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Why do economists support carbon prices?

July 14th, 2011 27 comments

I’ve been a bit slow getting on to this, given the excitement of recent events, but my answer to this question is over the fold

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What can you say?

July 14th, 2011 39 comments

I don’t usually pick on Catallaxy. But I couldn’t resist pointing to this post where Rafe Champion describes Lord Monckton as a “sophisticated commentator”, and the rest of the crew pile in to defend him against the lone commenter pointing out the obvious fact that Monckton is a charlatan, conspiracy theorist, and all around crank. Not by any means the greatest of his follies, but this is someone who claims to be a member of the House of Lords after receiving zero votes(!) in the election for hereditary peers.

Being on the political left hasn’t always been comfortable, but these days I’m really glad I stuck it out. There must be some people remaining on the political right who know how far they have sunk when someone like Monckton can be a leading advocate for their views, but they are all either saying nothing (since speaking up would be politically suicidal), or hypocritically going along with the general applause.

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A soulless Labor vision

June 23rd, 2011 30 comments

My column from the Fin, on the latest call for Labor to abandon everything but the kitchen sink is over the fold.

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The poor have ye always with you

June 17th, 2011 21 comments

There was a time when Labor’s aim for the poor and disadvantaged was to end poverty and disadvantage. Now the best they can hope for is “extending opportunity“. Even equality of opportunity is a step too far it seems.

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Own goals

June 9th, 2011 15 comments

One great thing about soccer, at least for me, is that it is possible, and (by contrast with other sports where this can theoretically occur) relatively common, to score for the other side[1], thereby giving the language the phrase “own goal”. While not an own goal, I certainly had a missed shot with my prediction back in 2007 that the Liberals would never win another federal election. Technically, I’m still in the clear – the prediction that they would merge with the Nats before regaining office was right for the Queensland parties and may turn out correct at the national level – but the underlying analysis posited that Labor would remain politically dominant at both the Federal and State (except NSW) level for years to come. That prediction was derailed by a spectacular series of own goals on the part of the Labor Party, including

* WA Premier Carpenter’s decision to allow ministers to resume contact with Brian Burke
* The NSW government’s suicidal pursuit of electricity privatisation, thereby turning a defeat that was already inevitable (given past own goals) into a rout
* The Bligh government’s similarly suicidal program of asset sales
* Federal Labor’s dumping of the ETS, followed by the dumping of Kevin Rudd

While there is no particular disaster to explain the narrow defeat of the Victorian Labor government, spillovers from the Federal level probably did enough damage to make the difference.

But after only a short period in office, it seems that both the NSW and Victorian Coalition governments are scoring own goals on a regular basis. In Victoria (as at the Federal level) there have been huge blowups over senior ministers missing Parliamentary votes. And NSW Premier Barry O’Farrell, having campaigned as cuddly and unthreatening, made a huge mistake when he tried to retrospectively reduce the feed-in tariff paid to people who had, in good faith, invested in the previous government’s solar PV scheme. He followed that up by ramming through Parliament anti-union legislation that had not been mentioned in the campaign. Given how far Labor’s stocks have sunk, mistakes like this probably won’t be crucial. But a government that manages to mess up what should be its honeymoon period is unlikely to last for long.

For political analysis, the “own goals” phenomenon presents a serious problem. If you want to estimate things like election outcomes you have to work on the basis of things that are more or less predictable, like economic conditions, ideological positions and so forth. Implicitly, this assumes that politicians do the best they can to win, given the objective circumstances. But if political outcomes are driven primarily by unforced errors like those I’ve mentioned, then predictability goes out the window.

fn1. In Australian football, it is, for course, very common to rush the ball through your own goal for a behind, scoring 1 point for the other side, but preventing a goal worth 6 points.

Categories: Oz Politics Tags:

Turnbull for PM

May 19th, 2011 74 comments

There are three people prominent in Australian politics whom I would happily support as Prime Minister[1]. Of these, the one who has the best chance is, I think, Malcolm Turnbull (it shouldn’t be hard for readers to guess the other two). He’s reminded us again what we lost when he was replaced by the lightweight opportunist who now leads the Opposition, against a mirror-image PM. If the Libs would put Turnbull up again, they would get my vote for the first time.

fn1. That reflects a fairly pessimistic view of what progress can be made. A competent government with a decent and consistent policy on climate change is as much as we can hope for at present.

