It is almost unbelievable what some journalists think passes for quality writing. Today (December 9, 2014) Australians were trying to deal with the vicious new scheme designed by the Federal government to herd unemployed indigenous people in remote communities into below legal wage work-for-the-dole schemes because the government refuses to use its fiscal capacity to generate jobs where there are none, and then, just after lunch we were confronted with an article in the Fairfax press – Australia adrift: Lost decade beckons as good fortune wanes – that beggars belief. Australia will have a lost decade if it continues to elect governments, which work against the national interest. There is nothing predetermined about it. The rise and fall of the mining sector is an historical given – we have been through these cycles before. It all depends on how the Federal government deploys its fiscal policy tools. If it continues to run pro-cyclical policy (cutting when private spending is weak) then things will get worse. It we break out of the austerity trap, then the Government can easily redirect growth back to domestic spending. A major public sector job creation program and a large-scale public infrastructure redevelopment would be ideal ways to begin this policy shift.

Australia hosted the recent G20 Meeting in Brisbane and showcased our embarrassing political leadership. Leading into the summit, our Prime Minister had said he would “shirt front” Russian leader Vladimir Putin. Instead he met with the Russian and together they cuddled a native animal (Koala). Then at the opening address, our Prime Minister was humiliating when he told the other 19 world leaders how bad Australians were for rejecting his $7 a visit private contribution to doctor consultations as part of his plan to get the fiscal balance back into surplus. A few days after the US-China signed a major carbon reduction pledge and the rest of G20 nations were working to ensure the final statement of the meetings re-affirmed the World’s desire to address climate change, our Prime Minister was telling the World leaders how tough his government was in getting rid of the Carbon Tax and repeating his mantra that Coal was our future. At least, the Australian government’s insistence that climate change not be on the G20 meeting agenda was ignored by the other nations much to the embarrassment of our leaders. These dorks think they are big time. All the proved was how unsophisticated the political leadership in this country is. The Tea Party Republicans in the US make our lot look like fools! The assessment is that our self-trumpetted ‘macho man’ PM came out with sand kicked in his face looked liked “a coward and a weakling” (Source). And if that wasn’t enough we had the ordeal of watching our Treasurer strutting the world stage with the ‘Finance Ministers’ demonstrating how unqualified he is for that important national job.

Last week, the former head of the Australian Treasury, Ken Henry gave a speech at the Australian National University entitled – Writing a New Australian Story – which received considerable press coverage. His message has relevance to all advanced nations who are engaged in a war on their population via fiscal austerity and attacks on workers wages and conditions as a enhancing so-called international competitiveness and engendering an export-led recovery. He considers these things are fine but not as ends in themselves and successive Australian governments have forgotten that message and undermined our national prosperity as a result. He believes it is time to reorient the public debate to focus on the challenges ahead rather than be mired in single-minded goals that only help a small sector of our society. I agree with some of what he says but we reach the same conclusions from an entirely different body of economic understanding. I had a 4-hour flight today on my way up to the North of Australia and this is what I wrote on the journey to keep myself amused.