Picking winners, industry policy and the Defence White Paper

Way back in the 1980s and 90s when I was a Labor “apparatchik” and then for a short time a local politician in the Northern Territory, the Opposition of which I was a part was for a time led by Brian Ede. He married Anne Walsh a daughter of arch neoliberal Federal Labor Minister for Finance Senator Peter Walsh. Current federal Labor frontbencher Gary Gray, who was a NT Labor staffer in the 80s, ended up marrying another Walsh daughter Deborah.

In part as a result of those c0nnections, the NT Labor Parliamentary wing was a hotbed of purist (some would say extreme) neoliberal economic dogma.  Low taxes, balanced budgets, no industry assistance, no “picking winners” and so forth. At least it was a useful antidote to the Country Liberal government’s approach at the time, which could most kindly be described as crooked crony mercantilism.  It’s an approach to which some would say the current Giles government has returned.

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Posted in Economics and public policy, Politics - national | 4 Comments

There’s never been a more exciting time to be Captain Shorten

What strange times we live in! The Red Star Line’s passenger cruise freighter SS Labor, despite a seemingly lacklustre captain with a mutinous history, is sailing full steam ahead for port carrying an impressive cargo of solid policies and fiscal measures to fund them.

Meanwhile, the Blue Star Line’s SS Coalition, despite a patrician skipper imagined by many to be a master mariner, remains becalmed with an almost complete absence of policy cargo, holed beneath the waterline by a “friendly fire” GST torpedo and threatened by a potentially mutinous faction of his own crew led by the bloodthirsty brigand and erstwhile skipper Fletcher Abbott.

How did this happen?

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Posted in Politics - national | 3 Comments

Dennis Jensen and the ‘noble savage’ – a constructive perspective

Federal Liberal backbencher Dr Dennis Jensen is a right wing MP with views not unlike those of his colleague Corey Bernardi.  He “distinguished” himself this week in Parliament with a diatribe about Indigenous communities supposedly living a ‘noble savage’ lifestyle:

“I put it to the members of this place that the taxpayers of Australia should not be funding lifestyle choices. Yes, I agree with the former Prime Minister, the member for Warringah, when he refers to Indigenous Australians’ choice to live in remote communities as ‘a lifestyle choice’,” he said.

“In essence, if the ‘noble savage’ lifestyle, a la Jean-Jacques Rousseau, the same one often eulogised, is true, then there is nothing stopping any Indigenous men or women from pursuing such an existence on their own. Just do not expect the taxpayers to subsidise it. My contention is that the ideal of the noble savage may be less sanguine and altogether more Hobbesian: ‘nasty, brutish and short’.”

The evident racist tone of Jensen’s contribution is unfortunate, because it masks a very real and important issue in Indigenous affairs.  There are very few if any remote communities that could meaningfully be described as living a  ‘noble savage’ lifestyle.  What is undeniably true, however, is that most adults in most communities live lives of idleness, boredom and welfare dependency, features which play an important role in high rates of crime, violence and a range of other toxically dysfunctional behaviours.  Numerous commentators including Noel Pearson have stressed the importance of overcoming welfare dependency.

Jensen’s “solution” appears to be to defund remote communities, effectively forcing their residents to decamp to Australia’s towns and cities.  However his vision is historically blind to an almost breathtaking extent.  This is precisely what occurred throughout Australia over the many decades leading up to the 1967 referendum. Aboriginal people were forced off their traditional lands by pastoralists and others, and ended up in fringe camps on the edges of most cities and country towns.  The suffering and disadvantage this phenomenon generated is well-documented and undisputed.  Moreover, many non-Indigenous Australians, especially those who identify with the views of politicians like Dr Jensen, would not welcome (for largely selfish reasons) the re-emergence of extensive Aboriginal fringe camps adjacent to mainstream towns and cities.

Fortunately I think there are much more constructive and market-based alternatives that would over time result in a sustainable Aboriginal economic base without forcing or engineering the abandonment of remote communities.  Over the fold is an extensive extract from a long article on this subject that I posted here at Troppo back in 2014.  It didn’t generate much discussion at the time, but it’s worth continuing to raise these issues because they are important.

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Posted in Economics and public policy, Politics - national, Race and indigenous | 9 Comments

My comments on the draft of the Shergold Review

Peter Shergold’s report on learning from mistakes is out. It advises on how to avoid the mistakes of the Pink Batts fiasco (He was asked to do this by a government that, pretty obviously, wasn’t the slightest bit interested in learning from its or anyone else’s mistakes. I expect we have a much better one now, but we won’t really know until, as seems probable, it wins the next election.) Anyway the art of the courtier is making some kind of silk purse out of this sow’s ear so I wish Peter – for whom I have a high regard – well.

Anyway, as part of the preparation for the report I spoke to Peter and his team and was sent some extracts of the draft of the report for peer review. I thought I’d share my feedback with readers (which I’ve slightly edited for clarity). I only saw drafts of the reports conclusions and supporting text on “Opening up the APS” and “Embracing Adaptive Government” which is therefore where my comments focus, though the report’s headline recommendations range much wider.

I’ve not read the final report yet so readers may beat me to understanding the extent to which my comments were taken on board. (Usually comments lead to fairly marginal changes in my experience. Too much water under the bridge, too much work hustling consensus out of a team, and the difficulty of girding one’s loins for another assault on the summit after the draft.) Continue reading

Posted in Economics and public policy, Education, Innovation | 9 Comments

Pssst! Malcolm. Steal Labor’s tax policies and slash company tax

I don’t understand why Prime Minister Turnbull and Treasurer ScoMo are busily demonising Labor’s entirely sensible announced policies in relation to negative gearing and Capital Gains Tax for residential rental properties.  I can only assume that the politician’s instinct to condemn just about everything an opponent proposes has proven irresistible.

They probably also imagine an effective scare campaign to convince suburban mums and dads that Bill Shorten is attacking the value of the family home. That might well work to an extent, but it would be a pyrrhic victory.  As things currently stand, abandoning their plans to jack up the GST to pay for income tax cuts has left the Coalition without any tax policies at all, and just as importantly without any deficit reduction policy either.

If they could only resist that kneejerk impulse to attack an opponent’s policies at every opportunity, surely Turnbull and Morrison would recognise an opportunity to use announced Opposition policies as political cover for implementing genuinely liberal pro-growth policies that would certainly differentiate the Coalition decisively from Labor.

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Posted in Politics - national | 9 Comments

Legal shockwaves following the dissection of the oath.

Following Nick and Rex’s tongue-in-cheek deconstruction of the ‘concept’ and ‘gravitational waves’, news has just come in that the oath witnesses take in Australia has been sliced into its fundamental constituents: perjury, utopia, and blasphemy.

‘It was quite easy to see once you took the oath literally’ one of the anonymous legal scholars said, ‘just read closely’.

“I swear by Almighty God that the evidence I shall give will be the truth, the whole truth and nothing but the truth.”

‘It’s the use of the utopian words “truth” and “whole truth” that gives the game away’, the researchers claimed. ‘You see, the notion of truth is absolute, ie leaving zero doubt whatsoever. So any belief, memory, opinion, or even perception is uncertain and thus neither the truth nor the “whole truth”. Only mathematical and other tautological statements are undoubtedly true, so a person is in effect swearing to recite all tautological statements as his or her evidence. Everyone who has ever taken the oath has perjured themselves’.

The bewildered legal profession was shocked after this revelation, though the Chief Judge did publicly ask where the blasphemy bit got in. ‘Easy’, the up-beat researchers said, ‘Once you realise that the oath is a promise to deliver the whole of the impossible, much like the promise to hand over all of the Holy Grails, then by implication one has lied to god and taken god to be a fool. One has uttered a falsehood to god, dooming ones’ eternal soul’.

Because much research clearly needs to be done following the shockwaves of this deconstruction, the stunning discovery that perjury, utopia, and blasphemy are at the heart of the legal system has sent grant-agencies scurrying for their cheque books. The pope has reportedly considered calling off meeting the Russian Orthodox Patriarch, postponing a reconciliation of a thousand years of enmity, in order to consider a papal amnesty for billions of witnesses over the ages.

‘This is an exiting decade for us’, the unknown researchers claimed, ‘who knows what crazy arguments and discoveries await?’

Posted in bubble, Competitions, Cultural Critique, Geeky Musings, Libertarian Musings | 5 Comments

Concept Split: Shockwaves!!!

If Rex can give us his guide to Gravitational Waves – a very impressive performance I have to say, then I can dust off an old document from my days at the ANU law school – in the late 1980s.

Concept Split: Shockwaves

Shock waves spread from the policy making community through to world stock markets today as two senior researchers from the ANU philosophy (Special Corporate Projects – Rhetoric) Division claimed to have split the concept.

“The twentieth century began with the splitting of the atom. How appropriate that it should end with the splitting of the concept” said one of the elated researchers.

More Work to do

“This is the culmination of many years effort for us but there is lots more work to do. It is only the beginning” said the other ebullient researcher who declined “at this early stage” to give his/her name.

After five years fronting funding authorities and incurring the hostility of senior colleagues the researchers’ persistence appears to have paid off.

We played a hunch

“We played a hunch” said one researcher. Continue reading

Posted in Health, History, Humour, Science, Space | 3 Comments