The CEDA Report – one of the worst ever
The public policy debate in Australia today has been hijacked by two ridiculous interventions. The first, being a proposal that the states be given back their income tax powers (which they voluntarily forfeited in 1942). It is an attempt to align the large spending responsibilities that the Constitution places on the state governments with the capacity to raise revenue. The ideology behind the conservative proposal is to reduce the size of the federal government and to increase the likelihood of a Eurozone-type crisis where the non-currency issuing states would not be able to maintain first-class health and education systems. A far better and more modern solution to the spending-revenue mismatch would be for the currency-issuing federal government to assume responsibility for large-scale public infrastructure, education, health and other related expenditure areas that are currently the responsibility of the states. I will leave that at that for the moment. The second intervention came in the form of a publication, released yesterday (March 29, 2016), by the so-called Committee for Economic Development of Australia (CEDA) – Deficit to balance: budget repair options – which has been in the headlines over the last 24 hours. All the media outlets have been salivating over this report – some calling it the work of a “high-powered … Commission”, and I have not read one report as yet, which has given it any form of critical scrutiny. All the reports on all media forms have essentially acted as amplifiers – as press agents for CEDA. Which only goes to show how our national media fails to serve the people in areas that are of crucial importance to our national prosperity. The fact that such a report gets any coverage also confirms that in these crucial areas of public life, the debate is conducted within a fog of ignorance and lies. Almost all of the propositions that form the basis of this Report are just ideological myths perpetuated to advance the interests of capital over the workers.