues with which Labor had long been associated.

On the other hand, he was keen to expand the provision of public services like health and education, complete the welfare state for which previous Labor governments had laid the foundations, and make Australia a fully independent nation rather than being, in Robert Menzies words ‘British to the bootstraps’.

Coupled with this was a desire to expand Labor’s support base beyond the industrial working class and into the expanding middle class. The political necessity of this was undeniable, though it was nonetheless often denied. In 1945, the largest single occupational group in Australia (and an archetypal group of Labor supporters) were railwaymen (there were almost no women in the industry). By the 1970s, the largest occupational group, also becoming the archetypal group of Labor supporters. were schoolteachers.

Whitlam’s political career essentially coincided with the long boom after World War II, and his political outlook was shaped by that boom. The underlying assumption was that the tools of Keynesian fiscal policy and modern central banking were sufficient to stabilize the economy. Meanwhile technological innovation, largely driven by publicly funded research would continue to drive economic growth, while allowing for steadily increasing leisure time and greater individual freedom. The mixed economy would allow a substantial, though gradually declining, role for private business, but would not be dominated by the concerns of business.

The central institution of the postwar long boom, the Bretton Woods system of fixed exchange rates, was already on the verge of collapse by the time Whitlam took office in 1972. The proximate cause of its collapse was the inflationary surge that had begun in the late 1960s and reached its peak with the oil price shock of 1973.

So, Whitlam was living on borrowed time from the moment he took office. His ‘crash through or crash’ approach ensured that he achieved more in his first short term of office (eighteen months before being forced to an election by the Senate) than most governments did in a decade. The achievements continued in the government’s second term, but they were overshadowed by retreats and by a collapse into chaos, symbolized by the ‘Loans Affair’ an attempt to circumvent restrictions on foreign borrowing through the use of dodgy Middle Eastern intermediaries.


The dramatic constitutional crisis of November 1975, and the electoral disaster that followed, have overshadowed the fact that, given the economic circumstances, the government was doomed regardless of its performance. The Kirk-Rowling Labour government in New Zealand, also elected in 1972 after a long period of opposition, experienced no particular scandals or avoidable chaos, but suffered a similarly crushing electoral defeat.

Despite his defeat, and repudiation by succeeding leaders of the ALP (and of course his conservative opponents), it is striking to observe how much of Whitlam’s legacy remains intact. Among the obvious examples (not all completed by his government, and some started before 1972, but all driven by him to a large extent)

* Aboriginal land rights
* Equal pay for women
* Multiculturalism
* Greatly increased Commonwealth spending on school education
* Medibank (now Medicare)
* The end of colonial ties to Britain
* Welfare benefits for single parents
* Extension of sewerage to Western Sydney
* Reduction of the voting age to 18
* No fault divorce

In all of this Whitlam is emblematic of the social democratic era of the mid-20th century. Despite the resurgence of financialised capitalism, which now saturates the thinking of all mainstream political parties, the achievements of social democracy remain central to our way of life, and politicians who attack those achievements risk disaster even now.

With the failure of the global financial system now evident to all, social democratic parties have found themselves largely unable to respond. We need a renewed movement for a fairer society and a more functional economy. We can only hope for a new Whitlam to lead that movement.

Categories: Oz Politics Tags:

Gough Whitlam open thread

October 22nd, 2014 118 comments

I’m hoping ot write an appreciation of Gough Whitlam’s contributions to Australian society soon. But in the meantime, I’ll open this thread for general discussion. I’m happy to entertain discussion of failures as well as successes, but I don’t welcome personal attacks on the recently departed in general, and certainly not in Gough’s case, so please keep discussion respectful.

Categories: Regular Features Tags:

Time to terminate Cormann

October 19th, 2014 98 comments

The flap about Mathias Cormann’s Schwarzeneggerian description of Bill Shorten as a “girlie man” isn’t too significant in itself. But in the context of other developments, it suggests a couple of patterns that represent big problems for the Abbott government.

First, Cormann has joined Joe Hockey and Arthur Sinodinos in making an idiot of himself. There’s now no-one among the key economic ministers who has any real credibility left. Add to that the hopelessness of the key spending ministers (Andrews, Dutton and Pyne) and it becomes clear that the Budget fiasco was, as they say, no accident.

At this point, it’s hard to see how the government can turn the economic debate around, even given a radical reshuffle of the existing team. Their best hope is probably that attention will remain focused on foreign policy.

Second, coming on the heels of a string of similarly disastrous statements from prominent rightwing figures (Barry Spurr, Alan Moran, Aaron Lane) it’s a pretty clear indication of how the Australian right talks when they think no one is listening, or forget that they are on record, and how far out of touch they are with today’s social mores.

