The 35-hour week is overdue[1]

Back in 1947, the standard Australian working week was reduced from 44 hours to 40. In 1983, 36 years later, the working week was reduced to 38 hours. That was more than 40 years ago, and there has been a lot of technological progress since then. It makes sense to take some of the benefits of that progress in the form of shorter working hours.

I’ve been an active supporter of the movement for a Four-Day week, but progress has been slow. Some of the moment has been dissipated by the availability, for most office workers, of the option of remote work. This option, backed up by the right to disconnect, has greatly improved work-life balance for many of us.

One notable result of remote work has been that lots of offices are just about empty on Fridays, and particularly on Friday afternoons. Office workers stay home, or go home early, then knock off when they’ve wrapped up their work for the week.

But remote work isn’t feasible for everyone. Around half of all jobs have to be done entirely, or mostly, in person. And, there hasn’t been any real adjustment in relative wages to compensate for this. This is a significant economic injustice.

But the shift away from Friday work at the office provides a way to address this injustice and deliver the long overdue 35 hour week at the same time. The idea would be to begin the weekend at Friday lunchtime, with most workplaces closing, and overtime rates applying for those that remained open.

The costs of this change would be modest in the case of office workers, given the unofficial advent of early weekends and the potential efficiency gains from the arrival of AI. For other workers, it would largely offset the decline in real wages since the arrival of the pandemic.

In political terms [3], advocacy of a 35 hour week{2] could be a winner for Labor. Improvements in working conditions, like the right to disconnect, have been among the few positive achievements of the Albanese government, but they’ve been too modest to overcome the general (and correct) impression of pointless drift.

In this context, it’s worth looking at Queensland Labor and Steven Miles’ introduction of 50 cent fares for public transport. This proposal was originally put up by the Greens and seemed way outside the realms of political possibility. But it proved so popular that it pulled Labor back from what seemed likely to be a wipeout, and forced the LNP into copying it. Labor still lost, but not nearly as badly as they might have.

As things stand, Labor is likely to end up with 30 per cent of the national vote, or even less, at the next federal election. Playing it safe, and talking about the “cost of living” is unlikely to change that. What we need, above all, is hope for a better future and a shorter working week will be a step in that direction

fn1. As I’ve mentioned in various posts, I’m not going to do any day-to-day political commentary for a while. Rather, I plan to focus on longer term issues including the climate transition and the future of work.

fn2. In practical terms, Labor could either seek to legislate a 35-hour week or commit to supporting it on a case-by-case basis at the Fair Work Commission. I’ll leave the details of that to Industrial Relations experts/

fn3. Slightly contradicting fn1 here, but I want to make the case that this is a practical idea in the political scene as we find it.

The end of US democracy: a flowchart

I spend a lot of time these days thinking about what I, and Australia as a nation, should do if the US ceases to be a democracy. But, it doesn’t seem as if lots of other people are thinking this way. One possibility is that people just don’t want to think about it. Another, though, is that I’ve overestimated the probability of this outcome.

To check on this, I set up a flowchart using a free online program called drawio. Here;s what I came up with

I hope it’s self-explanatory. The bold numbers next to the boxes are the probability of reaching that box. The numbers next to arrows coming out of decision nodes (diamonds) are the probability of that decision.

I also apologize in advance if there are any arithmetic errors – my degree in pure mathematics doesn’t insulate me against them.

If the US were remotely normal, every entry on the left-hand edge ought to be equal to 1. Harris should be a sure winner, Trump shouldn’t find any supporters for a coup, the MAGA Republicans in Congress should be unelectable and the moderate program proposed by Harris should be successful enough that Trumpism would be defeated forever.

But that’s not the case. There are two end points in which US democracy survives, with a total probability (excessively precise) of 0.46, and one where it ends, with a probability of 0.54. By replacing my probabilities at the decision nodes with your own, you can come up with your own numbers. Or you may feel that I’ve missed crucial pathways. I’d be interested in comments on either line.

Note: Any Thälmann-style comments (such as “After Trump, us” or “Dems are social fascists anyway”) will be blocked and deleted.

Deputy sheriff or imperial outpost ?

Via Peter Hartcher in the Nine papers, I learned the other day that Albanese snubbed President Prabowo of Indonesia to meet King Charles.