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Weathervanes

May 12th, 2011 18 comments

Tony Abbott, who denounced the government’s very mild pause on indexing the $150k threshold for access to Family Tax Payments as “class warfare”, has previously supported identical attacks on “middle class welfare“. Nothing surprising there: Abbott has shown himself absolutely willing to say whatever he thinks his audience wants to hear on the day. Unfortunately, exactly the same is true of Julia Gillard. Neither seems to think much before committing themselves to whatever thought bubble looks good on the day (cash for clunkers, tax levies for parental leave etc)

By comparison with these two, Wayne Swan and Joe Hockey, among other potential successors, look like stellar intellects and conviction politicians. Kevin Rudd and Malcolm Turnbull are in a whole different universe. As I’ve said before, the current contenders to rule Australia are living disproof of the adage that we get the government we deserve. We didn’t ask for Gillard, and the only alternative we were offered was Abbott. What a choice!

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Wake-up call, part II: revenge of the snooze button?

May 11th, 2011 10 comments

A while ago I wrote a post responding to a Lowy Institute blurb for a new book by Michael Wesley, called There goes the Neighborhood and described as ‘A loud and clear wake-up call to Australians’. In response, I said that ‘At the global level it’s hard to think of a time when we have been less threatened, at least within living memory’, and concluded ‘unless commenters can point to something I’ve missed, I’m going back to sleep’.

Michael Wesley has now responded, and sent me a copy of the book, which I hadn’t read when I responded to the blurb. It turns out that he agrees with me that most of the threats that worried us in the past have dissipated. Also, as I surmised, his main concern is about the way in which the rise of India and China changes our strategic environment. He concludes

In short, we’re entering a world not of threats but of agonising choices that will come at us constantly. My bet is that we’ll look back on the vanished threats that Quiggin talks about with nostalgia for a world that all seemed so simple.

I agree with Wesley that the rise of India and China makes life more complicated in important ways. In the past, our foreign policy consisted, in essence, of the US alliance. That alliance gave us some protection against our local fears, most notably with respect to Indonesia, while also exposing us to some big costs (the need to join faraway wars in which we had no say) and an increased risk of nuclear annihilation, which faded away along with the Cold War, though it hasn’t disappeared.

In the new world, Wesley correctly argues, an uncritical adherence to the US alliance would be a disaster, particularly in the event of a major dispute between the US and China. I agree, and I think most serious foreign policy types already know this. Kevin Rudd’s recent visit to Washington seemed to be devoted, in large measure, to hosing down any expectation that Australia would line up with the US against China in any future dispute (a much more sophisticated line than the updated “All the way with LBJ” line, typically repeated by visiting PMs, up to and including Gillard). Even under the Howard government, generally gung-ho about the US, our diplomats sent the same kind of message from time to time.

Wesley also wants the Australian public to be more engaged and informed, pointing to the deplorable ignorance and anti-Indonesian prejudice surrounding the Schapelle Corby case. Actually, I think this was a good learning experience – most people eventually worked out that, while she cut a sympathetic figure in prison dress, Corby was given a fair trial, (if fact, the Indonesian courts had bent over backwards to give her justice, admitting evidence that would never be allowed in Australia)[1]. Australians are gradually adjusting to the idea of Indonesia as a friendly neighbor rather than a foreign threat. Even so, I think they are well justified in leaving to the experts the kind of diplomacy involved in telling three great powers what they want to hear, while committing ourselves to none of them.

 

fn1. While I’m on this, I’ll welcome the news that the death sentence imposed on Scott Rush has been commuted. This case was a far worse travesty of justice than anything in Corby’s case, but those most to blame were the Australian Federal Police, who sent Rush to possible death in Indonesia, rather than warning him off (as his parents begged them to do) or arresting him on arrival in Australia (which would have reduced their chances of convicting the ringleaders).

Labor’s Conservative Tilt

April 15th, 2011 30 comments

My piece in yesterday’s Fin. The write-off and headline didn’t quite capture the distinction I wanted to make between Gillard (total embrace of neoliberalism) and Swan (Keynesian but not Keynesian enough).

