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After reform:the economic policy agenda in the 21st century

September 28th, 2016 41 comments

That’s the title of the FH Gruen lecture I’ll be presenting at ANU on Tuesday 4 October.

I’ll be talking first about the end of the era of reform that began in the early 1980s, and then about the information economy and a policy agenda for the 21st century.
Read more…

Categories: Economics - General Tags:

Wise in hindsight

September 23rd, 2016 50 comments

My article on the failure of for-profit competition in human services included a hook to the recently published Productivity Commission report recommending more of the same. I haven’t had time to go through the report in detail, but I was struck by reports that the PC mentioned the FEE-HELP fiasco in the VET sector as an example of the way not to go about things.

It’s good to see some recognition of this but what matters here is foresight, not hindsight. So, I thought I’d check back to see what the PC was saying a couple of years ago, when the disaster was obvious, but was still being denied by those in charge of it. Here’s a quote from their submission to the Harper Competition review

The Commission’s study into the vocational education and training (VET) workforce (2011f) found that there had been a rising trend to harness market forces in the allocation of VET services, with principles such as user pays and user choice increasingly underpinning VET policy. The Commission suggested that, as the VET sector becomes increasingly competitive, a move towards greater managerial independence for public providers would give them the autonomy and flexibility they need to respond.
The Commission (2011f) also noted that opening up of the VET sector had not been a complete success, with some stakeholders raising concerns about quality assurance, monitoring and enforcement (especially in the international student sector).

Going back to the 2011 report, there is indeed a box referring to problems with international students, which drew a lot of attention at the time. But there’s nothing to suggest any awareness of the broader problems, which were already apparent*, let alone any capacity to predict them using the PC’s analytical framework.

* I wrote a report for the National Council on Vocational Education Research in 2012, making many of these points, and drawing on several years of evidence from Victoria. I was roundly derided for my pains by the private provider lobby.

Categories: Economic policy Tags:

Worse than the Bourbons

September 23rd, 2016 35 comments

I have a couple of pieces in The Guardian. The first, which came out a few days ago, points out the consistent failure of market competition and for-profit firms to deliver human services effectively and equitably. The second gives the mainstream economic analysis of the problem, in terms of market failure and the mixed economy, developed 40 to 50 years ago, and ignored by the policy class of today, which takes the assumptions of market liberalism (aka neoliberalism) for granted. My summary:

The problem is that the political class, along with much of the economics profession, have done worse than the Bourbons, of whom Talleyrand observed “they have learned nothing, and forgotten nothing”. … Our leaders, and the economists who advise them, have not only shown themselves incapable of learning from experience, they have forgotten much that we once knew.

Categories: Economic policy Tags:

Brexit and bigotry (crosspost from CT)

September 23rd, 2016 63 comments

Following my previous post, I’d like to add a bit more to the debate about Brexit and migration. On this issue, a common defence of the Leave campaign is that the central concern was about the need to cut the number of migrants to the UK so as to reduce competition for jobs. The plausibility of this defence has been undercut by recent negotiations, widely reported in the Australian press, but largely ignored by British media.
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Categories: World Events Tags:

New Zealand’s zombie miracle

September 21st, 2016 39 comments

Twice in the last couple of days, I’ve bumped into the seemingly unkillable zombie idea that the New Zealand economy is doing well and ought to be a model for Australia. Checking Wikipedia to make sure I hadn’t missed anything, I found that, as of 2015, NZ income per person was 30-35 per cent below that in Australia, as it has been ever since the miraculous reforms of the 1980s and 1990s. NZ is down with Italy and Spain on most rankings, while Australia is comparable to Germany (above on some rankings, below on others).

This wasn’t always the case. Before the reform era, New Zealand and Australia had almost identical income levels, among the richest in the world. NZ took a bigger hit from British entry into the EU in the early 1970s but after 50 years, that can scarcely serve as an excuse (and of course, no one is predicted that Brexit will be a gigantic benefit to NZ; rather the reverse)

Then there’s migration. I dealt with this here, but I’ll repost crucial points over the fold.

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Last chance on climate change policy

September 19th, 2016 68 comments

With August 2016 setting yet another record for global temperatures, the need for action on climate change is obvious. The good news is that most national governments are finally recognising the urgency of the problem. The bad news is that Australia is not among them. Having commissioned a Special Review from the Climate Change Authority (of which I’m a member) and received recommendations designed with the current policy as a starting point, the government’s response has been that it might take another look at the problem in 2017.