The immediate decision before the Albanese government was how to deal with two important heads of state asking for attention at almost exactly the same time. The prime minister had a long-standing invitation to the inauguration of the new president of Indonesia in Jakarta on Sunday, and a request for a visit by the British monarch to begin on the same weekend.

This ought to be have been a no-brainer. As PM of Australia, Albanese should have been able to set the dates for a visit from Charles in his capacity as King of Australia. And, as Hartcher points out, he could have fitted in both engagements with a flying visit to Jakarta. Instead, he sent Richard Marles.

Here’s where Hartcher’s piece gets interesting. He makes the point that, thanks to AUKUS, our relationship with the UK has gone from being a sentimental relic to a central strategic commitment. As Hartcher mentions, this brings to mind the longstanding struggle over whether Australia is really an Asian nation, a claim firmly denied by Malaysian PM Mahathir Mohammed. He doesn’t mention, though it would have amplified his point, the view expressed by George W. Bush and John Howard, that Australia should act as a US “deputy sheriff” in the region.

Australia as a royalist deputy sheriff

Hartcher ends optimistically, saying that since Prabowo (in his previous capacity as Defence Minister) signed a defence agreement with Marles, the attendance of the latter at a major ceremonial event would not be a problem.

So Australia finds itself in the fortunate position of being able to draw on both its history and its geography, forming intensified strategic arrangements with both Britain and Indonesia, simultaneously. Not torn in two directions, but strengthened by each.

This strikes me as massively over-optimistic. The governments of ASEAN countries, including Indonesia, have generally been negative about AUKUS, and popular feeling is almost certainly more hostile still. Ostentatious preference for our former Imperial overlords over our neighbours in the region is unlikely to be helpful.

Perhaps none of this would matter if AUKUS had a clear strategic rationale, with demonstrable benefits for the region as a whole. But for Morrison, it was much more a matter of loyalty to the Anglosphere than of any coherent analysis. Now that Albanese has followed suit, as part of what Hartcher describes as a “remedial post-Voice effort to persuade the electorate that he does, in fact, identify with the Australian mainstream”, the racial overtones of this exercise are undeniable.

AUKUS was bound to be an economic disaster. It looks likely to become a diplomatic and strategic disaster as well.

The death of the book, again

We’re in another round of concern about the “death of the book”, and, in particular, the claimed inability or unwillingness of young people to read full-length books. I’m not going to push too far on the argument that this complaint is ancient, but I can’t resist mentioning the response of my younger brother, who, when asked if he wanted a book for Christmas, answered “thanks, but I already have one”). That was around 50 years ago, and he went on to a very successful legal career.

Fifty years ago, the main competitors for books were TV and radio. Critics at the time decried the passive mode of consuming these broadcast media, compared to the active engagement required by reading. Now, in many respects, the complaint is the opposite. The various services available on the Internet are interactive, and engrossing, finely tuned to keep our attention.

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The US just lost a war and nobody noticed

Over the eight decades following the end of World War II, the US has taken part in dozens of land wars, large and small. The outcomes have ranged from comprehensive victory to humiliating defeat, but all have received extensive coverage. By contrast, the US Navy’s admission of defeat in its longest and most significant campaign in many decades, has received almost no attention. Yet the failure of attempts to reopen the Suez Canal to shipping has fundamental implications for the entire rationale of maintaining a navy.

Operation Prosperity Guardian was launched in December 2023, following a series of attacks on shipping undertaken by Houthi rebels. The US dispatched a carrier strike group, led by USS Dwight D. Eisenhower, and supported by ships from the Royal Navy and other European forces. Despite intensive bombardment of Houthi positions, attacks on shipping continued and traffic through the Suez canal fell by 70 per cent.

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In July, the Dwight D. Eisenhower quietly returned to returned to Norfolk, after what the Navy correctly described as “a historic nine-month combat deployment” but not historic in a good way. The strike force without achieving any of its goals. And then, in late August, came the official admission of  defeat As reported by Voice of America:

Vice Admiral George Wikoff, who heads the U.S. naval efforts in the Middle East said that not only have U.S. strikes and defensive efforts done little to change the Houthis’ behavior, it now appears unlikely the group will be swayed by military force.

“The solution is not going to come at the end of a weapon system,” Wikoff told an audience in Washington, speaking via video from U.S. 5th Fleet headquarters in Bahrain.

“We have certainly degraded their capability. There’s no doubt about that. We’ve degraded their ability,” he said. “However, have we stopped them? No.”

