Welcome to Eureka Street
Looking for thought provoking articles?Subscribe to Eureka Street and join the conversation.
Passwords must be at least 8 characters, contain upper and lower case letters, and a numeric value.
Eureka Street uses the Stripe payment gateway to process payments. The terms and conditions upon which Stripe processes payments and their privacy policy are available here.
Please note: The 40-day free-trial subscription is a limited time offer and expires 31/3/24. Subscribers will have 40 days of free access to Eureka Street content from the date they subscribe. You can cancel your subscription within that 40-day period without charge. After the 40-day free trial subscription period is over, you will be debited the $90 annual subscription amount. Our terms and conditions of membership still apply.
Adam Smith wrote 'no society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable'. Poverty and inequality lead to non-participation in work and inhibit social mobility, which negatively affects economic growth. The concentration of economic power is bad for democracy.
A proposal to take decisions around welfare payments out of politicians' hands is the best way forward. If the major parties are going to put supporting the most vulnerable in the 'too hard' basket, let an independent commission determine the rates at which various welfare payments can allow people to live a dignified life.
The Turnbull government holds the view that tax relief for companies and middle-income earners is necessary to improve the economic prosperity of Australia, offering a financial hand up to households struggling to pay their bills. For those on Newstart, though, those same increased costs of living are being all but ignored.
'We need to recommit to work for all those who are able and willing. We need to recommit to social assistance for all those who are not able. We need to ensure that a life of frugal dignity is within the grasp of all citizens.' 2017 Rerum Novarum Oration by Fr Frank Brennan SJ
Increasing the feelings of shame of being unemployed and restricting freedoms doesn't create more jobs and only grinds down a vulnerable group who are subsisting on a meagre payment. But the government is yet to show any meaningful concern over the significant risks of these draconian welfare policies.
In an age of 'budget repair', social policy risks becoming just a sidebar to economic policy which is a contest of ideas about how best to grow the size of the pie thereby providing a slice for 'the deserving poor' without having to redistribute too much of the pie, while 'the undeserving poor' drop off the edge as they would have anyway. For those of us schooled in Catholic social teaching, the so-called 'undeserving poor' are the litmus test of our commitment to the human dignity of all persons.
The Fair Work Commission decision on penalty rates removes any doubt that young people might have still had about their place in the economic order. The four-yearly review of awards in hospitality, fast food, retail and pharmacy found that Sunday penalty rates 'do not achieve the modern awards objective, as they do not provide a fair and relevant minimum safety net'. But whose safety net? Unfair to whom? These industries are already notorious for exploiting young workers.
A fair minimum wage has to be fair to workers with family responsibilities, many of whom are currently working poor and living in poverty. But in its 2014 Annual Wage Review decision, the Fair Work Commission decided that the 'appropriate reference household for the purposes of setting minimum wages is the single person household'. This was the first time in more than a century of minimum wage setting that an industrial tribunal has decided that minimum wages should exclude the needs of the low paid with families.
Although the age pension will cost about $49 billion in 2017-18, it is means tested. In contrast, superannuation concessions are heavily biased in favour of high income earners. Both sides of politics pander to the wealthy and the cosseted finance sector, which want certainty that nothing will stand in the way of their super bonanza.
The Government's McClure interim welfare report is predicated on the big lie that welfare is the problem and the market is the solution. The long wait of the excluded for some of the wealth and resources, for some of the hope to trickle down, is one of the most audacious con jobs in modern history. It is not misfortune. It is not a mistake. It is not the fault of the excluded. It is an attack against ordinary people who are made to bear the burden of inequality.
French economist Thomas Piketty argues that current conditions have set us on track for a return to 19th century-levels of inequality. The Commission of Audit proposals suggest that the auditors and the Government are keen to expedite this neo-Dickensian era. It's all done in the name of 'incentives' toward 'personal responsibility', but this cannot remain coherent in the face of those who will be hit hard by the proposed suite of cuts and co-payments.
The budget problems are not caused by Newstart or disability pensions, which have been declining as a proportion of economic activity. Had the Howard Government not been so generous with its tax cuts to upper and middle income groups, there would today be no budget deficit.
1-12 out of 24 results.