Essentially, they are living in a bubble where they imagine that media figures like Andrew Bolt, Miranda Devine and Alan Jones represent the views of the majority of right-thinking people. In reality (most obviously in the case of Jones, but equally true of Bolt and Devine) these are people who make a good living by taking the views of the most bigoted 10 per cent or so of the Australian population (AFAICT, Australia is no better or worse than most other countries in terms of the prevalence of bigotry), and reflecting them back to the same audience in a more-or-less coherent form.

Except in rare and much resented cases like libelling people on account of their race, the Bolts and Devines are protected by the rules of free speech and the fact that they serve the interests of the Murdoch press. But that’s not true for politicians, thinktankers or participants in public inquiries. In these venues, as I know from my own experience, anything you say can and will be used against you. Unfortunately, for the Australian right, the racist, sexist and generally nasty stuff that goes down a treat at Young Liberal meetings and similar can no longer be laughed off when it gets out in public.

Categories: Oz Politics Tags:

BBC News Hour

October 16th, 2014 58 comments

My piece on the incoherence of US and Australian policy in the Middle East, suggesting that we should leave the people of the region to sort out their own problems, attracted a fair bit of interest, including a discussion on the BBC. You can listen to it here (about 31:55) for the next few days. I’ll try to replace this with a permanent podcast link.

Categories: World Events Tags:

Independents to block asset sales in Qld

October 16th, 2014 9 comments

The ABC reports that eight independent and minor party MPs in the Queensland Parliament have agreed to vote against the government’s asset sales plan (spuriously called a lease). This has several implications

* Most obviously, if neither major party wins a majority at the next election, the asset sales won’t go ahead
* Since most voters don’t like asset sales, this increases the likelihood of existing independents holding their seats and perhaps of others winning seats, so that a minority government becomes more likely
* Polling isn’t very helpful here, since the “two-party preferred” measure isn’t relevant in these circumstances, and the sample size is too small too tell us about which seats will go which way
* In the event of neither party winning a majority, the chance of a Labor minority government is enhanced by the fact that asset sales will be a key issue
* Everything is further complicated by the fact that, if the LNP lose their majority, Campbell Newman will almost certainly lose his seat in the process

I don’t bet on elections any more after I couldn’t collect my winnings from Intrade (long story), but a bet on Annastacia Palaszczuk as the next premier looks a lot more promising than it did yesterday (of course, there’s always the truly bizarre possibility that some other Labor MP could challenge here – they need to rule it this kind of nonsense ASAP)

Categories: Oz Politics Tags:

Legal reasoning (crosspost from Crooked Timber)

October 15th, 2014 28 comments

Not surprisingly, the US Supreme Court’s non-decision on equal marriage has caused plenty of debate, including John Holbo’s smackdown of NR’s Matthew Franck.

The discussion got me thinking about the broader problem of legal reasoning, at least in its originalist and textualist forms, and also in precedent-based applications of common law. The assumption in all of these approaches is that by examining (according to some system of rules) what was legislated or decided in the past, lawyers and judges can determine the law as it applies to the case at hand. There are all sorts of well-known difficulties here, such as how words written a century ago should apply to technologies and social structures that did not exist at the time. And it often happens that these approaches produce results that seem unacceptable to most people but for which a legislative or constitutional fix is impossible for some reason.

It’s always seemed to me, though, that there is a much bigger problem with this approach, namely the implicit assumption that “the law” actually exists. That is, it is assumed that, if the appropriate procedure is used to interpret the inherited text, and applied to the problem at hand, it will produce a determinate answer. But why should this be true? The same law might contain contradictory clauses, supported by contradictory arguments, voted in by different majorities, and understood at the time of its passage in contradictory ways. Most notably, the same constitution might grant universal freedoms in one place, while recognising slavery in another.

At a minimum, such contradictions mean that there is no determinate law on the particular points of difference. But the problem is worse than this. The law rarely prescribes an exact answer in a specific case. The standard view of legal reasoning is the principles can be extracted from case law, then applied to new cases. But contradictory laws and contradictory cases produce contradictory principles. The ultimate stopping point is the paradox of entailment: a contradiction implies anything and everything.

I don’t have a fully worked out answer to this problem but I think it underlies a lot of the disquiet so many people feel about legal reasoning (apart from the ordinary disappointment when the answer it produces isn’t the one we want).

r > g

October 15th, 2014 26 comments

A standard piece of advice to researchers in math-oriented fields aiming to publish a popular book is that every equation reduces the readership by a factor of x (x can range from 2 to 10, depending on who is giving the advice). Thomas Piketty’s Capital has only one equation (or more precisely, inequality), at least only one that anyone notices, but it’s a very important one. Piketty claims that the share of capital owners in national income will tend to rise when the rate of interest r exceeds the rate of growth g. He suggests that this is the normal state, and that the situation prevailing for much of the 20th century, when r was less than g, was an aberration.

