Tag Archive | Economics

About Abbott

Tony Abbott is a principled man; if you rate “being against everything Julia Gillard says” as a principle.

His policies are a mess. He frequently contradicts himself, on carbon taxes and on emissions targets. It is abundantly clear that he will say literally anything to separate himself from his arch nemesis Julia Gillard – regardless of the cost of party’s dignity, and his own coherency.

Abbott’s new strategy is vaguely reminiscent of the crux of the “don’t ask, don’t tell” brouhaha in the United States – that is, to say nothing, apparently so he can continue to allow his role as the opposition to Gillard dictate his shambolic campaign. (It’s easier than constructing and running on your own platform, I guess.) Abbott is messy and not surprisingly, his supporters are too.

Truth be told, I’m not being entirely fair to Abbott; he does have some convictions. Not liberal convictions, but convictions nonetheless. For example:

I recently found myself in an online tussle with a staunch Coalition voter who declared my criticisms of Mr Abbott null and void because I haven’t matched Abbott on the volunteer community work front. (Note: I refuse to refer to supporters of Tony Abbott as ‘Liberals’, because I think that the English language has suffered enough.)

I won’t bother addressing this asinine attempt to personalise rather than to engage the issue at hand in any detail. Instead I will just say: yes, that’s a snapshot of the reasoning behind the conviction that Tony Abbott is fit to run this country.

I had drawn attention to the fact that there’s literally a $70 billion black hole in Abbott’s proposed budget. It’s OK though, because he plans on delegating the task of covering his own arse to a committee, once he’s been elected, of course. One thing is for sure: my Coalition compatriot doesn’t think me or Brown, or Gillard, should be allowed to raise the requisite revenue by increasing taxes on the wealthy. I guess that he, along with his comrades, will find a way to confabulate a perfectly plausible, cognitively comfortable explanation for such a backflip, should this one occur under Abbott; a bit like what happened with monkey-man Johnny Howard’s GST fiasco. Moreover, if Australian Coalition supporters think “cutting public service jobs” is a valid way to pay for things, I only hope for their sake that they never end up needing the safety net those jobs service.

Of course, if Tony “Shit Happens” Abbott wanted to cover his costs without introducing additional taxes (on the rich, or more likely, the poor), he could start his expenditure trimming by bringing the troops home. But, in this crazy age, we clearly don’t have time for rational solutions.

I proposed stem cell research as a sound national investment. My pal begged to differ. Apparently it’s OK for Abbott to piss $70 billion up the wall, but paying for a smart, qualified and otherwise capable person like my father – a victim of chronic spinal cord injury – to re-enter the workforce as a taxpayer (and to get his dignity back) is a waste of money. So establishing Australia as a major exporter of cutting-edge medical biotechnology is a waste of money. Hell, as far as Abbott and his herd are concerned, if it’s modern and productive, it’s a waste of fucking money.

This “dude” once called Kevin Rudd’s successful $42 billion stimulus package a reckless waste of money. Is my math bad, or is $42 billion not less than $70 billion?

But since I’m just someone who just posts things on the internet, rather than someone who “walks the walk” like Mr Abbott, my opinions are vacuous. I know, right?

I was also told that, since I’m actually unsure of who I’ll be voting for in the next election – to the point where I might not be comfortable voting for anyone – apparently I have relinquished my right to hold an opinion about how the country should be run. Never mind the fact that, as a radical social liberal (in the dictionary sense), I’d be sort of comfortable with voting for Malcolm Turnbull. I’ll probably settle with the Greens (I was considering the Democrats, but really, I can’t tell the difference between Democrat policies and those of the Greens). But no vote is simply a vote of no confidence.

Support for Abbott is a remarkable manifestation of the distorted thinking around politics that grips our country.  It’s fascinating, but it’s corrosive.

I get it though: they hate Julia. Well, guess what? Leftists and centrists hate Julia just as much as fiscal conservatives do – we’re just not willing to jump into bed with a mindless shark to prove a point. I don’t think I’m asking too much of anybody when I ask for reasoning to take precedence over knee-jerking or blind group loyalties and associated prejudices.

I don’t mean to pick on one person. (Though, should that person read this, I would like to point out to him the right of reply I’ve implicitly extended to all of my “victims”.) Aside from this, I can honestly say he’s a great guy. I’m only posting this because I’m certain that this attitude is a national epidemic.

After all, I was facetiously told, in the same discussion, that I should expect my blogging to change the world. But again, the issue isn’t me (as much as I’d like it to be), the issue is Tony Abbott.

But yeah, all I want for Christmas is a Liberal Party with a responsible, honestliberal Opposition Leader.

Free market Lysenkoism

Trofim Lysenko (1898 – 1976) worked under Joseph Stalin as the director of Soviet biology. He was a remarkably egregious pseudoscientist whose claim to fame was a technique he termed ‘vernalization’, which promised to quadruple crop yields for the struggling collectivised Soviet agriculture sector.

Lysenko took his cues from the ideas of Ivan Vladimirovich Michurin (1855-1935), an honourable member of the Soviet Academy of Sciences. In a characteristically extensive academic propaganda campaign, the Soviet regime sold Michurin as the father of so-called Soviet biology, which was considered superior to the ‘capitalist’ (and accurate) theory of Mendelian genetics.

The Soviets believed that adopting Lysenko’s agricultural practices, they would be able to fight off famine and demonstrate the greatness of the Soviet social model to the world. Questioning Lysenko’s theories was seen as an act of sedition; sceptics were smeared as bourgeois fascists. This is not to say that the people behind the Soviet propaganda machine didn’t believe in Lysenkoism – most of them probably did. Today, most of Lysenko’s research is rightly considered fraudulent; junk science manufactured to support unstable and paranoid politics.

Lysenko and his Soviet comrades frequently publicly decried proponents of evidence-based biology as ‘fly-lovers’, ‘people haters’, and ‘wreckers’. Mendelian genetics was seen as an impediment to communist productivity and national progress; a pitiful manifestation of Malthusian capitalist nay-saying.

Now, the term ‘Lysenkoism‘ is used to refer to the distortion of science to support a particular political ideology.

Yesterday’s leak of thoroughly incriminating internal documents from the Heartland Institute (check out the source) got me thinking – I mean about more than the fact that nine documents contained a hell of a lot to worry about compared to the tepid contents of the thousands of emails and hundreds of documents that made up the entire ‘climategate’ package. (But that is worth pointing out.) We also already knew that climate denialism was little more than a racket.

It actually reminded me of a point that had always seemed so obvious to me, but that I rarely see discussed. It stems from the fact that anthropogenic global warming deniers will often call mainstream climate science ‘Lysenkoism’ in the media. The obvious question to ask is: who are the ones skewing science for politics? Certainly Al Gore is no central-planning socialist.

What do almost all of the AGW deniers and lukewarmists have in common? Let us list some names, and we’ll see if we can isolate a common variable:

Penn Jilette; Matt Stone; Trey Parker; Alex Jones; Alan Jones; Christopher Monckton; Andrew Bolt; S.E. Cupp; Anthony Watts; Glenn Beck; Ron Paul; Matt Ridley; Bjørn Lomborg; the staff of (the unfortunately named) media outlet Reason TV; the signatories of this letter

The answer? An infatuation with the so-called free market. Really, check Google; or better yet, read some of their books.

Even die-hard fans of the free market know that if scientists are right about anthropogenic global warming, effective solutions will necessarily begin with top-down market intervention. Moreover, the fact of global warming also contradicts the ideal that free trade, unfettered by oversights, can only be a good thing for humanity. People who are committed to ideas – especially utopian political ideas – tend to get a bit clingy.

Former doubter Michael Shermer explicated this sentiment when he came out as accepting climate science. To wit:

Nevertheless, data trump politics, and a convergence of evidence from numerous sources has led me to make a cognitive switch on the subject of anthropogenic global warming.

Though, later on he did add some free market caveats.

Let’s watch Chris Monckton push for an Australian Fox News:

His talk of discrediting climate science is firmly within the context of promoting the free market. Interesting, no?

And this can be found on the Heartland Institute’s About page:

Mission: Its mission is to discover, develop, and promote free-market solutions to social and economic problems.

We can easily note a clear trend of one of humanity’s greatest achievements in science (ie, figuring out what could kill most of us before it happens) being subverted, corrupted and bastardized for political purposes. So, apparently, for many, data does not trump politics. To disseminate global warming denialism, whether knowingly or unknowingly, is the praxis of free market Lysenkoism.

Practically every single prolific climate change sceptic utilizes propaganda originating from someone who has some connection the Heartland Institute. The kind of media manipulation for dissemination of discredited theories, paying off scientists and, the cherry atop this outrageously pernicious pie, promotion of the indoctrination of school children in the discipline of junk science, all expressly advocated in the Heartland Institute’s documents, leave me wondering why anyone in their right mind could continue to take the global warming denial/dilution project seriously.

I do mean to write up my developed take on the free market in the near future, but I’m a little busy for the moment. In the meantime, I’d like to urge the free market cadre who are responsible for most of my hate mail, and the more well-spoken and intelligent free market advocates who have raised the issue of my blog in real life, to do something to quell the disturbing trend of Lysenkoism flourishing among their colleagues. It’s making you all look ridiculous.

You can read more about the Heartland leaks themselves herehere and here (especially for Australians). Nothing on any of the Australian Murdoch newspaper websites, though.

The enemy, in his own words

He said it best himself: God is real because tides go in, tides go out and Bill O’Reilly needs to believe there was a divine reason for his birth. Clearly Bill’s ego is so big he is inexorably impelled to disregard the moon.

He is the kind of enemy you want. You don’t wish for his total destruction, like you would with the Taliban; you want Bill to tell you what the powers that be want you to think. He’s a cog in the machinary of democracy: a witless, self-serving and moderately deranged cloddish cog, but an essential cog nonetheless. His opposition to you is invigorating.