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Phoning it in

April 7th, 2011 54 comments

Not long ago, I noted that Opposition Environment spokesman Greg Hunt was out by a factor of five in his estimate of the effects of a carbon price on the average household’s electricity bill. Now Tim Lambert at Deltoid catches him out by a factor of (at least) 100. And last week Lenore Taylor caught him circulating the latest delusionist talking point (about France dropping a carbon tax) in a press release, hastily correcting it an hour later when he realised that his “news” was a year old.

Three absurd errors in the space of a few weeks is starting to look like a pattern. What gives here? Hunt is one of the less silly members of the Opposition front bench, so I think the only explanation is that he is, as they say in the movie business, “phoning it in”.

If Hunt wants to stay in his job he has to oppose a policy he knows to be the right one, while advocating a nonsensical supposed alternative which exists only because Abbott can’t afford to say he will do (next to) nothing about climate change if he gets in, though of course that’s exactly what will happen.

And those on the Liberal side of politics who are paying any attention to this issue are mostly “sceptics”, that is, credulous fools who’ve already swallowed bucketloads of nonsense from Monckton, Carter, Plimer and others, despite ample and easily accessible refutations from scientists who know what they are talking about[1]. While they would scream blue murder about a misplaced comma in an IPCC document, or an out-of-context phrase lifted from an email, nothing as trivial as an error of a factor of five (or a hundred or a thousand) will worry them as long as it comes from their side of the fight (I was going to write “debate”, but this would imply that there was some element of rational argument).

So, from Hunt’s point of view, he might as well take it easy and churn out whatever nonsense comes to hand. As has been shown by the non-reaction to the absurdities I’ve listed, no one but a few bloggers will care.

fn1. Within this group, I guess I prefer those for whom “sceptic” means “I’ll believe whatever suits me politically” to those who, in the face of all this profess to be “still making up their minds” or “unable to judge”. Both are displaying absurd credulity regarding the nonsensical “evidence” put forward by the anti-science side and a massive over-estimation of their own reasoning powers regarding a mass of scientific literature they have never read and never intend to. But the first group are at least clearer about their motives.

Categories: Oz Politics, Science Tags:

Menzies’ heir

April 3rd, 2011 78 comments

Most of the press coverage of Julia Gillard’s Whitlam oration has focused on her partisan digs at the Greens, and even then only in an “inside football” way, that is, on the likely short-term political implications rather than the validity or otherwise of her criticism.

The only responses I’ve seen pay any serious attention to what is (or at least is presented as) a major restatement of Labor’s vision have come from bloggers, such as Trevor Cook, Kim at LP and Jonathan Green. It’s also worth rereading this piece by Mark Bahnisch responding to an earlier speech. I broadly agree with much of this commentary, but I thought it would be worth offering a response of my own.

Both implicitly, by omission, and explicitly, in rhetoric and substance, Gillard’s speech represents a repudiation of the Labor tradition exemplified by Gough Whitlam, and even, in many respects, of the market liberal reworking of that tradition under the Hawke-Keating government.

It is a speech that could have been given, with absolute sincerity, by John Howard on behalf of the Liberal party, and marks, in both large and small ways, Gillard’s acceptance and celebration of the values and beliefs of the Liberal party as espoused by its leaders from Menzies onwards. Indeed, with more historically apposite examples (Reid, Deakin and Lyons for example, instead of Barcaldine, Curtin and Chifley) this would have made quite a good Menzies oration.

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Some unsolicited advice for Anna Bligh

April 1st, 2011 25 comments

Over the fold, my column from yesterday’s Fin

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The fruitpickers lament

March 31st, 2011 52 comments

Way back in the 1970s, I spent a couple of short spells as an unemployed layabout, one of which was ended when I took a job as a fruitpicker, making (IIRC) $2 a day, which even then wasn’t food money (I wasn’t very good at it). Fortunately, the job included some basic accommodation and all the blackberries you could eat. And, even then the whinging from employers who claimed to be unable to get enough pickers was an old story.

