Section: Economics
There are more than 200 results, only the first 200 are displayed here.
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ECONOMICS
- David James
- 10 October 2016
2 Comments
The strategy of the Big Four banks' appearance in parliament was clear enough. Blame the whole thing on a need to improve impersonal 'processes', imply that there have been a few bad apples but overall things are fine, and promise to do better in the future. The greatest challenge was probably to hide the smirks. A royal commission is being held up as an alternative, and no doubt it would be more effective. But a royal commission would not address the main issue.
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ECONOMICS
- Andrew Hamilton
- 20 September 2016
4 Comments
It is a welcome change to see budgets spoken of in moral terms. The government recently insisted on a moral responsibility to future generations to fix the deficit. And the Australian Catholic bishops welcomed on moral grounds the compromise that saw dropped from the budget measures which would further disadvantage vulnerable people. The difference was that the government's argument was focused on the budget, whereas the bishops' focused on particular groups of people.
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ECONOMICS
- David James
- 13 September 2016
18 Comments
The argument that putting government operations into private hands ensures that things will run better and society will benefit is not merely a stretch; it is in many respects patently false. The argument is based on the claim that the market always produces superior price signals. Yet one area where private enterprise definitely fails is long term stability. If there is an expectation that a privatised service should last in the long term, and usually there is, then selling it to business is a bad choice.
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ECONOMICS
Had Greece decided to exit the EU last year the consequences would have been far greater than Brexit, because Greece uses the euro, whereas Britain has the pound. British interest rates are not set in Brussels, they are set by the Bank of England. And it has an independent fiscal and budgetary system, to the extent that it is possible. The British government has been imposing 'austerity' measures because it subscribes to neoliberal orthodoxy, not because it is being told to do so by Brussels or Germany.
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ECONOMICS
There is little doubt that the means to dramatically reduce the amount of pollution produced by developed economies is already theoretically available. It is perfectly possible to redesign industrial systems so that they do not pollute and do not consume finite resources at a rate that is unsustainable. But it requires a radical shift - and the biggest barrier to that shift occurring, the financial markets, is barely even mentioned in discussions of the challenge.
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ECONOMICS
- Kate Galloway
- 28 April 2016
14 Comments
Historically, having a largely home-owning population has ensured both the social benefit of housing, and an economic benefit through enforced saving with long-term growth. In contrast, the negative gearing push splits the cultural and economic meaning of home ownership, because it focuses on investment. Negative gearing promotes property ownership but not home ownership. Thus the social benefits of home ownership that we have come to expect give way to bare economic indicators.
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ECONOMICS
- David James
- 18 April 2016
11 Comments
Three finance-related events are currently gaining great attention in the media. One is the so-called Panama Papers. Another is the proposal to have a royal commission into the banks. And a third is the furore over the unaffordability of homes and the debate over negative gearing. On the surface they would seem to be quite separate issues. But all three issues demonstrate yet again that banks are, if not the most malign organisations on the planet, then certainly among the most dangerous.
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ECONOMICS
- David James
- 26 February 2016
8 Comments
It is not often that federal political parties exhibit courage. Labor's decision to change the rules on negative gearing is a rare instance. It targets what is most dangerous and unfair in our financial system. Expect howls of protests from powerful lobby groups if it ever looks like becoming policy. But these changes alone won't be enough to deal with the ills of the financial system. While they are designed to target the bias away from productive investment, they won't remove the attraction towards property.
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ECONOMICS
- David James
- 19 January 2016
11 Comments
Low interest rates tend to change the understanding of risk; having high debt seems to be less of a problem because the cost of servicing it is lower. This cavalier attitude has been especially evident in Australian households, which have racked up more debt relative to the size of the economy than any other country in the world. The massive appetite for debt has been replicated across the globe. The world may have survived the era of casino money - just - but it is now facing another crisis.
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ECONOMICS
- David James
- 15 December 2015
3 Comments
In the early 1990s, America, Europe and Japan accounted for about 90 per cent of world GDP. Now, they account for less than half. The BRICs and other developing nations have grown steadily (in China's case spectacularly) while Europe has stagnated and America has sputtered at best. Recent developments in the geopolitics of fossil fuels and in finance confirm the perception that the rise of China and the developing world spells the end of US global hegemony. Against this backdrop, the narrative of the West has grown increasingly incoherent.
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ECONOMICS
- David James
- 19 October 2015
7 Comments
For those who believe, as G. K. Chesterton quipped, that the popular press is 'a conspiracy of a very few millionaires', the decline of mainstream media may not seem such a great loss. But the thinning of journalistic ranks is not good for democracy. In the world of business, old habits usually do not die at all — it is rather the businesses themselves that experience terminal decline. What journalism that does emerge from the ashes of the existing mainstream media businesses will be very different.
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ECONOMICS
- David James
- 14 September 2015
1 Comment
The recent ructions in the Chinese stock market set off great consternation in global financial markets, but for the most part this was a display of ignorance. One of the reasons China’s influence on global markets has been so beneficial, since at least 2007, is that its economy and financial markets are so different.
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