I’ve written the statement over the fold in response. Comments very welcome. I won’t engage in discussion; in this context, I’d rather let the statement speak for itself.

Read more…

Categories: Environment Tags:

Monday Message Board

September 19th, 2016 13 comments

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:

Recognising racism (crosspost from Crooked Timber)

September 14th, 2016 93 comments

Back in 2004, I wrote that

There is only one real instance of political correctness in Australia today and that is that you are never, ever allowed to call anyone a racist.

This was one side of an unspoken agreement among mainstream politicians, the other being that no one would ever make a statement that was overtly and undeniably racist (this was the central content of “political correctness” in its normal usage). Both the use of overtly racist language and the use of the term “racist” in political debate put the speaker outside the Overton Window. The official debate was undertaken in terms of “dog whistle” coded appeals to racism on one side and euphemisms such as “prejudiced” or “racially charged” on the other. The peace was maintained by the fact that the political class as a whole shared a broad neoliberal[^1] consensus in which marginal differences over economic issues were central, and where social/racial issues were primarily seen as a way of motivating the base to vote the right way.

With the rapid rise of tribalism on the political right this tacit agreement is breaking down.
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Categories: Oz Politics Tags:

Edison in reverse

September 13th, 2016 53 comments

The takeaway from my latest piece in The Guardian on the failure of for-profit provision of services like health and Education

Blair, and like-minded reformers throughout the English-speaking world, have delivered an Edison in reverse. Edison experimented with many things that didn’t work, but ended up with a light bulb. Market-oriented reforms, particularly in the provision of human services like health, education and public safety, have begun with a working system and replaced it with a string of failed experiments.

Categories: Economic policy Tags:

Sandpit

September 12th, 2016 125 comments

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

Categories: Economics - General Tags:

Monday Message Board

September 12th, 2016 36 comments

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:

No iceberg, no tip

September 10th, 2016 31 comments

When Dyson Heydon delivered the report of the Royal Commmissioner into Royal Commission into Trade Union Governance and Corruption, he claimed that his findings represented “the tip of the iceberg”. At the time, I commented that, given nearly $50 million of public money and lengthy hearings with the exceptional powers of a Royal Commission, the Australian public was entitled to expect the whole iceberg.

It turns out that I was too charitable. In the months since the Commission reported, a string of the charges he recommended have been thrown out or withdrawn In fact, six months later, there has only been one conviction, resulting in a suspended sentence. The only big fish to be caught since the establishment of Heydon’s star chamber has been the Commission’s own star witness, Kathy Jackson.

And the bills keep coming in. The last budget allocated $6 million more for the AFP-Victorian Police taskforce, which currently has outstanding cases against a grand total of six unionists. By contrast, taskforce Argo in Queensland, focused on child exploitation, has a budget of $3 million.

For another contrast, here are a few of the cases of alleged wage fraud, misappropriation of worker entitlements and so on that have emerged since Heydon’s Commission was launched: 7-11 ( million underpayment), Queensland Nickel, Pizza Hut, Myers and Spotless, and lots of small employers in the agricultural sector. That’s on top of the general run of sharp practive, environmental vandalism, market rigging, and dubious practices of all kinds.

It would be absurd to deny the existence of corrupt union officials and, though it is much rarer, systemic corruption, as in the case of the Health Services Union. But the continued failure of a massively expensive, politically motivated inquisition to turn up more than a handful of cases suggests that the problems are isolated, and that the real drive is to attack unions for doing the job of representing workers.

Categories: Oz Politics Tags:

Human services for profit: the evidence is in

September 7th, 2016 91 comments

Over at Club Troppo, Nicholas Gruen has a thoughtful piece on the role of competition and choice in human services. He’s responding to the less-than-thoughtful boosterism of the Productivity Commission and the Harper Review on this topic. It’s well worth reading. Before doing so, though it’s important to take a look at the mounting evidence that for-profit provision of human services is almost invariably disastrous.

I’ll write a longer piece on this soon, I hope. But here are three recent examples from the United States, which has led the way in for-profit human services, and is now beginning to pull back

Shonky for-profit educator ITT closes down without notice, right at the beginning of a new semester.

Following a damning report, the US Department of Justice announces it will no longer use private prisons.

Charter schools (some openly for-profit, many others run as businesses) have been failing at a starting rate.

