Category: Uncategorized

Why a Job Guarantee will require higher taxation

John Quiggin23 Comments

Ever since I wrote Work for All with John Langmore back in 1994, I’ve been pushing the idea that a path to full employment requires an expansion of publicly provided services. For about the same length of time, Bill Mitchell has been putting forward similar (but not identical) proposals. At some point in this process, Bill became one of the advocates of what’s called Modern Monetary Theory, which makes the point that taxes don’t (directly) “fund” public expenditure. Rather, they ensure that the total demand for goods and services (for consumption and investment) don’t exceed the productive capacity of the economy, thereby generating inflation.

This reframing raises the question: does a Job Guarantee require higher taxation? The answer, using MMT reasoning, is “Almost certainly, yes”.

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The end of capitalism

John Quiggin15 Comments

Amid all the strange, alarming and exciting things that have happened lately, the fact that real long-term (30-year) interest rates have fallen to zero has been largely overlooked. Yet this is the end of capitalism, at least as it has traditionally been understood. Interest is the pure form of return to capital, excluding any return to monopoly power, corporate control, managerial skills or compensation for risk. If there is no real return to capital, then then there is no capitalism. Not just a result of the pandemic. A trend that goes back to the GFC.

The climate emergency after the pandemic

John Quiggin17 Comments

In an excess of zeal, I’m planning an Australia-specific book (working title, Australia after the Apocalypse: rebuilding a livable future) which will deal with the social, cultural and economic implications of the bushfire and pandemic catastrophes. This will complement The Economic Consequences of the Pandemic which will be global in its scope, but more narrow in its focus on economic issues. Over the fold, the opening section of a chapter on the climate emergency

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Hard-hat utopians

John Quiggin30 Comments

That’s the title of my latest piece in Inside Story, pointing that, even though the occupations most affected by the Covid pandemic are dominated by women and young people, government responses have been focused on ‘hard hat’ sectors, mainly employing prime-age men.

I appeared before a Committee of the Queensland Parliament making this point. I don’t think I had a lot of impact, but I will keep on pushing.

The end of ecomodernism

John Quiggin27 Comments

I was due to appear tomorrow before the Environment and Planning Committee’s inquiry into Nuclear Prohibition in Victoria, but I’ve just been advised that it’s been deferred until after the lockdown. I’d just finished writing a supplement to my earlier submission which concluded that there was no real support for the kind of ‘grand bargain’ I’d earlier proposed, combining a commitment to a rapid phase-out of coal with a removal of the prohibition on nuclear power. It’s over the fold.

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Masks (repost from a month ago)

John Quiggin15 Comments

Now that the World Health Organization has finally endorsed a recommendation for wearing masks in public, it’s time for Australia to do the same.

The most important case is that of public transport including air travel. Urban public transport is vital, but until we take the necessary steps on masks, we will be stuck with recommendations to avoid peak hour travel, guaranteeing a return to private cars and congestions

The airlines have been the biggest transporters of the pandemic and have continued to behave irresponsibly, packing planes as full as possible without any requirement for masks. It’s time for government to step in and order them to require masks as a condition of travel.

Update: Obviously, the Victorian outbreak has increased the urgency of this. The Rail, Tram and Bus union has called for compulsory masks on public transport, but we will probably need to go to a general requirement for masks in all public places