Prebutting the CIS: Lifters and leaners, yet again

Robert Carling of the Centre for Independent Studies has just released a paper, with the title “Voting for a Living“, an even more offensive reprise of Joe Hockey’s “lifters and leaners” rhetoric of a few years ago. The Oz (no link) ran a report by  with the opening claim

The top fifth of households by ­income are almost entirely supporting the bottom 60 per cent of earners

Of course, this is absurd. The actual CIS paper centres on the fact that 60 per cent of the population receive more in benefits and public services like health and education than they pay in taxes, while the top 20 per cent pay more in taxes than they get back. The claim then is that the parasitic 60 per cent are voting for a redistributive state. That’s a long way from “almost entirely supporting”.

If this sounds familiar it’s because  Creighton made almost identical claims in 2014. I rebutted them at the time, in a piece for the Guardian. The key point is that,  since government spending and taxation must be approximately equal[1], we collectively get back from government what we pay in, whether this takes the form of cash payments or public services. So, if services are provided more or less equally, those with an income below  (above) the mean will get back more (less) then they put in. Add in the fact that, thanks to income inequality, mean income is higher than median, and you get the Carling result automatically.

The current version of the paper extends the 2014 analysis in a couple of ways. First, it has a broader coverage of revenue (including GST) and expenditure (including health and education). Second, it includes a claim that the position of the median household has shifted since the 1980s, from being roughly in balance to being net recipients. However, a closer look suggests that all of this change occurred between 1983 and 1993 that is, under the Hawke-Keating government. And, since there’s no data before 1983, we can’t say much about longer term trends.

The other notable change is that the report is even clearer in stating that there is no legitimate basis for asking high income earners to contribute to society as a whole, for example to reduce income inequality.

Shorter Carling and Creighton:  High income earners pay more tax than everyone else and that’s bad.

All this contrasts strikingly with last week’s rightwing talking points, making much of the relatively limited growth of inequality in Australia due, almost entirely, to the redistributive policies introduced under Hawke and Keating. The Oz was all over this, and one of their sources was none other than Robert Carling

 

fn1. A couple of qualifications on this, which work in opposite directions. Some government spending  is financed by growth in debt and income other than taxes, which means that, on average, by the Carling calculation, we get back more then we pay. On the other hand, some spending categories, such as defence, aren’t included, which goes the other way.

Tweet trouble

According to Chris Mitchell at the Oz (paywalled, I think), I’m the mastermind (or at least a mastermind) behind the original version of Emma Alberici’s now-rewritten analysis of company tax cuts. Here’s Mitchell

In Alberici’s case a lot of weight was given to left-wing academic John Quiggin and economist Saul Eslake, a prominent commentator whose position on the central question — do corporate tax cuts eventually trickle down as increased wages? — seems to have changed over the years.

It’s nice to be so influential, but there’s just one problem. In Alberici’s original article (here), I don’t get a mention.

But maybe Alberici is presenting my ideas second-hand. Sadly, the arguments I’ve put forward on the topic don’t get a run either. Here’s the summary of my piece in Crikey (also paywalled, I fear)

Optimistic tax models put the average Australian at being 0.1% better off under the proposed company tax cuts. And the good news is they’ll only have to wait 25 years for that tiny benefit to appear!

Alberici doesn’t mention this.

So how did I get top billing? The villain, as usual, is social media. Twitter user (tweep?) Matt K asked me whether there were any mistakes in the Alberici piece and I said no. Apart from a couple of replies to further questions, that was my entire contribution, as you can see from the thread of the conversation. But, as they say nowadays, it went viral, at least insofar as a comment on tax policy can go viral.

Before I knew it, I was being attacked from all directions. Helen Razer said I was a bogus “leftist”, while Aaron Patrick at the Fin hit me from the right because I mentioned Marx and Engels in the draft introduction to my book. To be fair, Razer wrote to explain her position. By contrast, Patrick’s whole technique is verballing and out-of-context gotchas’, so I don’t expect that to change.

I do get a passing mention in the revised column, but since my name is mis-spelt, I think it’s safe to assume that I’m not a primary source. Obviously, Mitchell didn’t get around to reading the original (maybe the research skillz of Newscorp aren’t up to locating it) and assumed that I was quoted there.