Categories: Economics - General Tags:

Monday Message Board

September 5th, 2016 41 comments

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:

Abbott and Hanson reconcile

September 2nd, 2016 42 comments

Just as there are no permanent allies in politics, there are few if any permanent enmities, just permanent interests. The recent reconciliation between Tony Abbott and Pauline Hanson is a neat illustration of this. A decade or so ago, Abbott was the driving force behind the prosecution that saw Hanson imprisoned (wrongly, as I wrote at the time) for breaches of electoral laws. Now he is courting her support, coyly mentioning how useful it might be to a future government with an unspecified new leader.

What’s of more interest is Abbott’s observation that half a million people voted for Hanson and that “she would be a strong voice for their concerns”. (Turnbull has said something similar, though not quite as strong). The implication, presumably, is that those concerns are legitimate, and that Hanson herself is therefore an appropriate person to make deals with. Of course, we don’t know what motivates any particular voter, but Hanson has stood for racism and bigotry throughout her political career. Anyone who voted for her can be assumed, at the minimum, not to be concerned about opposing racism.

Equally relevantly, how does this square with the government’s attitude to minor parties in general, not to mention the Greens? The Greens got twice as many votes as Hanson, and I’ve never heard anyone from the LNP suggest that those voters should be treated with respect. Similarly with the other minor parties. The whole idea of the double dissolution was to clear out the minor party senators elected in 2013. That didn’t work, and the share of the minor parties rose even further. Far from celebrating this exercise of our democratic right to choose, the LNP and its cheer squad viewed this outcome as a disaster.

The only way to understand this is in terms of an emerging coalition between the LNP and One Nation, within which the Abbott-Hanson faction will drive most decisions, while Turnbull remains as a helpless puppet, holding on only because a government with a one-vote majority can’t afford to change leaders.

Categories: Oz Politics Tags:

The LNP-ONP coalition

August 31st, 2016 52 comments

After the election results came in, I posted about the implications for the Turnbull government of dealing with One Nation as if it were a normal and legitimate political party.

It seems likely, however, that Turnbull is going to treat One Nation, for the first time in Australia, as a normal political party, and to negotiate with Hanson as an equal. That would be a new low for him, and for Australia. And, sooner or later, it will come back to bit him and the LNP. For an object lesson in the dangers of courting racist votes while maintaining a claim to be non-racist, he need only look at the US Republican party,

It is already clear that this analysis fell far short of the mark. Far from being “just another minor party”, One Nation has become a semi-formal member of the LNP Coalition and part of the dominant rightwing grouping within that coalition. The two most striking developments, among many, are
* The decision of the Queensland LNP to preference One Nation ahead of Labor . This is unusual in itself, given that no election is in prospect any time soon and a radical reversal of the pre-election position of putting One Nation last[1]
* The alliance between One Nation and the LNP right to promote a change to hate speech laws, allowing racial speech that “offends” or “insults” the target.
I remain convinced that this will prove a path to disaster for the LNP in the long run, but it could do a great deal of damage to Australia while the LNP-ONP coalition remains in office.

Read more…

Categories: Oz Politics Tags:

After neoliberalism: a snippet

August 30th, 2016 34 comments

Over the fold, some concluding comments from a chapter I’ve written about the rise and decline of neoliberalism. I’m drawing on the “three-party system” analysis I’ve put forward before, in which neoliberalism (in both ‘hard’ and ‘soft’ forms) is increasingly breaking down under pressure from tribalists on the right, and from an amorphous, but still resurgent left.

This is just a snippet, which I hope will evolve into a more extensive discussion of the policies and political strategies the left should adopt in response to the breakdown of the neoliberal order.

Read more…

Categories: Economics - General Tags:

An offer he can’t accept

August 29th, 2016 41 comments

Now that the Greens and Xenophon group have rejected the idea of a plebiscite, the only chance of getting one through is if Bill Shorten agrees. Turnbull obviously hopes to wedge Labor on this, by saying that this is the only way of getting equal marriage through the Parliament, and that there is no way he will allow a free vote on the issue. What should Shorten do?

In my (not original) view, Shorten should announce support for a binding plebiscite beginning with a bound vote of both parties. That is, the Parliament should pass legislation stating that equal marriage will come into effect immediately on receiving majority support in a plebiscite. Labor’s support should be conditional on all Coalition MPs voting for the legislation.

