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The 2014 Federal Budget has created a new hierarchy of virtue in Australian society, with well off investors deemed to be good and the disadvantaged bad. It is not so much class war as a war between capital and the rest of society. Those wielding significant capital are useful, while those who can save little, and have little to invest, are considered a burden.
With the Australian economy in disarray, the Abbott Government is showing keen interest in New Zealand's projected unusually high growth. But NZ's status as a rock star economy is in question from commentators who say it has never recovered from major policy shifts 30 years ago. In particular its sexy image on the global business stage does not translate to a better life for those on low incomes, particularly women and children.
Kevin Rudd says we need a 'new politics' or a 'new way'. Tony Abbott says we'll only get a new way by electing a new government. What is missing in both statements is the recognition that what we actually need is a new kind of economic democracy: a reconfiguration of our economic prioritising away from individualism towards the common good, and towards the participation of all rather than the exclusion of many.
No patriotic Australian wants to see Qantas go out of business. But the principles of both good business and social inclusion demand the government not thwart competition from Virgin and its cashed up foreign shareholders. In two decades, competition has lowered fares and made it possible for less privileged Australians to fly.
Following the abuse received by Adam Goodes from a teenage spectator in the AFL's Indigenous round, and the subsequent remarks made by Eddie McGuire, the country became embroiled in a debate about racism in modern Australia. Meanwhile, the Northern Territory introduced its Mandatory Alcohol Treatment Bill which, if passed, will see more Aboriginal people incarcerated. We were too busy describing the modern face of racism to notice.
It is hard to imagine that those living in disadvantaged communities would find great personal interest in the things that matter at election time. Interest rates and mortgages, rates of company tax and paid maternity leave are issues for the advantaged. They are problems of managing income that those without it might like to have.
A constitutional challenge in PNG to the resettlement agreement could quickly destroy any disincentive value as far as people smugglers are concerned. Under the country's constitution, foreigners may not be detained unless they have broken the law in entering the country. Since the asylum seekers are being sent there against their will they cannot be held to have entered illegally.
If I was a long-term unemployed person, how would I answer the question, 'What has the ALP done for me?' 'Lots, and not much.' The Gillard Government's commitment to developing workforce skills suggests it values decent work, not just jobs, but in positing productivity as the path to prosperity it seems more Reagan than Keynes.
The 2013 Federal Budget is framed around a national disability insurance scheme, education reform, and welfare to work focused welfare spending. The jewel in the crown has to be DisabilityCare, which will make a significant difference in the daily lives of nearly half a million Australians.
Labor is struggling with a $12 billion write down in anticipated revenue for 2012-13 after Treasury bungled the forecasts. It could cut back on government assistance to those who can fend for themselves. But it has chosen to penalise the poor, with those on the parenting payment being switched to the lower Newstart.
Australia's business lobbies are fond of complaining that company tax is too high. Lower it, they argue, and the economy would become more dynamic and everyone would benefit. The reality isn't that simple. The combination of Australia's dividend imputation system and the compulsory super scheme greatly benefit Australia's big companies.
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