Now, I see Tony Abbott is pushing the same line, wanting to stop dole payments in any district where there are (claimed to be) vacant fruitpicking jobs. After four decades of this stuff, we ought by now to have some actual evidence. So, I have a few questions

First, has there ever been occasion when significant volumes of fruit have gone unpicked because of a shortage of pickers? [1]

Second, has there been any occasion on which demand for fruitpickers has been enough that a person with no prior experience could make substantially more than the minimum wage (currently about $15/hour). ? [2]

And if, as I strongly suspect, the answer to both questions is No, what does that tell us about the expectations of the whinging employers. (I suggest, a ready supply of below-minimum wage workers, available on demand when needed, and ready to be sacked the moment they are not)

fn1 Not a strike, or some particular farmer so objectionable that all ir workers quit

fn2 I know that experienced pickers can do a bit better than this, but that’s not the relevant issue here.

Costa’s catastrophe

March 29th, 2011 138 comments

A catastrophe like the one that befell the NSW Labor Party at the weekend can scarcely be attributed to a single individual, and indeed there were many contributors. But one person stands out above all others as deserving of credit or criticism – former Treasurer Michael Costa. Having risen through the trade union movement, he made his bones in Parliament as a union-busting Transport Minister. Appointed by the utterly hopeless Morris Iemma as Treasurer, he persuaded Iemma to privatise the electricity industry, in direct contradiction of the platform on which Labor had campaigned, and the previous repudiation of privatisation by NSW voters.

As the massive unpopularity of similar moves in Queensland had shown, Labor was doomed unless it repudiated Costa, Iemma and privatisation. The party managed the first two, but, not unfortunately the third.

In keeping with his entire career, Costa quit the day he became eligible for a Parliamentary pension, and immediately emerged in his true colours as an open enemy of the labour movement and the Labor Party.

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The Campbells are coming

March 23rd, 2011 9 comments

Amid the excitement and consternation caused by Campbell Newman’s appointment as extra-Parliamentary leader of the LNP, no-one seems to have noticed a striking fact about the devotion and confidence of his followers. After Bruce Flegg declined some very pressing suggestions that he should spend more time with his family, not a single member of the Parliamentary Party stepped forward to offer the new leader a seat. While commentators have wisely opined that Campbell’s plan might be either crazy or brilliant, the alternative of a quick entry to Parliament, had it been available to him, would have been odds-on to win, given that the LNP was ahead in the polls even under whatshisname, the former leader.

Categories: Oz Politics Tags:

One Nation resurgent?

March 23rd, 2011 64 comments

Until a month or so ago, I was under the impression that the One Nation party had shuffled off into history. So, I was surprised, attending a lunch at which Joe Hockey spoke, to hear repeated questions from reporters about the role of One Nation in attacks on Hockey’s standard against the appeals to racism allegedly advocated by (Lib Immigration shadow) Scott Morrison. Then, on a recent visit to Sydney I heard David Oldfield spruiking the One Nation line on 2UE. And now Pauline herself appears at an anti-carbon tax rally, along with a bizarre cast of characters including Angry Anderson and the League of Rights. Does anyone have any insight into what’s going on here? Is this just some bandwagon-jumping or is there a real resurgence of One Nation and similar groups?

Categories: Oz Politics Tags:

Campbell’s cockamamie campaign

March 22nd, 2011 28 comments

Brisbane Lord Mayor ‘Concrete’ Campbell Newman has announced that he wants to be State Premier, but is not prepared to give up his current job to run for the office. Rather, he plans to run for a seat at the next election, then challenge for the leadership of the LNP, which, he hopes will have a majority. Like Malcolm McKerras and others, I’m bemused by this strategy. What is the Parliamentary LNP supposed to do between now and the next election, and what kind of campaign can be run on this basis? Will there be two policy speeches?

Supposing that Newman has majority support in the Parliamentary LNP, their best option would seem to be deposing the current leader Langbroek (no great loss there, admittedly) and replacing him with someone willing to act as a stand-in. That would be a pretty miserable position to occupy (imagine the fun the government will have with it) but perhaps someone can be found to do it. The situation in the City Council will be similarly farcical, giving Labor a chance of regaining its majority.

However, I suspect that reality will sink in soon, and that this cockamamie idea will be abandoned. Either Newman will back away from state politics or he’ll have to follow the standard route in such circumstances finding someone willing to stand aside and create a by-election.