It’s obviously unlikely that Turnbull would accept such an offer or that he could deliver on it if he did. So, the primary effect would be to point up the bogus nature of the proposed plebiscite. But, supposing he did accept, I don’t see that this would be a disaster. There’s no fundamental principle that plebiscites are a bad way of deciding things. And the whole idea of a splecial “free vote” makes it clear that this set of issues has always been regarded as exceptional,

It’s true that the campaign over a plebiscite would be divisive. But this has been a divisive issue ever since Howard ramped it up more than a decade ago. An outright win at a plebiscite might be a good way of silencing the haters.

To repeat, though, there’s almost zero chance of a plebiscite happening on these terms. For Turnbull, it’s an offer he can’t accept.

Categories: Oz Politics Tags:

Sandpit

August 29th, 2016 77 comments

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

Categories: Regular Features Tags:

Monday Message Board

August 29th, 2016 12 comments

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:

Nitpicking on nominal GDP targeting

August 25th, 2016 49 comments

Writing in the AFR, economics correspondent Jacob Greber begins his discussion of the Xenophon proposal with the assessment “What a stupid idea”. Given that he is dismissing proposals with wide support in the economics profession (including economists as different as me and Warwick McKibbin in the Australian context) one would expect that he had a knockdown argument to present. In fact, he offers a valid, but minor nitpick and a string of confusions and errors.

The nitpick relates to the distinction between nominal GDP growth, as reported by ABS, and the way the term is commonly used in the context of monetary policy discussion, to refer to the sum of the inflation rate and the real rate of GDP growth. Inflation is typically measured by the CPI. However, the statistical nominal GDP is associated with a different inflation measure, the GDP deflator, which is heavily influenced by export prices. So, a policy that targeted the statistical measure would imply trying to reduce growth when export prices boomed, and increase growth when they fell. In most times and places, the difference is too trivial to matter, but in the context of the recent minerals boom in Australia, it was substantial. So, I’d suggest we really want to use the phrase “nominal growth targeting” with nominal growth spelt out as the sum of CPI inflation and real GDP growth.

After that valid point, we have a mess of confusions and contradictions. First, Greber objects to Xenophon’s proposal on the basis that it would push up housing prices. If this is to be taken seriously, it means that the RBA should be targeting asset prices as well as CPI inflation. While there’s a good case to be made here (I discussed the issues in a paper with Stephen Bell quite a while back) it contradicts the central claim that everything is fine with inflation rate targeting.

Making the contradictions even worse, Greber notes that inflation has been well below the target range for some time. That is, under an inflation targeting system, the Reserve Bank should be cutting rates. But Greber appears to oppose this, while conceding that “To be fair, there is a legitimate debate to be had about how far and for how long inflation should range outside the current band”. In this context, the question of a shift to nominal growth targeting is a red herring. Real growth (about 2 per cent) is only marginally below the likely long term trend (2.5 per cent), so a monetary policy that targeted both growth and inflation would, if anything, be a little less expansionary than a strict inflation target

The obvious problem being ducked here is that, if the RBA sticks to inflation targeting, it may well have to cut interest rates all the way to zero, as most other central banks have already done. So, the temptation is to accept a long period when we are below the target rate. But that, in effect, is switching from a 2-3 per cent target to a 0-3 target, something for which no real justification has been given.

Like Bernard Keane and Glenn Dyer to whom I responded previously, Greber makes much of Australia’s special circumstances, treating nominal GDP targeting as (to quote Keane and Dyer) as “a foreign solution”. This piece of economic exceptionalism is surprising coming from a haven of orthodoxy like the AFR, and even more surprising in the context of monetary policy. Inflation targeting, central bank contracts and 25-basis point interest rate adjustments aren’t Australian inventions. We adopted this approach at the same time as the rest of the world and for the same reasons. We’ve had much better outcomes as Greber notes, but there’s nothing to suggest that inflation targeting is the main reason.

On the contrary, inflation targeting has evidently failed nearly everywhere in the developed world, in at least three ways
* it has not kept inflation within the target range
* interest rates have been driven to zero or below, so that “emergency measures” like reliance on open market operations now appear to be permanent fixtures
* it has not delivered on the promise that targeting inflation would also deliver stable GDP growth

The first of these problems is already evident in Australia, and the second appears imminent. We should think twice before saying that, since nothing has gone badly wrong so far, we should stick with our existing policy framework.

Greg Jericho in The Guardian has some similar thoughts.

