Michelle Grattan from The Conversation puts it best.
Articles from A Senex View
Originally posted at Australian Real Progressives
By now you have probably noticed Australian Real Progressives has a rather heavy focus on jobs. This is because 2 million Australians are looking for work or more hours.
“So far as it can humanly contrive, never again will the dole queues be seen in this country. Never again will competent workmen stand idle for months and years while limitless work remains to be done. Never again will young men drift hopelessly from town to town and from State to State, searching for the jobs which, in all this wide land, did not exist for them.”
Ben Chifley, 1949.
Andrew Leigh is an incredibly nice guy and I used to follow his blog before he entered parliament. He had many very useful statistics on that blog which I believe you can find at PreviousLeigh (see a sense of humour too).
Unfortunately as a practising economist he has zero understanding of Modern Monetary Theory (MMT).
In my previous post I outlined why jobs don’t come from rich people: capitalism runs on spending (sales), not savings. Job opportunities appear naturally when businesses forecast sales growth and expand output accordingly (and similarly disappear under reverse conditions). When viewing the economy as a whole, we can observe that private sector investment responds to rising incomes and spending as entrepreneurs expand output to match market demand and banks have confidence lending.
One would be forgiven for believing that all good economic outcomes must flow down from the wealthy to the masses, given how much of our tax code has been designed for such an effect. Capital gains tax rates, superannuation tax rates, and negative gearing are just a few of the ways our federal tax system has been tilted to enable the wealthy to accumulate ever more wealth by retaining a high percentage of their financial earnings after taxes. And politicians keep dishing out the favours.
The calls for cutting the federal government’s budget and perhaps even balancing it have continued and are likely to grow louder during this political season. Don’t listen to them unless you want to see a fall in your net financial assets! Government deficits, by definition, create private sector wealth, while surpluses drain it. It’s simple accounting.
There aren’t many groups as pilloried as dole bludgers and welfare cheats so when the Turnbull Government announced a major crackdown in 2016 most Australians were happy to see it. That move has relied heavily on automation to pursue suspected rorters.“