Between the successful management of floods and this farce, a Bligh government that seemed doomed (deservedly so in my view) now looks to have a good chance of retaining office.

Update It looks as if they are going with the “stand-in” plan, with Jeff Seeney as the bunny. Both Langbroek and Springborg have quit. Seeney certainly won’t outshine Newman, but he can still do the LNP plenty of damage. I still predict Newman will be forced to run for a seat in Parliament before long. Perhaps one of the departing leadership team will be kind enough to make way for him, but I wouldn’t count on it.

Categories: Oz Politics Tags:

Oz Fail #4

February 20th, 2011 16 comments

Oz chief political reporter Matthew Franklin tries for a bit of a beat-up with this story about some platitudinous speeches given by Swan and Gillard at the annual conference of the AWU, where, as is customary on such occasions, they said some nice things about their hosts, Bill Ludwig and Paul Howes. Franklin points out, rightly enough, that the AWU supported Gillard in the overthrow of Kevin Rudd. The real problem is with the sub-editor who ran this routine piece of snark with the striking headline “PM, Swan in praise of union ‘saboteurs’ “.

According to the standard, slightly arcane principles that apply here, the use of single quotes around the word “saboteurs” implies that Gillard and Swan actually used the word as a term of praise, with the rest of the headline being a paraphrase. This isn’t quite as crazy as it might sound – the original saboteurs were factory workers who threw their wooden shoes into the machinery as a crude but effective way of protesting against speedup. A historically minded radical might suggest that similar resistance to the work intensification push that began in the 1990s was to be applauded. But of course, Gillard and Swan are never likely to say anything like that, and they didn’t.

The error wouldn’t be so serious if the article quoted someone else calling Ludwig and Howes saboteurs, though it would be more correct to write “PM, Swan ‘in praise of union saboteurs’ “. But in fact there is nothing of the kind, and no hint that anything has been lost in editing. It’s simply that the sub (or maybe the editor) is incorporating his own opinion. If so, it would be more appropriate to run it as a factual description without any quotes. That would entail dropping any pretence of objectivity, but such pretences have worn pretty thin at the Oz.

There are still pockets of good journalism at the Oz. But when even the craft values of subediting are sacrificed to the paper’s political agenda, there isn’t much hope for the future.

Categories: #Ozfail, Oz Politics Tags:

Hockey sticks his neck out

February 16th, 2011 49 comments

I was at a Media Club lunch in Brisbane today where Joe Hockey was the speaker. Amid a bunch of fairly predictable talking points, he offered the view that, if we want to address problems of housing affordability, measures that increase demand, like the First Home Buyers Grant, are exactly the wrong way to go. He’s right of course, and just about every economist who has every looked at the issue has made the same point. Still, given the sacred-cow status of home ownership (both in itself and as a speculative investment) it’s the kind of statement that Sir Humphrey would call “courageous”.

Strikingly, not one of the assembled journalists took him up on it. Instead they bowled him up a series of questions on the kerfuffle du jour regarding the Christmas Island funerals all of which (to mix my cricketing metaphors) he padded away, let through to the keeper or dispatched to the boundary with ease. If I had been looking for a story instead of going through the motions, I would have asked something like “How much could the government save by abolishing FHBG, and where would the money be better spent”.

Given that Hockey has tackled one sacred cow, let me express the hope that some truly courageous politician will make the point that the biggest source of house price inflation is the set of subsidies to owner-occupied housing including exemption from land tax and capital gains tax and exclusion from most means tests. Michael Egan tried to tackle this in NSW, only for houses worth more than $1m IIRC, and got nowhere.

Categories: Oz Politics Tags:

Depressing …

February 8th, 2011 25 comments

… that with leadership as underwhelming as Gillard’s, the alternative should be so bad as to make it no contest for anyone who cares about policy.

Categories: Oz Politics Tags:

Goodbye 2010

January 1st, 2011 76 comments

Well, 2010 is over and it’s been a year of contradictions for me. In personal and family terms, things have gone very well, starting with the birth of my first grandson, James in March. Then there’s my literary offspring Zombie Economics, which seems to be going very well, and my election as a Fellow of the Econometric Society (quite a big deal in the academic circles where I move, if not exactly a barbecue-stopper among family and friends in general).