Why has this failure attracted so little attention? Why, for example, has it not even been mentioned by either side in the course of the Presidential election campaign? The answer, quite simply, is that the strategic rationale for the mission turned out to be spurious. “Vital shipping lanes” are not actually vital at all.

The closure of the Suez canal has, indeed imposed higher insurance costs on shippers using the canal, and has led much of the traffic to be diverted to the longer route around the Cape of Good Hope. But the overall impact on freight rates has been modest, and any effect on global economic activity has been too small to be observable. 

There shouldn’t have been any surprise here. Despite some hyperbolic claims at the time, the six-day blockage of the Canal in 2019 (due to the grounding of the Ever Given) caused only modest disruptions, with massive insurance claims being quietly settled for much smaller amounts

More notably, the Canal was closed for lengthy periods in the 20th century allowing studies of the economic impacts. These turned out to be very small except for India and Pakistan, both of which were then heavily dependent on trade with the UK and Europe.

And what is true of the Suez Canal is just as true of other “vital shipping routes”, such as the Straits of Malacca. It’s almost always better to take the long way around (for example through the Sunda straits or even through Australian waters in the Southern Ocean) than to fight a war to keep a short cut open.

On the other side of the coin, the failure of Russian attempts to block Ukraine’s exports of wheat and grain provides further lessons on the limits of naval power. Ukraine’s tiny navy was wiped out on the first day of the 2022 invasion. But Russia’s much-touted Black Sea Fleet has fared little better, being driven from its Sevastopol base to ports in Russia, out of reach of Ukrainian missiles. By sailing close to the western coast of the Black Sea, ships carrying Ukrainian grain can be protected by land-based defences, while sailing in waters too shallow to permit attack by submarines.

In summary, as a recent commentary put it, the failure of Prosperity Guardian poses an “existential threat” However, the threat is not to the world economy but to the US navy and, indeed, all the navies of the world. If keeping “vital trade routes” open is neither militarily feasible nor economically important,  a large part of the rationale for surface navies disappears.  

It’s unlikely that defeat by the Houthis will have much effect on perceptions of the US Navy in the short run. But with so many other demands on the defense budget, the rationale for maintaining a massive, but largely ineffectual, surface fleet, must eventually be questioned.

  • I haven’t discussed the broader horror of the various Middle East wars, which gave rise to the Houthi attacks. My long-standing view is that the US can do nothing useful and, beyond humanitarian aid, should do nothing to help any party. Please don’t derail discussion by talking about this.

Assessing Albanese: an annotated list

I’ve been consistently critical of the Labor party since Anthony Albanese became leader after Labor’s narrow but unexpected loss in 2019. It’s always easy to fall prey to confirmation bias in this kind of thing, making much of the bad and ignoring the good. To check my beliefs, I’m taking a widely circulated list of Labor’s claimed achievements, and giving my own responses. This is by no means a complete list of the governments achievements, and of course it doesn’t mention failures, but I’m confining myself to the list for now. Readers can judge whether I’m being fair.

Claims are in bold, my responses in italic

*Establishing National anti-corruption Commission

No significant prosecutions yet, decision not to pursue robodebt

*Cheaper child care

Genuine, but partially eroded by fee increases 

*Pay rise for aged care workers

A special case, amid real wage reductions for most workers

*Tripling the bulk billing incentive

Not sufficient to prevent a decline in bulk billing

*Single parent payment extended to age 14 (57,000 single carers will receive an extra $176.90 p/n)

Good. Reversal of change made by Howard and accelerated under Gillard

*$500 electricity rebate for all concession card holders

A once-off handout

*Savings on PBS subsidised meds

$12.50 per script Small but worthwhile

*60 Day dispensing halving the cost of medications

Overstated, but still worthwhile 

*Paid domestic violence carers leave

 Up to 10 days, small but worthwhile 

*Increase to Jobseeker and Rent Assistance (biggest increase to rent assistance in three decades)

Jobseeker increase of $20 above indexation (Morrison gave $50 increase). Still way below poverty line.  Rent assistance just kept pace with rising rents

*Cybersecurity developments

No idea what this is

*The Housing Australia Future Fund

A half-baked idea, still to produce any actual houses. Greens pressure drove much stronger action.

