En Passant

Absolute rent has caused great debate and controversy among left wing writers. Is it actually two concepts – monopoly rent and absolute rent, or just absolute rent arising from the low level of say capital investment in agriculture? [12] I adopt David Harvey’s approach, of distinguishing between absolute rent and monopoly rent. [13] Others, like Faysil Yachir, argue that despite a very high OCC in the mining industry there can still be absolute rent because of monopoly.[14] The two, as I have outlined above are different, but related, a matter which I hope becomes clearer when we work through the differences between State and Territory absolute rents such as royalties and Commonwealth monopoly rents in the form of rent taxes.

The aim of this paper is to give readers an introduction to the Asian Development Model and use that to examine mining reforms in Indonesia. The paper argues that there is an Asian Development Model and that the Indonesian mining reforms, in particular the requirement over time for 51 percent Indonesian ownership and the ban on the export of unprocessed resources, represent an attempt by the Indonesian state to speed up industrialisation in the country and spread more of the benefits from mining to ordinary citizens in the recently democratised and politically decentralised country. In attempting to show strength however, the Indonesian state is exposing some weakness. The impact on jobs, revenue and production has been adverse although Foreign Direct Investment has increased. This latter may be because it is foreign multinational mining companies who are better placed than local mining enterprises to build smelters. The success of industrialising mining might be at the expense of local capital. In other words state intervention does not always produce all of the desired outcomes. It is not a panacea.

Nothing better illustrates the nature of Western Australia’s mining boom than the respective fortunes of mine owners and First Nations people writes Lian Jenvey in Red Flag.

In the same week that Gina Rinehart secured a multi-billion dollar loan to begin operations at Roy Hill, the world’s biggest iron ore mine, Swan Valley Nyungar community housing was bulldozed to rubble.

The resources boom has been an El Dorado for big and dirty capitalism. Now that the capitalists see the writing on the wall, they are preparing to launch another round of attacks. Our side got nothing from the boom. We sure as hell shouldn’t have to pay for the bust.

Martin Ferguson’s legacy, apart from Gina Rinehart’s obscene wealth, is a trade union movement not yet defeated but on its knees and a Labor Party heading for a massive defeat in September.

The money is there. So why not start all over again? I have a suggestion. How about a 40% super profits tax applying to all resources? Oh…The ghost of Kevin Rudd ensures that won’t happen.

And while we are at it, why not a super profits tax on all super profits, not just those in the resource sector. The Big 4 banks come to mind.

The best way to remember the murdered workers would be to build stronger opposition to the mine bosses—and to the ANC leaders who back them.

When the Sun kings of profit get challenged the ideology of their empires is threatened and the nudity of their worth stands for all ordinary working people to see. So having not lived in the real world of work, of labour, they do what they always do – invent a self serving story.

If the economy worsens or the Greens actually begin to exercise some power instead of being Democrats in waiting, what Palmer said about them will be a small taste of much worse to come as the rich maggots squirm and worm to protect their rotting patches.

Nationalise the mines under workers’ control.

$14 billion for the mining bosses, nothing for those in need; it shows you where Labor’s priorities lie and who they rule for.