It is a holiday in Australia today and the sun is shining and so this blog will be very short. There are so many issues going on at present that it is hard to know which one to prioritise. Anyway …

Yes, and more. There was an article in the EU Observer this week (April 3, 2012) – EU ‘surprised’ by Portugal’s unemployment rate – which I had to re-read a few times to check that I was actually reading the words correctly. The dialogue presented was so shocking that it raises fundamental questions about how one is interact with the economics debate. Then I read some more articles this week which investigated why mainstream economics retains its dominance in the face of its catastrophic failure to explain anything of importance to humanity. Closed minds are very resistant to change especially when socio-pathological dimensions are present. Which led me to investigate Mayan cosmology after being accused of being a practitioner of the art! Overall, another week in the life of a Modern Monetary Theorist (MMTist) – par for the course really.

The Australian Treasurer wrote an Op Ed in the Melbourne Age today (April 4, 2012) – Return to surplus is the right move at the right time – trying to defend his obsessive pursuit of a budget surplus in the next financial year. It was in direct response to an article yesterday (April 3, 2012) from the Melbourne Age economics editor Tim Colebatch – Budget cuts will bring on recession. Tim Colebatch’s commentary was a followup to his article last week (March 30, 2012) – Swan’s foolish surplus fetish – which I considered in this blog – A seriously reckless act. The pressure is mounting on the Government to abandon their reckless pursuit of the surplus. Even the conservative State premiers have expressed concern (States warn Wayne Swan over budget cuts. It is clear that the forecasts that the surplus were based on have no hope of being realised over the relevant horizon. The Australian economy is performing well below what the Treasury expected and deteriorating. The surplus obsession is based on these overly optimistic forecasts. The Government would be advised to assume the worst case scenario at present and calibrate its May Budget accordingly, rather than persist with the myth that the Treasury has it right.

I read this morning that there were riots in Spain overnight – Arrests, clashes amid general strike in Spain. I thought that, ultimately, this may be the only way that the neo-liberal economic madness that has beset the world, amidst the worst economic crisis in 80 odd years, will be curtailed. By people power. It is a pity that we have allowed the political class to move so far beyond what is required to introduce policies that enhance the well-being of the citizens. How that happened is a separate question which I hope the political scientists and other experts shed some light on soon. It seems totally bizarre that popular support is given to political parties that introduce policies which undermine the prosperity of the supporters. In Australia, the Treasurer delivered a speech yesterday that confirms that even though we are a long way from the European maelstrom, our intellectual underpinnings are the same. Our Government is currently about to walk the plank because it is engaging in a “seriously reckless” act – trying to cut public spending by around 2.6 per cent of GDP when the economy is already in decline.

I have had very little time today (worse than usual). I gave a 3 hour lecture today on Modern Monetary Theory (MMT) and unemployment to a final-year class in the Social Work program at the University of Newcastle. It was interesting trying to work out how to explain all these concepts, which are intrinsically hard, to a group that has no background in economics. Just the language we use is not universal and so I spent quite a bit of time working out how to communicate. Anyway, the following blog is short as a consequence. But knowing I didn’t have much time, and the blog I am thinking about will require some more digging, I decided to take the chance today to write an Op Ed that was requested from a newspaper in Buenos Aires and which I am late in delivering. They only wanted 5,000 odd characters so it forced me to be disciplined. It is about fiscal austerity and will be translated into Spanish for their readers.