An email from Paul Norton reminds me that it’s time, as usual for Weekend Reflections. The idea is that, over the weekend, you should post your thoughts in a more leisurely fashion than in ordinary comments or the Monday Message Board. Paul kicks off with some polling data that does not support the idea (pushed from a variety of perspectives) that Australians are becoming more traditionalist on gender issues. Feel free to discuss this, or something completely different.
Author: John Quiggin
Hypocrisy is the tribute vice pays to virtue
That’s about the best I can say for the agreement on climate change announced today. It appears to offer nothing beyond an acknowledgement that the problem exists.
This supposedly represents the response of the US, China, India, Australia, Japan and North South Korea to the problem of climate change, but if so, the Americans don’t seem to have noticed. There’s a brief item in the NYT, but it doesn’t even appear in the International section of their website. Going directly to the White House website, there’s nothing on the front page, but digging a bit deeper produces an innocuous item headed President’s Statement on U.S. Joining New Asia-Pacific Partnership which I’ve reproduced over the fold.
If this is the Bush Administration’s answer to Kyoto, they’re keeping pretty quiet about it.
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A happy day
The release of the remaining children being held in detention brings an end to the worst single part of this sad and shameful chapter in our history. At the same time, the oppressive use of Temporary Protection Visas has been rejected by the Federal Court. I hope the government will not appeal against this decision, and that we can put the whole sorry episode behind us, and start the search for a more rational and humane solution to the problem of responding to asylum seekers.
Carr resigns
Bob Carr has resigned as Premier of NSW. Overall, his career looks pretty successful, but it would have looked much better if he’d quit a couple of years ago.
As always in NSW, the choice of successor is in the gift of the Right[1] faction. The big decision they have to make is whether to give it to one of their own or to an outsider. It seems obvious they will go for one of their own, but all the historical evidence suggests they should not. The favorite sons (and they’re nearly all sons) of the Right have been almost uniformly disastrous at the ballot box. Back in the 70s, Pat Hills couldn’t take a trick against the corrupt and not particularly competent Askin government, so they brought in the leftish Neville Wran and enjoyed a decade or more of electoral success. When Wran left, they put up their long-time leader Barrie Unsworth, who lost immediately to Nick Greiner. Carr, his replacement, was aligned with the Right, but was far too bookish and intellectual to be a real part of the Sussex Street machine.
In the decade or so since Carr took over, a string of rightwing apparatchiks has been put up as potential successors: Scully, Costa, Della Bosca and so on. Michael Lee’s failed run for Mayor of Sydney was most probably grooming for a run at State office. As far as I can see, all that is required of these candidates is that they should look OK in a suit and (optionally) be able to string together a coherent sentence together.
It seems to me the obvious choice for Carr’s replacement is his deputy Andrew Refshauge (who is, under the spoils system, necessarily a member of the Left). He’s held a fair number of portfolios, including hot potatoes like health, without incurring fatal damage, and comes across reasonably well on TV. If it weren’t for the absurd and anachronistic factional system, he’d probably be elected unopposed in circumstances like this.
But if elevating a hereditary enemy like Refshauge is too much, how about Frank Sartor? I haven’t liked everything he’s done since entering Parliament, but he’s tough, able and a good campaigner, which is more than you can say for anyone who’s come out of Sussex Street in the last fifty years or so.
fn1. This term once referred to political alignment, along with other equally obsolete factional identifiers like “socialist left”. Now I think it means that they have the “right” to run the party.
Reading the small print (crossposted at CT)
This morning’s email included one urging me to sign a statement headed “United Against Terror”. As the email said
The statement begins:
Terrorist attacks against Londoners on July 7th killed at least 54 people. The suicide bombers who struck in Netanya Israel on July 12 ended five lives including two 16 year old girls. And on July 13 in Iraq suicide bombers slaughtered 24 children. We stand in solidarity with all these strangers hand holding hand from London to Netanya to Baghdad: communities united against terror.
The statement ends:
We invite you to sign this statement as a small first step to building a global movement of citizens against terrorism.
Based on these extracts, I would have been happy to sign the statement, for what such gestures are worth. Having read the full statement, however, I decided not to, and concluded that the statement tended more towards disunity in the face of terrorism than unity. After reading some of the supporting statements on the website, I was very glad of this decision.
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A back-of-the-envelope calculation on unfair dismissals
The comments thread below arising from my piece on unfair dismissals having gone badly meta[1], let me extract one useful point and do a quick calculation. Suppose we accept the estimate by commenter x-anon that employers typically choose to pay out three months’ wages when dismissing someone for cause (that is, for reasons other than redundancy), rather than face the possibility of unfair dismissal action.
I’m going to guess that an upper bound for the proportion of employees annually dismissed for cause in small businesses is 4 per cent (for large businesses it would be smaller and for the public sector smaller again). Then that implies that the effect of the 3-months payout policy is to raise the average wage bill by 1 per cent. Unless all dismissals for cause are justified, there will be an offsetting effect, since rational employees who regard unjustified dismissal as a possibility will want a higher wage to offset the implied reduction in expected payments. Assuming justified and unjustified dismissals are equally common (here it’s the viewpoint of the average employee that matter), and disregarding risk aversion, the net saving falls to 0.5 per cent. Given a typical labour demand elasticity of 0.5 the net increase in employment demand is about 0.25 per cent for small business (the relevant distinction is those with less than 100 employees). If, say, 40 per cent of workers are employed in firms affected by the changes, the net increase in employment is 10 000 jobs. This is a once-off increase, not an increase in the annual rate of job creation.
Of course, this is a rather simplistic calculation, not taking into account effects on employer confidence, worker morale and so forth, but it gives a feel for the order of magnitude involved. A policy initiative that might generate 10 000 new jobs is worth looking at, but it ought to be put in perspective. Telstra alone has cut many more jobs than that in the past decade, which suggests that a focus on making it easier to get rid of people is probably getting the wrong end of the stick.
fn1. Godwin’s law invoked after only 30 comments.
Bahnisch & Quiggin on IR changes (crossposted at LP)
Here’s a paper Mark Bahnisch and I have written on the government’s proposed IR changes, aimed at Online Opinion. We’ll try for a more complete analysis when we both get a bit more spare time. Comments appreciated. Crossposted here at LP
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Monday message board
As usual on Monday, you are invited to post your thoughts on any topic. Civilised discussion and no coarse language, please.
What I’ve been reading
This and that, including the latest Harry Potter which my son devoured within hours of its release. But more seriously, I’ve finally written my long-promised (draft) review of Affluenza (over the fold). Comments much appreciated.
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More bad news from London
The news that the man shot dead by police in a London station was not connected with the terror attacks is very disturbing to me. It’s too early to draw any conclusions about whether the police acted properly, but there’s no doubt that, however it happened, this was a win for the terrorists, who have claimed another innocent victim. As the name implies, the main point of terrorism is to create fear, and a situation where people are afraid of the police who are supposed to be protecting them is far worse than anything that can be created by the small risk of being in the wrong place when a bomb goes off.
Terrorism is essentially a criminal activity, and the only way to beat it in the long run is through effective police work. The terrorists of the radical left and right who operated in the 1970s and 1980s were beaten in the end, and the same will be true of the jihadists. But so far at least, the response to the London attacks seems to have more failures than successes. Let’s hope there’s better news soon.