Categories: Economics - General Tags:

Same old, same old on university places

August 24th, 2016 62 comments

Another day, another article complaining that we have too many young people going to university. I’ll pick this one by Nicholas Stuart, not because it’s particularly good or bad, but because it covers all the main points. Then I’ll ask, the following question:

If you substitute the word “Menzies” for “Dawkins”, is there anything in the article that wasn’t being said 50 years ago, when the proportion of young people going to university was about a quarter of what it is now (that’s a guess, which I’ll try to correct when I get time)?

I’m reaching back to my childhood here,so I can’t remember when I first heard these points being raised. But the way in which they were discussed made it clear they were cliches even them. Those points include massification, dropout rates (higher then than now, I think) the large numbers of graduates doing jobs that didn’t require a degree (Arts graduates driving taxis was the standard example back then), the merits of getting a trade instead of a degree, the role of the university as part of the capitalist system and the corrupting effects of Commonwealth money.

Categories: Economic policy Tags:

Living longer

August 23rd, 2016 60 comments

I’ve been invited to give a talk on the topic of challenges posed by an ageing population. This issue has been around ever since I can remember and, in a literal sense, it’s one I am pretty concerned about. Throughout my life I have, like the rest of the population, been aging at a rate of one year per year, and this poses plenty of challenges. On the other hand, as someone said recently, getting older may have its unpleasant aspects but it’s a lot better than the alternative.

Of course, when pundits talk about an ageing population, they do not mean that we are individually getting older but that we are not dying as soon as we used to. The result of this (and subject to demographic fluctuations) is that the average age of the population is increasing.

While I was a little snarky in my opening para, this is, in fact the correct way to think about things. We are, mostly, living longer and this creates a bunch of individual and social opportunities, choices and challenges. The two big ones are:

* How should the extra years of life be allocated between additional education, additional years of work (including household work most notably childraising) and additional years of retirement?

* What are the implications for our personal health and for the health care system.

I’ve looked at the first of these questions on quite a few occasions and concluded that the problems, if any, relate to the way the labour market works (or rather fails to work) for older worker

On the second, the operating assumption in much of the discussion seems to be that people will live longer, but that their health, at any given age, will be much the same as that of previous cohorts. This is obviously nonsensical. The reason the previous cohorts died earlier (on average) is that their health was worse. If people live longer, this will mostly mean more years of healthy life.

One possible exception I’ve been concerned about is dementia caused by Alzheimer’s and related diseases. Perhaps that’s inevitable deterioration rather than a product of ill health. But the news here is good. Age-specific rates of Alzheimers have been declining for the past 25 years as general health improves.

One remaining issue is that people with severe dementia are surviving longer than they used to, as a result of improved care, and this is socially costly. However, this is a once-off shift that has already happened, so the extra cost has been incurred already. Increases in lifespans associated with improvements in general health, including reductions in the age-specific frequency of dementia should not have any additional cost.

This is, in fact, an illustration of a more general point. The increase in health care expenditure we observe is the result of the development of new, and costly treatments. Unsurprisingly people want these treatments and are willing to pay for them, either privately or through the public health system. To regard this as a problem is like complaining about the availability of flat-screen TVs on the basis that buying them will increase our entertainment costs.

Categories: Economics - General Tags:

Abandon inflation targeting while we still have time

August 22nd, 2016 49 comments

Back in 2012, I wrote a piece arguing that Australia should abandon the policy of inflation rate targeting, and switch to one in which the target was the level of nominal GDP. As I argued then, inflation targeting is part of a package deal involving a number of propositions, most particularly
* Macroeconomic management should be left to an independent central bank
* Successful inflation targeting will also stabilize real GDP, and therefore fulfil the dual mandate of price stability and full (or as full as possible) employment
* The best policy approach for central banks involves modest regular adjustments of a key interest rate. In Australia this is the cash rate, which is the overnight money market interest rate.

The idea of nominal income targeting has recently been put forward by .Nick Xenophon and economist Danny Price, in relation to the contract with the new Governor of the Reserve Bank, Phil Lowe. The article mentions my support, and I commented on an earlier draft.

Writing in Crikey, Bernard Keane and Glenn Dyer criticise the idea, making three points
(a) Unlike other countries, we are not yet at the zero lower bound, so we can continue using interest rate policy
(b) Macroeconomic outcomes in Australia have been pretty good under inflation targeting
(c) A nominal GDP target can’t be achieved using monetary policy alone, we need fiscal policy as well.