I’ve seen lots of discussion of this, much of it confused and/or confusing. So, I want to offer a very simple explanation of Piketty’s point. I’m aware that this may seem glaringly obvious to some readers, and remain opaque to others, but I hope there is a group in between who will benefit.

Suppose that you are a debtor, facing an interest rate r, and that your income grows at a rate g. Initially, think about the case when r=g. For concreteness, suppose you initially owe $400, your annual income is $100 and r=g is 5 per cent. So, your debt to income ratio is 4. Now suppose that your consumption expenditure (that is, expenditure excluding interest and principal repayments) is exactly equal to your income, so you don’t repay any principal and the debt compounds. Then, at the end of the year, you owe $420 (the initial debt + interest) and your income has risen to $105. The debt/income ratio is still 4. It’s easy to see that this will work regardless of the numerical values, provided r=g. To sum it up in words: when the growth rate and the interest rate are equal, and income equals consumption expenditure, the ratio of debt to income will remain stable.

On the other hand, if r>g, the ratio of debt to income can only be kept stable if you consume less than you earn. And conversely if r < g (for example in a situation of unanticipated inflation or booming growth), the debt-income ratio falls automatically provided you don’t consume in excess of your income.

Now think of an economy divided into two groups: capital owners and everyone else (both wage-earners and governments). The debt owed by everyone else is the wealth of the capital owners. If r>g, and if capital owners provide the net savings to allow everyone else to balance income and consumption, then the ratio of the capital stock to (non-capital) income must rise. My reading of Piketty is that, as we shift from the C20 situation of r <= g to one in which r>g the ratio of capital to stock to non-capital income is likely to rise form 4 (the value that used to be considered as one of the constants of 20th century economics) to 6 (the value he estimates for the 19th century)

This in turn means that the ratio of capital income to non-capital income must rise, both because the capital stock is getting bigger in relative terms and because the rate of return, r, has increased as we move from r=g to r>g. For example if the capital-income ratio goes from 4 to 6 and r goes from 2 to 5, then capital incomes goes from 8 per cent of non-capital income to 30 per cent[^1]. This can only stop if the stock of physical capital becomes so large as to bring r and g back into line (there’s a big dispute about whether and how this will happen, which I’ll leave for another time), or if non-capital owners begin to consume below their income.

There’s a lot more to Piketty than this, and a lot more to argue about, but I hope this is helpful to at least some readers.

[^1]: Around 20 per cent of GDP is depreciation, indirect taxes and other things that don’t figure in a labor-capital split, so this translates into a fall in the labor share of all income from a bit over 70 per cent to around 50 per cent, which looks like happening.

Categories: Economics - General Tags:

A simple route to climate disaster

October 12th, 2014 251 comments

I’ve mentioned quite a few times the spurious calculations offered by Ted Trainer of the Simplicity Institute, purporting to prove that renewable energy can’t sustain a modern lifestyle. But I haven’t looked hard at the other side of the coin; the idea that ‘degrowth’ could provide us with a sustainable, low-tech but still comfortable way of living, based on local self-sufficiency.

Samuel Alexander, also of the Simplicity Institute, has a piece in the Conversation, making this claim. Presumably, unlike energy technology, this is an area where the Institute ought to have some special expertise. Sadly, this does not appear to be the case.
Read more…

Categories: Environment Tags:

Rabbitohs and memory

October 11th, 2014 52 comments

In the course of a recent minor tiff on Twitter, accused of bandwagon jumping, I asserted that I had not only supported the Rabbitohs since (just) before their last premiership, but that I was old enough to remember actual rabbitohs, that is, itinerant sellers of rabbit meat. Now I’m wondering whether I’m conflating rabbit as an occasional treat with bottle-ohs, early recyclers who, as the name implies, went door to door collecting bottles. I can definitely remember a bottle-oh with a horse-drawn cart (this would have been around 1960 in Adelaide).

Any other readers of a certain age want to weigh in?

Also, is there a word for Twittertiffs?

Categories: Life in General Tags:

Black Swans, Financial Crises and more

October 10th, 2014 19 comments

I’ve spent the last couple of days in Sydney at a conference organized by the Paul Woolley Centre for the Study of Capital Market Dysfunctionality. It’s striking that this is the only research group of which I’m aware that takes dysfunctionality, rather than the Efficient Markets Hypothesis as a starting point.

Various people have asked me about the paper and slides, so I’m putting them up for download.

Black Swans and Financial Regulation (presentation

Unawareness and financial innovation presentation and paper)

Categories: Economic policy Tags:

Give to MS research, or asylum seekers

October 10th, 2014 1 comment

I have about a week to go before my MS Swimathon, and haven’t yet heard the voice of the public on whether I should go the full Tony in my post-event photo. I’m going to set the default to “No”, and require five Yes votes, accompanied by $20 (or more) donations to change that.