While I’m on the subject, Mitchell had an amazing piece a while back (not worth linking, since Paul Kelly and Mark Latham have already trodden this ground many times) about the end of freedom of speech in Australia. The burden of it is that decent, ordinary Australians like Mitchell and Andrew Bolt, limited as they are to major national newspapers and broadcast media, can’t say what they think about Muslims, lefties and so on any more without people on Twitter saying what they think about Mitchell and Bolt. As Tim Dunlop says in a similar context, any less self-reflection and they’d be vampires.

Researcher: a new term of art for #Newscorpfail ?

The Murdoch press has just about run out of scientists it can find to support its various anti-science jihads/crusades#. So, it seems to have come up with a new term of art. The word “researcher” is now the preferred Newscorp description of unqualified rightwingers doing bogus analyses that would never pass muster as peer-reviewed research. (Just to confuse things, the same term is used to describe genuine research.)

A couple of recent instances: Jennifer Marohasy*, a biology PhD who spent quite a few years heading the IPA Science Policy unit is cited as a “climate researcher” disputing the classification of Cyclone Marcia as a Category 5 (this is part of a general conspiracy-theoretic attack on the Bureau of Meteorology).

Steven Cooper, an acoustics engineer who conducted an anti-wind farm study with a sample size of six(!), is also described as a “scientific researcher”.

Are these isolated cases, or can readers point to more along the same line?

# The terms have the same meaning: pick whichever you prefer
* Her name is spelt Morohasy in some reports.

Tax dodgers project alarming revenue shortfall #Newscorpfail

The Murdoch press is touting a report from Price Waterhouse Coopers, predicting all manner of disaster for Australia if we do not mend our debt ridden ways. A typical example is a projection of $1 trillion in debt by (IIRC) 2037. There’s no link in the stories I’ve read, and nothing obvious on the PwC website, so I’ll make some more general observations.

* It’s startling to read this kind of sermonizing from an outfit like PwC, recently described by the British Parliamentary Public Accounts Committee as ‘promoting tax avoidance on an industrial scale’. If we are facing a fiscal crisis, shutting down firms like PwC seems like an obvious prerequisite to achieving a solution

* Even on the hypothesis that this was in fact a serious effort at assessing our fiscal condition, why would anyone give any credence to one of the accounting firms that gave us the Global Financial Crisis

* The projections are highly implausible, though without access to the report I can’t point to the specific dodgy assumptions used to derive them.

* The same issues are regularly examined by the Commonwealth Treasury in its Intergenerational Report. The 2015 report was legally required to be published on 3 February but has not appeared. Now instead of the IGR, the government’s media arm comes out with this piece of tripe. Was the IGR not alarmist enough for Hockey?

Update My point about the IGR was pure conjecture when I wrote it. But on TV last night I saw Hockey pushing the PwC “report” (still vaporware, AFAICT), even though he is supposedly too busy to fulfil his legal obligation to release the IGR.

Further update Commenters Megan and Liam have dug up a link to a two-page paper from a talk given a few days ago. This in turn links to publications from 2013 and 2014, drawing on estimates published in 2012 which (I imagine) rely on data going back even earlier. The same alarming projections appear, but still without any basis for the calculations. To sum up, this is a total beat-up.

Fools rush in …

Most people misrepresented by the tabloid press have little recourse. Defamation actions are slow, risky and don’t in any case produce a proper retraction. The Press Council and similar bodies are self-defence clubs for the media. And letters to the editor are a waste of time, if they are printed at all.

But if you’re a major celebrity like George Clooney, your response is newsworthy. After the Mail Online published a false claim about his impending marriage, followed by a weaselly apology, Clooney called them out, making it clear that this website (and its associated print version [1]) have the same degree of credibility as the National Inquirer and similar rags.

Of course, anyone who was paying attention already knew that. The Daily Mail runs all kinds of nonsense, from baseless gossip about the famous, to anti-science on all kinds of topics, from antivaxerism to “Frankenfoods” nonsense about GM crops [2], to climate denialism.

My guess is that most readers are aware of this, much like followers of professional wrestling. They enjoy malicious/salacious gossip that panders to their prejudices. If some it is true, so much the better. If not, it’s still entertaining.

Only a fool would actually believe anything printed in this rag. But climate denialism makes fools out of its adherents, who have to believe a nonsense conspiracy theory to make any kind of sense of their position. So, it’s not so surprising that people who would correctly dismiss 90 per cent of what’s published in the Mail credulously reproduce what it prints on climate change.

The leading sucker in this respect is Andrew Bolt (unless he’s in on the joke, too in which case his readers are doubly suckered). But he’s followed by the usual suspects, notably including the Oz, Tim Blair and Miranda Devine.

fn1. Apparently the Mail tries to maintain a multiple branding model in which the print version is supposed to lie only occasionally while the online version lies all the time. I can’t see this working for long.

fn2. As previously discussed, there are plenty of serious issues around GM food. But the kind of nonsense implied by terms like “Frankenfoods” has been thoroughly debunked by now.

Disaster in Iraq foretold: Well, not quite

Along with the rest of the neocon crew, Andrew Bolt is blaming the collapse of the Iraqi state on Obama’s withdrawal of US troops in 2011. Exactly how Obama was supposed to repudiate an agreement signed by Bush, and maintain an occupation force against the wishes of the Iraqi government (he tried, but failed to negotiate an extension) is not explained. But, no matter.

At least Bolt and the rest warned us that Iraq was still too fragile to be left on its own, and that an indefinite occupation was needed. Well not exactly. Here he is in 2009, gloating over the fact that Obama was going slow on withdrawal and thereby disappointing his supporters. That could be read either way, I guess, but there’s no warning that Bush’s timetable needed changing.

More striking is this piece from 2007, claiming that “the war has been won“. Here’s what he has to say about future prospects

Violence is falling fast. Al Qaida has been crippled.

The Shiites, Kurds and Marsh Arabs no longer face genocide.

What’s more, the country has stayed unified. The majority now rules.

Despite that, minority Sunni leaders are co-operating in government with Shiite ones.

There is no civil war. The Kurds have not broken away. Iran has not turned Iraq into its puppet.

And the country’s institutions are getting stronger. The Iraqi army is now at full strength, at least in numbers.

The country has a vigorous media. A democratic constitution has been adopted and backed by a popular vote.

Election after election has Iraqis turning up in their millions.

Add it all up. Iraq not only remains a democracy, but shows no sign of collapse.

If I were an American reading that, I would have said it was time to bring the boys and girls home, as Bush agreed to do in October 2008.

Bolt and the right to be a bigot

The ABC News report on the government’s legislation to repeal section 18C of the Racial Discrimination Act, motivated by the Bolt case, makes interesting reading. Foreshadowing the legislation designed to prevent future cases of this kind, AG George Brandis notes that it defends “the right to be a bigot“.

Brandis didn’t draw the obvious implication, but he didn’t have to. Bolt has made a career out of pandering to the bigotry of his audience. As with others in the crowded field of rightwing journamalism, it’s not clear whether Bolt himself is a bigot, or whether he just plays one on the Internet, but the act is loud enough to please his ignorant and bigoted readers, and skilful enough to earn him plenty of friends among people who should know enough to be ashamed of themselves.

I don’t have a fixed view on the legislation in question, but my feeling is that racial bigotry should, at the least, be an aggravating factor in cases of individual defamation. If that rule were applied, the plaintiffs in the Bolt case would almost certainly have received substantial damages in individual defamation actions, given the findings that Bolt’s racially loaded claims about them were factually false and “not made reasonably and in good faith”.

Update I should have mentioned that “bigot” is a euphemism for the R-word, which our defenders of free speech insist must never be applied to anyone, with the exception of one person who is excluded here by virtue of Godwin’s Law.

Bolt: Every word he says is a lie, including “and” and “the”

Andrew Bolt (no link) has repeated the lie that I drastically overestimated the impact of a carbon tax on global warming. In fact, it was Bolt who was out by a factor of 100 (Full details here). Rather than rehash this dispute, I’d thought I’d list some of Bolt’s greatest hits, or rather misses.

* Here he is, confusing the stratosphere and the troposphere, and claiming to have disproved climate science as a result

* Here, being fooled by a David Rose claim so absurd that even the Mail on Sunday had to retract it

* Here, denying the fact that Arctic ice is disappearing fast, a fact that is now regularly proved by sailing through the previously impassable Northwest Passage, and by the intense international negotiations about sovereignty over the newly opened waterways

* Here, claiming the carbon tax would be “ruinous”

* Here, claiming that radioactivity is good for you

* Here, unable to understand the meaning of the word “average”

* Here, defaming the Bureau of Meteorology, and lying about it

* Here, being fooled by a LaRouchite conspiracy theory on DDT

That’s just from my blog and just for the last five years. I haven’t even got to the Iraq war, where he combined credulous faith in repeated announcements of victory with vicious denunciations of all who predicted, correctly, that the war would be disaster, and documented that disaster as it unfolded.

Anyone who believes anything Bolt says is a fool. But I suspect that, like Bolt himself, most of his fans know he is talking nonsense and don’t care. He’s a tribal ally, and he’s good with snark and slander, and that’s good enough for them.

Sauce for the goose

Among those hyperventilating about the ABC decision to publish the information about the spying fiasco, Andrew Bolt has been every bit as vociferous and hyperbolic as you would expect. Of course this is silly: the UK based Guardian was going to publish anyway, and if they had, for some reason, chosen not to do so, Snowden and his team could have given it to the Indonesian press, which would have been an even worse outcome for the Australian government.

In this context, it’s worth recalling that Bolt wasn’t always so highminded about protecting our nation’s secrets. Back in 2003, when Andrew Wilkie resigned from the Office of National Assessments because he could not stand the way Iraq intelligence was being “sexed up”, Bolt was denouncing anyone and everyone who suggested that the Iraq war was anything other than a brilliant success based on overwhelming evidence. Somehow, he received a leaked copy of a report written by Wilkie, which, with his characteristic method of selective quotation, he used to attack Wilkie’s credibility. The Howard government (which could not, of course, quote the original report) used Bolt’s article to attack Wilkie. As Mike Seccombe observed at the time

You have to admire the neat circularity of it: top secret information is leaked to a government-friendly journo, who puts bits of it deemed damaging to Wilkie on the public record. Downer’s office briefs Senator Macdonald using that information.

This is part of a more general information. When secrets embarrass the government, leaking them is a major crime. When the government wants to attack its opponents, leaks are just part of politics. I don’t have a problem with journalists who publish leaked information without fear or favor. But someone like Bolt, willing to be used as a conduit for leaks that make the government look good, and then to pontificate about the immorality of leaks that make the government look bad, isn’t a journalist – he’s a lackey.

And looking back again, it’s worth remembering that Wilkie was right, that every word Bolt wrote about Iraq turned out to be utterly, howlingly wrong, and that he has never apologised or retracted. The credibility of anything he writes now should be assessed in that light.

Abbott's Sister Souljah non-moment

As I said in my last post, Tony Abbott has set himself the tightrope-walking task of maintaining his government’s official endorsement of mainstream climate change, while keeping his denialist base happy. Having made a mess of this with his bushfire comments, he had a chance to rectify the situation when he gave an interview to denialist and conspiracy theorist Andrew Bolt. Newscorp ran in under the headline “Andrew Bolt tackles the PM on the big issues”, but Bolt was playing touch, not tackle.

The interview was a sycophantic exercise in mutual admiration, with all the tough questions you might expect from, say, Anne Summers interviewing Julia Gillard or Kevin Rudd interviewing himself. But such interviews present smart politicians with the chance to play against type, by disagreeing with the interviewer on an issue dear to the base, but politically problematic for a would-be statesman. Presented with a soft lob question about the bushfires, Abbott could have taken the chance to define his own position as the “sensible centre”, by repudiating both Bolt’s denialism and the “alarmism” of those stressing the link between bushfires and climate. Bill Clinton famously did this when he denounced radical rap artist Sister Souljah, signalling the shift to the right undertaken by the Democratic Leadership Council of which he was part.

Instead, Abbott chose to dig himself deeper, extending his denialism on bushfires and further claiming that the observation of record high temperatures is not evidence of climate change. I mentioned in my last post that he would have a problem in formulating a response to the likelihood that 2013 will turn out to be the warmest year in the Australian observational record. He’s chosen his answer now, one that is unlikely to carry much credibility except with those already committed to denialism.

His summary of climate science, previously reported as “crap” has been replaced by “hogwash”, perhaps in deference to the sensitivities of Greg Hunt, who took strong exception to being confronted with the previous term by a BBC interviewer. I won’t link to Bolt, but the relevant passages are quoted over the fold.

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