My response to point (c) is “Yes, that’s the point of the shift. When we dump inflation targeting, we dump the entire package, including exclusive reliance on monetary policy”. On (a) and (b), it seems to me more sensible to make the change when we can, rather than be in the position of most countries, where inflation targeting remains notionally in force, but in practice the only instrument available is open market security purchases (aka quantitative easing). And in all those countries, macro outcomes in the inflation targeting era have ranged from poor to disastrous.

Although Australia is doing well right now, interest rates are heading down, and would certainly hit zero fast in the event of a crisis. So why not fix our policy now, while we still have time.

Categories: Economic policy Tags:

Against Locke, Part 3

August 15th, 2016 45 comments

The third and final instalment of my critique of Locke’s theory of appropriation/expropriation is up at Jacobin. I turn my attention from Locke to Jefferson, Locke’s most important follower, in practice as well as theory. By opening the Louisiana purchase for agricultural settlement, Jefferson put to the test Locke’s theory of appropriation to a practical test. In particular, the vastness of the land, compared with the modest requirements of the ideal Jeffersonian farm family seemed to support Jefferson’s prediction that the new land would be enough to last a thousand generations. But of course the opposite was true: in less than one generation, the United States had overspilled the boundaries of Jefferson’s purchase and was embroiled in a civil war that started with battles over the newly opened land. To restate the conclusion of the previous instalments, Locke’s theory was designed to justify expropriation and enslavement. Neither Locke nor epigones such as Nozick and Rothbard can provide a coherent theory of just appropriation of property.

Categories: Philosophy, Politics (general) Tags:

The relative rationality of Malcolm Roberts

August 11th, 2016 292 comments

Among other interesting results, the recent election gave a Senate seat to One Nation member Malcolm Roberts. Roberts is notable for his expressed belief that global warming is a fraud produced by a global conspiracy of bankers seeking to establish a worldwide government through the United Nations.

Unsurprisingly, Roberts has copped a lot of flak for these statements. But his position seems to me to be more credible than that of the average “sceptic”.
Read more…

Categories: Boneheaded stupidity, Environment Tags:

The failure of privatisation and the case for a fully public TAFE system

August 11th, 2016 26 comments

I have a new article in The Conversation, riffing off ACCC chairman Rod Sims’ recent denunciation of privatisation policy in Australia. The Conversation’s ran with the headline “People have lost faith in privatisation and it’s easy to see why“. To be slightly more precise, when privatisation started in the 1980s, most people had an open mind on the issue – there was plenty of dissatisfaction with public enterprises like Telecom Australia. As they experienced privatisation, they became more hostile and, eventually, implacably so, even as the political class remained convinced of the merits of the idea. The successive defeats of the Bligh (Labor) and Newman (LNP) governments in Queensland illustrate the point. The rare cases when privatising governments have been elected or re-elected usually arise only when the Opposition is utterly unelectable (Baird in NSW for example).

Part of Sims speech and my article referred to the continuing disaster of for-profit vocational education. Right on cue, the day the piece came out, the Victorian government terminated the contracts of another 18 shonky providers (though they are still registered with the national regulator ASQA), with the students being directed to the public TAFE system.

Billions of dollars are being wasted and thousands of lives ruined by this continuing policy disaster. Yet, it seems, no one in authority is willing to admit that the whole idea of publicly funded for-profit education is a disaster, guaranteed to generate scams and rorts on an industrial scale. The whole system needs to be shut down and replaced by a fully public TAFE system. The minority of for-profit providers who are doing a decent job could be hired as subcontractors to teach TAFE courses.

Categories: Economics - General Tags:

Can this census be saved?

August 10th, 2016 71 comments

It appears that, having crashed last night with only about 10 per cent of households having submitted data, the Census website is now off the air indefinitely. It’s hard for me to see how this exercise can be salvaged. Almost certainly, lots of people who tried and failed to fill in their forms last night will be unwilling to do so again, especially in the absence of any coherent explanation for the failure. It’s looking increasingly as if the only option will be to give up and try again in five years time. Coincidentally or not, a ten-yearly census was exactly what the leadership of ABS was suggesting a couple of years ago.

This fiasco seems to have “reform” written all over it, from the new entrepreneurial leadership of ABS to the contracting out of vital functions to the benign/malign neglect displayed by the Abbott-Turnbull government. Peter Martin is very good on this, as is Chris Graham at New Matilda.

Categories: Economics - General Tags:

Sandpit

August 8th, 2016 13 comments

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

Categories: Regular Features Tags:

Monday Message Board

August 8th, 2016 42 comments

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: