French presidential election – some hope for a future progressive, anti-EU Left

Australia will go to a federal election on May 21, 2022 with the current conservative government looking in bad shape and the Opposition Labor Party has been helped a little by interventions from the French president. Emmanuel Macron candidly called the Australian Prime Minister a liar which further dented his already fractured image as the most untruthful politician in Australia. I hope the conservatives are routed but, in saying that, I know it means the Labor Party will take power and continue their embarrassing pretence to be progressive, while preaching the very mainstream economics that has damaged so many of the people that the Labor politicians claim to represent. A bad situation really. We are not yet in a situation where the traditional conservative and labour parties are being challenged by new entrants to the field. The first round of the French presidential election for 2022 were held at the weekend with some very interesting results and definitely showed that the traditional political voices in France are dead – something we could only wish for in this country.

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Single-payer health care should be funded by the federal government

Here is my Wednesday news blog post which ends as usual with some music – today some consummate guitar playing. Today, I discuss the dispute about M4A in the US and clear up some misconceptions. Many think that Medicare for All is defunct in the US because the ruling party – the Democrats have essentially rejected the lobbying attempts. Some people who have associated themselves with Modern Monetary Theory have, it seems, been advocating a state-based campaign to get single-payer schemes installed at that level. Is this a violation of MMT principles? Some think so. I do not. It might reflect ignorance of the nature of the sector but it doesn’t amount to a rejection of MMT. Anyway, I am a federalist and I explain why. I also bring attention to some anti-colonial struggles in the Caribbean.

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Prospective future Labor Prime Minister wants to channel those who cut real wages, privatise and extol neoliberalism

It’s Wednesday, and I am flat out today on a range of things including two live events to finish of the edX MOOC we have been running over the last 4 weeks. These sessions go for around 90 minutes each and have given the participants from all over the world a chance to discuss things about Modern Monetary Theory (MMT) and clarify uncertainties etc. It also helps me find out what beguiles those who come into the material for the first time. So it works to benefit both ways. Today, I am sad that the Australian Labor Party federal leader, who is in the box seat to become the next Prime Minister in May this year has just announced his model is a past Labor prime minister (Hawke) who turned out to be a US corporate spy acting against the labour movement when he was President of the Australian Council of Trade Unions (the peak body) and who fast-tracked neoliberalism in Australia during the 1980s. His other model apparently is John Howard, the conservative prime minister from 1996 to 2007, who accelerate that neoliberalism, locked up refugees on remote islands indefinitely (some are still there), turned against the unions, turned against the unemployed, and oversaw the explosion of household debt while his government ran surpluses and crippled public infrastructure and services. What gives? And the music today had to be an antidote to the anger that the Labor leader’s revelations today have engendered. And a tiny thought on Russia.

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Vast majority of NZ economists seem to support MMT

Yesterday, I published a full analysis of the national account release in Australia, so today I am pretending it is my Wednesday ‘news’ blog with the music segment that seems to be popular. The news is all floods in Australia, death and destruction in the Ukraine and big talk (about 2 or more decades too late) from the Western governments. I note that the German government has confiscated a luxury yacht owned by some Russian ‘oligarch’ (don’t you just love their terminology) while stacks of other oligarch yachts are heading or are in the Maldives to avoid such a fate. Stupid question: if these oligarchs are so bad and their fortunes ill-gotten why have we waited so long to do something? Today we talk briefly about the resolve of the RBA to resist the gambling addiction of speculators in the financial markets. We also consider a discovery I made last week that top New Zealand economists seem to support Modern Monetary Theory (MMT), and then if that isn’t enough – some music.

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The year Australian progressives abandoned the national commitment to full employment

At present, the unemployment rate in Australia is 4.2 per cent and falling. If the rate of new immigrants remains low for a while as our external borders open, then it is likely the unemployment rate will fall into the 3 per cent range soon. What people are learning is that the claims made by mainstream economists that full employment was anything between 5 and 8 per cent (at various times to suit their arguments) was a lie. It just suited their ideological agenda and flawed theoretical framework to maintain that narrative. Of course, underemployment is still very high, which means that even if the unemployment rate falls further, we are still a way from being at full employment. But with prices accelerating at present, we are seeing calls for government to pursue an austerity fiscal approach, which would prevent the unemployment rate falling further. We have been here before. Today, I document a major turning point in Australian politics, when the Labor government became the first to abandon the national government’s commitment to full employment, a policy approach that had defined the post Second World War period of prosperity. So … back to 1974 we go.

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The last thing we need is a return to fiscal surpluses and rising household debt

There are some Op Eds that are bad, and then others that transcend that standard to become terrible. Such was the case last week when I read this article in the Australian press (Sydney Morning Herald) (February 18, 2022) – It’s time to return to Costello economics, whoever wins the federal election – which was written by a former advisor to the last Labor Prime Minister in Australia. The article is dishonest in that it completely ignores the most significant aspects of the period he seeks to eulogise. It is also scary if it reflects current Labor Party thinking, given the author’s previous associations.

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Australian Labor Party cannot even get social policy right much less economic policy

It’s Wednesday and I am working on other things today, which need finishing. But today we saw once again why the Australian Labor Party is a disappointment. They regularly frame the economic debate in neoliberal terms, which make it harder to break out of the mainstream narratives. But, today, they even go social policy wrong and will support legislation that allows religious organisations (schools etc) to discriminate against gays and trans people under the platform of ‘religious freedom’. The legislation allegedly is designed to stop non-religious people saying bad things about Pentecostal extremists. But it just enshrines the rights of religious characters to inflict damage on others. And the Labor Party is supporting it. Spooky – which brings in my music feature today.

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The European conservatives are organising while the progressives fight among themselves

I read an article in the Frankfurter Allgemeine Zeitung (FAZ) yesterday (January 16, 2022) – Ich hoffe auf Deutschland – which made me laugh really. Comedy in absurdity. It also told me that the forces in Europe are firmly against any major progressive change. I considered this issue last week in this blog post – German threats of exit rely on the ignorance of others reinforced by Europhile progressives (January 11, 2022). I know progressives thought that the invocation of the Stability and Growth Pact escape clause in 2020 as the pandemic took hold might have been a sign that things were changing in Europe after years of austerity bias. But as the days pass, more evidence mounts that there is a status quo that is being managed and it won’t be long before we see the familiar claims about excessive deficits and debt. The latest input comes from Austria’s new Finance Minister, Magnus Brunner who was reported in the FAZ article as saying that he rejects a debt union outright and hopes to win over the new German government to ensure they hold the fort. With the new German finance minister also of a similar if not more extreme persuasion about sound finance, I do not think he will have much trouble convincing the German. He also signalled that he wants to use a coalition – the “Staaten der Verantwortung” (States of Responsibility) to maintain discipline in the Eurozone. The short period of fiscal flexibility is coming to an end. Meanwhile, with the French Presidential election approaching, the Left is fighting among itself for peanuts. The old guard is not about to fall yet.

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Australia is becoming an Orwellian dystopia

It’s Wednesday and I am retaining my practice into 2022 of only offering a sort of short commentary or news with music service on this day, unless a major data release (like the national accounts) comes out. The title of this blog post was inspired by an interview I listened to on the radio the other day with a leading epidemiologist who noted Australia was becoming like some Orwellian dystopia as the national government elevates spin to new levels and effectively jettisons any semblance of leadership. We are now being treated as fools by our national and state governments on a daily basis and it is now approaching dangerous levels.

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Marx’s dream does not justify ignoring day-to-day human suffering

One of the recurring criticisms I face when presenting at events comes from those who say they are ‘socialists’ or ‘Marxists’. They accuse me in various ways of being an apologist for capitalism, for offering palliative solutions to workers, which will delay the break down of the system and the revolution to socialism and communism. These critics proudly announce they follow Marx’s solutions and that they reject Modern Monetary Theory (MMT) because it is just a stooge for capitalism. The problem is that Marx had no real vision of how we would transit to Communism. A recent book referred to Marx’s philosophical position on this as a ‘dream’ (more later). And MMT is not specific to any mode of production, by which I mean, who owns the material means of production. It is applicable to any monetary system, and I cannot imagine any modern, technologically-based society functioning outside of that reality – socialist, capitalist or otherwise. But, moreover, the critics seem to be displaying a lack of basic humanity where they exercise reasoning that Noam Chomsky regularly refers to as belonging in a philosophy seminar. Even progressives (and socialists) have to be aware of humanity – as they plot and scheme for the revolution.

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