Politically on the other hand, it’s been a year of frustration.

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Categories: Life in General, Oz Politics Tags:

In the name of God, go!

December 24th, 2010 146 comments

If I could have one big present for Xmas, it would be to wake up and discover that Keneally and Bligh had both proffered their resignations, and devoted their lives to undoing some of the damage they have done to the Labor movement.

Categories: Oz Politics Tags:

Murdoch backs Bligh

November 23rd, 2010 23 comments

Michael Stutchbury’s piece a while back supporting the QR asset sale (my critique, his response) turns out to have been the first of many as the Murdoch press tries desperately to talk this flop up. But the punters aren’t buying, and even some of the subeditors appear not to have got the memo. This (unsigned) piece in the Courier-Mail says that, rather than repaying the debt that was the pretext for the sale, Bligh and Fraser plan to spray much of the proceeds on electoral bribes of one kind or another. The text gives the most positive spin possible, but the headline referring to a “desperate push for votes” gives the game away.

And if Bligh and Fraser weren’t feeling desperate, the comments on the story ought to make them so. In 127 comments, I didn’t find one that actively supported the government, although there were a fair few that were also critical of the hopeless LNP. My personal favorite from “Skeptic”

Hands up those who reckon they can be bribed by this behaviour. If so, I have a bridge to sell you. Oh, wait, they’ve sold that too…

Bligh and Fraser are doubtless on the way to well-paid sinecures in the financial sector. But those members of the Labor Caucus who don’t have anything lined up post-politics must soon realise that their only chance of keeping any seats at all next time round is to sack them both.

Categories: Economic policy, Oz Politics Tags:

Living in the 80s

November 14th, 2010 24 comments

If you want to see why the Labor party is in so much trouble, it’s useful to read this piece in the Oz by Paul Howes, one of the brighter lights on the right of the party. Howes says

For a generation or more we have witnessed a flowering of tory political culture. We have watched ideas flowing out of places such as the Sydney Institute and the Institute of Public Affairs in Melbourne. The IPA, the HR Nicholls Society and the Sydney Institute may propose policies that are abhorrent to me, but they’ve created a culture of ideas to nourish conservative politics.

This would have been an unremarkable claim to make in the 1980s (a generation ago). But today ?? The Sydney Institute is Gerard Henderson, who hasn’t had a new idea since the “Federation Trifecta” in 1990. Around the same time, the IPA with John Hyde rose briefly above its history as a conduit for business donations to the Liberal Party and its present role as an advocate of anti-science delusionism on issues ranging from tobacco to global warming to the Murray-Darling Basin (the latter not quite so much since the departure of Jennifer Marohasy). The HR Nicholls society has been moribund for years – its last notable contribution was as the 2006 venue for Nick Minchin’s disastrously leaked suggestion that WorkChoices had not gone far enough (he was bagged for this by John Howard in his autobio)

Howes goes on to mention, and dismiss, a plethora of leftish thinktanks (Per Capita, the Centre for Policy Development, Catalyst, the Australia Institute, the Evatt Foundation, the Fabians (Disclosure: in one way or another, I’m associated with most of them)) any one of which has had more new ideas in the last few years than the moribund shells he describes have had in decades.

Howes’ assessment reveals that, like most Australian politicians and commentators he is still in thrall to the 1980s agenda. The fact that, far from coming up with “brilliant new ideas”, Howes is sticking with an orthodoxy that was already solidifying when he was born in 1981 wouldn’t matter if these old ideas had proved their worth. But they have comprehensively failed, most notably in the current global crisis.

Howes is no fool and has at least made explicit what is merely implicit in the thinking of the average Labor politician (Bligh, Fraser, Keneally, Gillard and Brumby being obvious examples). But it is little wonder that the Greens are making such headway when the major parties offer a bipartisan consensus on such tired and failed ideas.