If you’d rather give to an activist cause, I’ve been asked to advertise Esther Gyorki’s half-marathon run supporting the Asylum Seeker Resource Centre.

Categories: Life in General Tags:

Pyne on the American model

October 8th, 2014 16 comments

I appeared yesterday before the Senate Committee inquiring into the government’s proposed higher education reforms. I focused on criticism of the US model being advocated by the government and the Go8, and was ready with quotes from the Go8 submission. I was unprepared, however, for the line of questioning I got from LNP members of the Committee, who denied that the government, as distinct from the Go8, was pushing the US model. My iPhone wasn’t up to the job of producing a definitive statement on the spot, but I have now located the source I wanted, in which Pyne, speaking to the Policy Exchange group in the UK says (emphasis added)

We have much to learn about universities competing for students and focussing on our students. Not least, we have much to learn about this from our friends in the United States. They have developed a diverse array of institutions encouraging prospective students to pick and choose their futures and where they are going to study, immerse themselves in enriching extra-curricular activities, and make life-long friends. Students routinely chase a range of options as to where they study, whether that’s at home or in a place known as college. Going to college is a rite of passage for American high school graduates. And it is a gift that keeps on giving.

The competitive nature of American tertiary education breeds the sort of focus on competition for students that Glyn Davis referred to. It breeds loyalty and devotion to one’s alma mater – and we know that American colleges leave us for dead when it comes to attracting philanthropic support from their graduates.

Another Australian Vice Chancellor, Professor Warren Bebbington of the University of Adelaide, wrote last week in The Times Higher Education supplement, and I quote:

higher education in Australia could be transformed into the most dynamic system in the world. It (could) have the rich variety of the US university landscape but without the crippling debts that American students suffer.
This should be the focus of a fundamental community-wide debate.

He opined that:

the debate has been largely contained thus far, and has taken place in terms incomprehensible to the average person. Even worse, some of the most influential academic voices seem intent on preventing Australians ever benefitting from what is proposed.

In the US, nearly half of all students do not go from high school to a public university of the Australian type, but instead attend teaching-only undergraduate colleges offering only Bachelor degrees. Without research programmes, these colleges do a first-class job of teaching: through small classes and an intense extra-curricular programme. Students have an unforgettable, utterly life-changing educational experience.

He continued that:

this huge array of highly-individual undergraduate colleges is one of the glories of American higher education.

Such colleges do not exist in Australia. Ours has been a highly constrained system of universities with limited scope for universities to shape their own offerings to students.

As I’ve previously pointed out, Bebbington’s claim is ludicrously wrong. He’s describing liberals arts colleges that educate perhaps 2 per cent of the college-age cohort in the US, charge around $50 000 per year and have endowments of the order of $1 million per student. The second-tier state universities, community colleges and for-profits actually attended by half or more of the student population are nothing like this.

Clearly, Pyne (like the Go8) doesn’t have a clue about the model he is pushing. This whole package should be scrapped: If the government wants to make changes, it should do some research first.

Categories: Economics - General Tags:

Yesterday’s enemies, today’s allies … and tomorrow ?

October 7th, 2014 39 comments

When a militarily powerful country tries to govern the affairs of millions of people on the other side of the planet, we shouldn’t be surprised that chaos results …

That’s of the grab from my latest piece in Inside Story, commenting on the utter incoherence of US (and therefore Australian) policy in the Middle East. An extended version:

How could it be otherwise? A rich and militarily powerful country has taken it upon itself to govern the affairs of millions of people on the other side of the planet, of whom it knows nothing. Its emissaries routinely elevate particular individuals, ethnic groups, religious sects and political parties as favourites, then just as quickly dump them in favour of new friends. Its tools vary randomly from overwhelming force to plaintive exhortation, with no clear or consistent rationale.

The key observation is that, with the exception of slavish obedience to the whims of the Netanyahu government, the US has switched sides on almost every conflict in the Middle East in the space of a couple of years.

My policy recommendation to the US is

an announcement that, from now on, the people of the Middle East would be left to sort out their problems for themselves. In particular, it would be useful to state that the United States has no strategic concern with Middle Eastern oil, and that energy policy is a matter for individual countries to determine according to their own priorities.

Inside Story doesn’t appear to take comments so read there (lots of other interesting stuff) and comment here.

Categories: World Events Tags:

Sandpit

October 6th, 2014 41 comments

A new sandpit for long side discussions, idees fixes and so on.

Categories: Regular Features Tags:

Monday Message Board

October 6th, 2014 34 comments

It’s time for another Monday Message Board. Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please.

Categories: Regular Features Tags: