The Committee for Economic Development in Australia (CEDA), which is usually a pro-business, neo-liberal leaning organisation, released a major report on April 21, 2015 – Addressing entrenched disadvantage in Australia. It was accompanied by a Press Release- CEDA Report: More than a million Aussies living in poverty a disgrace – and an Op Ed article – Australia must do more to address entrenched disadvantage and a – Blog post. They clearly wanted the message to get out! Australians like to think we live in a fair society. The CEDA Report should shake us out of our ‘egalitarian’ dreamland. It is a shocking indictment of an income and wealth rich society that such a high percentage of our population have no hope of prosperity or even a modicum of security. It is an indictment of a policy regime that deliberately undermines the chances that many young Australians have of a decent material life while it shamelessly transfers public resources to the children of the rich to purchase even better schooling facilities. As the Report states – it is a disgrace that so many people in such a wealthy nation can be so poor.

On the eve of the Annual Spring Meetings of the IMF and the World Bank in Washington last week, German Finance Minister Wolfgang Schäuble wrote an article in the New York Times (April 15, 2015) – Wolfgang Schäuble on German Priorities and Eurozone Myths – justifying the German stance with respect to the Eurozone crisis. He argued that the Eurozone was pursuing the correct response by placing a focus on “structural reforms”. He said that the IMF boss was in accord with this assessment and further structural reforms were necessary, including “more flexible labor markets”. He included labour market reform as part of a push for “modernization and regulatory improvements”. In denial of the basic rule of macroeconomics that ‘spending equals income’, Schäuble said that fiscal stimulus “is not part of the plan”. He might have read the complete text of the latest IMF World Economic Outlook (April 2015) – Uneven Growth: Short- and Long-Term Factors – before he sought comfort in the imprimatur of the IMF. That organisation seems to say one thing here and another there! It has become schizoid as it confronts the fact that its Groupthink sees itself as a major part of the neo-liberal free market (help the rich) putsch whereas its research economists find out that the facts don’t match the political (ideological) stance. The IMF should be defunded and recreated to serve positive purposes.

There was a story in the Australian press (April 8, 2015) – ‘Impossible choices’ to be made as human cost of foreign aid squeeze measured – that not only exposes the deep flaws in economic reasoning that accompany neo-liberalism’s emphasis on austerity but also makes one ashamed to be Australian. The problem, however, is not Australian-specific. The neo-liberal paradigm rules the World at present and humanity generally is the victim, particularly those most disadvantaged in material terms. The cuts announced by the Australia federal government to our Overseas Aid Program in the next three years will be the largest shift in provision of aid in our history. The projected cuts are now starting to manifest in concrete terms as aid agencies start to cancel programs and lay off staff. Once again the myths of neo-liberal macroeconomics leads us to accept governments doing appalling things in our name.

Its a public holiday today in Australia so I will keep it relatively brief. The fact it is a public holiday and the roads are quiet, many shops are closed, you can hear people working on their houses/gardens, people are walking in family groups around the beach and harbour (Newcastle), and there is a plethora of community and sporting events happening today tells you something. It tells you that public holidays and weekends (when the same sort of activities are observed) are special and quite different to the standard 9 to 5 (8 to 4) working week from Monday to Friday. Why is that important? The reason is that the specialness is largely denied by employer groups who consistently try to get penalty wage rates cut so that their members can more fully exploit their workforces. In many cases, the workers who earn penalty rates are in the lowest pay sectors such as accommodation, hospitality, food, and retail. There is pure greed involved in their on-going demands but also gross inconsistency. Many business groups repeatedly mount challenges to the penalty rates system that Australia has in place to protect workers’ rights. But then when their own ‘conditions’ are threatened by deregulation, they argue that the world will end. Hypocrisy has no bounds when dealing with these characters.