Categories: Oz Politics Tags:

Yet another reason we would be better off without intellectual property

October 23rd, 2010 18 comments

Stutchbury on QR (and Quiggin)

October 17th, 2010 13 comments

Michael Stutchbury in the Oz offers a case for the Bligh government’s asset sales, and that of QR in particular. Mostly, he wants to argue that the sales will put an end to the oppression of the bosses by the workers[1], or as he puts it, would allow business to “clean up its anti-management culture”. But he also tries a half-hearted defence of the official case for privatisation, that selling assets will finance non-commercial investments.
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Crying poor

October 5th, 2010 41 comments

The Queensland government has cited an alleged financial crisis as one of its spurious justifications for the sale of public assets, but apparently it can find a spare billion or so to spray on yet another sporting event which will almost certainly return little or nothing in revenue. I had my say on the Commonwealth Games bid here and here. The ABC story includes Treasurer Andrew Fraser’s admission that the proceeds of the asset sales, which were supposedly going to finance schools and hospitals, are the source of this luxury expenditure.

I’m happy to say that on this occasion I was accurately quoted in the Oz. The reporter Roseane Barrett did her job properly, and there was no editorial interference, presumably because the story was critical of a Labor government.

Categories: Boneheaded stupidity, Oz Politics, Sport Tags:

One last chance

September 10th, 2010 15 comments

The decision by Queensland coal companies to drop their bid for the track assets of Queensland Rail hands the state’s Labor party one last chance to hang on to office. There is still time to dump the economically silly and politically suicidal idea of a public float for QR, either because the Premier and Treasurer suddenly announce that circumstances have changed (as they did, going the other way, immediately after the last election) or because the Caucus decides that taking a chance on a new leadership team is preferable to the certain oblivion to which Bligh and Fraser are leading them.

According to this poll report, Labor’s primary vote has fallen to a horrendous 29 per cent. Looking at the dismal performance of Federal Labor in Queensland at the recent election, in which the LNP campaigned against Bligh rather than Gillard, there’s no reason to doubt that this would be translated into reality unless something changes. Certainly, on current policies, I’ll be preferencing the LNP ahead of Labor.

Categories: Oz Politics Tags:

Coalitions

September 9th, 2010 58 comments

I was too clever by half with my prediction in 2007 that “the Liberal Party will never win another federal election”, but it still looks as if I might be right. My point of course, was not that Labor would be in forever[1], but that the Liberals and Nationals would be forced to merge before they could get back in. The merger has taken place in Queensland, with the result that the current Coalition includes only six members elected as Nationals. The future for Lib-Nat coalitions at state level doesn’t look much better. On current trends, NSW Labor will be wiped out so thoroughly that the Liberals will have a majority in their own right, and anything they give to the Nats will be an exercise in charity. It’s possible that a Lib-Nat coalition could get in at the forthcoming Victorian election, but unlikely, which brings me to a more interesting point.

The Labor-Green-independent coalition that has emerged at the national level is still being treated by the Canberra pundits as an aberration, but it’s becoming the norm for Labor. Labor governments depend on Green support in the ACT and Tasmania. The NT government relies on an independent and the same has been true in the past in SA, Queensland and Victoria. On current indications, the next round of state elections should see Labor beaten in NSW and Queensland (at least if they stick with Anna Bligh and privatisation). Victoria is the state where Green support is strongest, and any remotely fair electoral system would see Labor forced into coalition with the Greens. Whether the Green can actually win enough Lower House seats to bring this about remains to be seen, but Adam Bandt’s win at the national level has certainly brought this into the realm of the possible.

So, it’s entirely possible that, in a decade or two, when we talk about “the coalition”, we’ll be referring to Labor-Green, not Lib-Nat.

fn1. That said, I never anticipated anything like the fiasco by which Labor managed to turn the unassailable position they held in December 09 into the hair’s-breadth margin they nnow hold.

Categories: Oz Politics Tags:

The miracle of democracy, Part IV

September 7th, 2010 94 comments

It’s finally over, and the outcome (if it holds) looks like the best possible. If it’s true that a country gets the government it deserves, we must all have been doing a lot of good deeds lately. Despite the efforts of both major parties to force us into a choice between focus-grouped piles of bribes and banality, we appear set for parliamentary reform, and a serious approach to climate change, tax reform and broadband policy[1].

fn1. Trying to watch the Windsor-Oakeshott press conference online was an object lesson in the inadequacies of our existing networks.

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