#MyDadHatedBritain …

John Quiggin44 Comments

… is trending on Twitter, thanks to the appalling UK Daily Mail, which ran a full length attack on the late Ralph Miliband, socialist academic and father of Opposition Leader Ed Miliband. On the strength of a scathing diary entry Miliband wrote as a 17-year old refugee, and his opposition to the Falklands War, the Mail claimed that Miliband “hated Britain”. Illustrating the proverb about glass houses, the attack only served to draw attention to the fact that whereas Miliband served in the Navy in World War II, the Mail backed Hitler and the Blackshirts throughout the 1930s, and has continued to push racist hatred ever since (unsurprisingly, it has seized on the spurious notion of “political correctness.” [1]

The Mail’s attack on Miliband has divided the UK right into three groups (google x+Mail+miliband)

* Those who have condemned this appalling and dishonest slur, including Michael Heseltine and Nick Clegg
* Those who have stuck to a weaselly line scripted by Tory minders that “of course Miliband should defend his father” such as David Cameron, William Hague and Boris Johnson
* Those who have backed the Mail all the way, notably including James Delingpole, Rod Liddle and Michael Gove[2]

It’s notable that all those I’ve listed in the third group are prominent climate delusionists. As we’ve seen again recently, the Mail is the source for many of the lies about climate change that are reproduced in the Murdoch press[3]. This is, as they say, no coincidence. Climate delusionism isn’t a mistaken belief about the world, it’s an expression of tribal hatred, all the more effective because most of those who push it know, at some level, that their arguments are false. Putting forth such arguments is an expression of tribal solidarity, like asserting that Obama was born in Kenya. Naturally, the tribal haters love the kind of stuff that the Mail dishes out.

Hopes are often disappointed, but it does seem as if the global party of stupid is starting to reap the whirlwind it has sown. The continued publication of delusional nonsense has produced a rightwing base that embraces delusional strategies like the US shutdown, or attacks on a man’s dead father, in the belief that everyone else will share their positive reaction.

fn1. It’s also being claimed that the father of Mail editor Paul Dacre didn’t serve, but this (sauce for the gander) claim hasn’t been verified AFAIK. Another tidbit is that the Mail was the target of Churchill’s Stanley Baldwin’s famous jibe that it sought “power without responsibility – the prerogative of the harlot throughout the ages”.
fn2. Gove hasn’t stated this, but he has tried to stop schools teaching anything about climate change. He has the additional motive that his wife has a highly paid job with the Mail.
fn3. It’s a striking commentary on the weakness of people like Bolt and Oz “environment reporter” Graeme Lloyd that, as well as being incapable of telling the truth, they also seem to be unable to come up with original lies.

A debate resolved

John Quiggin13 Comments

As regular readers will know, I’ve had a long debate[1] with the Productivity Commission on the sources of the supposed ‘productivity surge’ of the 1990s, which, I’ve suggested was primarily the result of increased work intensity and unmeasured increases in working hours at a time of high job insecurity. I was looking back at some of these discussions when Google turned up a Hansard transcript of hearings of the Senate Standing Committee on Economics in 2012. It turns out that the Commission now agrees with me, and has done so for some time. To quote the Commission’s expert witness, Dr Jenny Gordon[2]

There was a very big debate with the former branch head, Dean Parham, who did a lot of work on productivity. He looked at the effect of the reforms and ICT, which is one of the points that Professor Quiggin made, in trying to explain the productivity boom of the 1990s in terms of what actually happened. Professor Quiggin’s main point is that work intensity is important, which is quite hard to measure but, in fact, is a major source of productivity growth. If people work smarter and work harder while they are at work, that will improve productivity. So it is cutting the fat of organisations, I suppose you could call it. The other point is that people are working longer hours. But the way the productivity measurement is done takes account of the hours of work. That is actually data collected through ABS surveys of individuals reporting the hours that they work. So we could measures hours properly. It is hard to measure work intensity. It does appear and it is a source of productivity growth … So we were in full agreement with that. So the debate was settled back in the mid-2000s.

It’s good that we are in agreement this far. I would add though that productivity growth achieved by working harder does not, in general, improve economic welfare. As for “working smarter”, if this is a reference to technological progress, it’s fine. In my experience, however, it’s usually management-speak for “do the same job with less resources, and work out for yourself how to do it”.

More importantly, the key implication of my analysis is that, to achieve sustainable improvements in living standards, we ought to be focusing on getting the macro issues right rather than lining up for another round of microeconomic reform. Increases in work intensity don’t last, as experience since the 1990s has shown. Genuine long-term improvements in the productivity of the economy can be gained only through educating the workforce to take account of improvements in technology (only a small proportion of which are generated domestically) and through macroeconomic and labour market policies that avoid wasting human potential through unemployment and other forms of social exclusion.

fn1. In the same hearing I cite here, PC Chairman Gary Banks described it as a ‘rich’ and ‘ongoing’ dialogue. I’ve certainly learned a lot from it, and I hope the same for the Commission and any onlookers patient enough to follow it.
fn2. Not particularly germane, but interesting to this post is that Dr Gordon is married to Brian Schmidt, winner of the 2011 Nobel Prize for Physics

Buying back toll roads

John Quiggin91 Comments

Reports that the NSW Liberal government is planning to buy back the Cross-City tunnel, following the bankruptcy of the second set of private owners mark an important step in the failure of the private infrastructure program launched in the 1980s with the Sydney Harbour Tunnel[1].

The interesting failure here is not the bankruptcy of the operators but the recognition that the whole idea of imposing tolls on a road designed to divert traffic from the city is nonsense. The most sensible plan, after buying the tunnel is to remove the toll and free road space in the CBD for a variety of initiatives including light rail and cycleways.

Unfortunately, the lessons have not been learned. The new WestConnex project in Sydney is to be a largely private tollway. The proposed East-West link in Melbourne is also a toll road but “is being procured as an Availability Public Private Partnership (PPP), with the State initially retaining tolling and traffic risk.” Whether or not these projects are economically and socially justified, there is no doubt that the use of toll funding will greatly reduce the benefits, leaving more traffic on congested, but untolled, roads.

fn1. A sham deal, which was eventually reconstructed as a publicly owned tunnel with a private operating contract.