*Robodebt Royal Commission

No consequences for those responsible, no systemic reforms 

*180,000 fee free TAFE places

Good. Probably the most significant expenditure initiative of this government

*NDIS sustainability

These are cuts. Arguably necessary but misleadingly described 

*Largest increase ever for cancer nurses

Small but worthwhile

*Review into Australia’s visa system

If there is one thing this government does, it’s review

*Reopening trade to China

Overstated – China’s sanctions were largely symbolic and never affected our major export, iron ore

* Triple incentives for GPs

Repeated from above – not enough to stop decline in bulk billing

*58 Urgent Care Clinics

Worthwhile but small, and far too little to fix problems in emergency wards

* Fairer conditions for workers

Working conditions one of the positives for this government, but real wages have fallen

* Fixing a one-sided tax change

More hide than Jessie the Elephant. The one-sided tax change was their own election commitment, matching the LNP. Even after the fix, most middle income earners paid higher taxes than when the government was elected because of the scrapping of LMITO

* Two Surpluses (Two more than the LNP)

Who cares

* Aged care reforms

Marginal tweaks

* Halving of the inflation rate since coming into office.

If Labor wants credit for this, should be blamed for increase in unemployment rate and reduction in real wages

In their plaintive call for a return to the office, CEOs reveal how little they are needed

My latest in The Guardian

Announcements from major employers, including Amazon and Tabcorp, that workers will be required to return to the office five days a week have a familiar ring. There has been a steady flow of such directives. The Commonwealth Bank CEO, Matt Comyn, attracted a lot of attention with an announcement that workers would be required to attend the office for a minimum of 50% of the time, while the NSW public service was recently asked to return to the office at least three days a week.

But, like new year resolutions, these announcements are honoured more in the breach than the observance. The rate of remote work has barely changed since lockdowns ended three years ago. And many loudly trumpeted announcements have been quietly withdrawn. The CBA website has returned to a statement that attracts potential hires with the promise, “Our goal is to ensure the majority of our roles can be flexible so that our people can work where and how they choose.”

The minority of corporations that have managed to enforce full-time office attendance fall into two main categories. First, there are those, like Goldman Sachs, that are profitable enough to pay salaries that more than offset the cost and inconvenience of commuting to work, whether or not they gain extra productivity as a result. Second, there are companies like Grindr and Twitter (now X) that are looking for massive staff reductions and don’t care much whether the staff they lose are good or bad.

Typically, as in these two cases, such companies are engaged in the process Cory Doctorow has christened enshittification, changing the rules on their customers in an effort to squeeze as much as possible out of them before time runs out.

We might be tempted to dismiss these as isolated cases. But a recent KPMG survey found that 83% of CEOs expected a full return to the office within three years. Such a finding raises serious questions, not so much about remote work but about whether CEOs deserve the power they currently hold and the pay they currently receive.

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We or They

Like most academics these days, I spend a lot of time filling in online forms. Mostly, this is just an annoyance but occasionally I get something out of it. A recent survey in which the higher-ups tried to get an idea of how the workforce was feeling, asked the question “Do you think of the University as We or They?”.

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Chalmers is more in touch with the economy than the RBA

In today’s AFR. It’s paywalled and I don’t have access (I’ve been promised a PDF) so here’s what I submitted, which may not be final.

Six months ago, Federal Treasurer Jim Chalmers was planning legislation to remove his own power (never used, but always available until now) to over-ride decisions of the Reserve Bank. Now, he has not only decided to retain this power, but has openly criticised the Bank’s interest rate decisions as “smashing the economy”.

It’s easy enough to understand Chalmer’s criticism in terms of the political interests of a government seeking to survive and retain power. The government is focused, to the point of obsession, on the “cost of living”, a nebulous term that can best be interpreted as “the reduced purchasing power of household disposable income”. 

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Academic nepo babies

This study showing that US academic faculty members are 25 times more likely than Americans in general to have a parent with a PhD or Masters degree has attracted a lot of attention, and comments suggesting that this is unusual and unsatisfactory. But is it? For various reasons, I’ve interacted quite a bit with farmers, and most of them come from farm families. And historically it was very much the norm for men to follow their fathers’ trade and for women to follow their mothers in working at home.

So, I decided to look for some statistical evidence. I used Kagi’s AI Search, which, unlike lots of AI products is very useful, producing a report with links to (usually reliable) sources. That took me to a report by the Richmond Federal Reserve which had a table from a paper about political dynasties.

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