I can love certain enemies. I’m a bit like Jesus in that respect.

As a good papist, Bill has the gumption to judge people who ask the world’s governments to uphold the better bits in the Bible. (The stuff that didn’t deal with God-sanctioned atrocities and hell for people who aren’t gullible or infantile enough to believe in fairies.) If you haven’t seen it yet, you gotta read this shit. Like, totally.

Because of that shit, I’m using Bill as the primary subject for my horribly biased study of the anti-#occupy propagandists. Don’t worry, he’s a big boy; he can take it.

To paraphrase the column with more fairness than Bill’s host network would: the occupy protesters say they’re regular folks, like you ‘n me – but they’re not, and they want our stuff. Also, communism is evil and inefficient. To wit: “Generally speaking, these ‘Occupy Wall Street’ are just bored morons who want handouts.”

Who didn’t see that one coming?

My favourite part of this septic carbuncle is Bill’s brainless defence of the Platonic ideal of capitalism; the kind of capitalism I’m cool with – capitalism that rewards hard work. Unlike Bill, I’m not deluded (or malicious) enough to confuse dictionary capitalism with the current system. Dictionary capitalism expired with crony capitalism. Here’s what Bill said:

If you work hard and do well in your job, you will usually prosper, providing you practice patience. If you don’t work hard and smart, you will be out on your keister, unless a union saves you. Some believe that this survival of the fittest system is unfair because all people are not born with equal aptitude. And that’s true. Capitalism is not fair to everyone. But it gives the largest amount of folks the best chance to succeed because there are many different routes to prosperity, and some disinterested bureaucrat isn’t standing around calling the economic shots.

Can you just feel the sophisticated moral philosophizing that went into that? The utilitarians and consequentialists would be proud. Actually no, they wouldn’t be. They’d probably be exasperated and deeply troubled. George Carlin said the smart Americans call the cliché Bill is invoking ‘the American dream’ because you’d have to be asleep to believe it.

Here’s the sentence that opens the paragraph I just quoted:

 The American economic system is a meritocracy.

How can any reasonable person meaningfully call the system that makes Paris Hilton worthy of media attention meritocratic? Old money is not merit. If Bill wanted to be consistent with his ‘merit’ line, he would say that all of a person’s wealth should be bequeathed to charity when they die, rather than their prodigal squirts. Otherwise, where’s the freaking merit?

Profits are not merit. You’d have to be pretty damn Machiavellian to confuse corporate monopolies with anything resembling ‘merit’. The only kratia-derived English word pertaining to offering corporations the implicit goal of unfettered market domination is plutocracy. This modernizes the aristocracy satirized in The Prince (by Machiavelli) and takes it to an absurd extreme.

The point is that meritocracy, or any other label O’Reilly wants to surreptitiously ascribe to neoliberal economics does not equate democracy. It doesn’t sex the idea up either. It just makes the system sound like plain old oligarchy – you know, the Soviet thing.

I thought America’s founding fathers fought for democracy. I don’t remember meritocracy coming up in my basic reading on American history; but I did commit to memory this nugget of wisdom from Thomas Jefferson:

And with the laborers of England generally, does not the moral coercion of want subject their will as despotically to that of their employer, as the physical constraint does the soldier, the seaman, or the slave?

Here Mr Jefferson almost sounds like a Marxist. For the record, Mr Jefferson disliked Christianity too – he was a man of science and a deist, and probably would have been an atheist had he not died 33 years before Darwin published Origin of Species. Thomas Jefferson was a great man and a great thinker.

The irony is that the majority of conservative politicians pushing the ‘economic survival of the fittest’ platitude in the U.S. are creationist-flavoured Christians. (Not Bill, he believes in evolution because the Pope tells him to.) Ironically, on the opposite end of the bell curve, you have the Darwinian gunners like Richard Dawkins saying ‘survival of the fittest’ is profoundly immoral and as an enlightened species, we should be transcending it. That’s also what modern medicine does.

But I digress. Let’s return to Bill:

But the “Occupy Wall Street” protestors want those bureaucrats. They believe that governments have a moral obligation to provide a measure of success and education to everyone, no matter what the cost. This, of course, is impossible.

Wow, where do I begin?

I don’t think anyone is arguing that success shouldn’t have to be earned. That’s the definition of success – you earn it. I’m just wondering how a professed meritocrat like Bill O’Reilly expects the fourteen year old daughter of drug-addicted parents to earn herself a decent education. Some say that education is a basic, non-negotiable human right. It seems to follow then, that in wealthier nations, public education should reflect that in quality.

I agree that admission into higher education should be based solely on merit, but how can anyone expect to gauge the merit of people too young (we call them ‘children’) to have developed cerebrums yet? That’s why you educate the little bastards – so they have a chance to demonstrate their merit when they’re old enough to apply for higher education.

Apparently in America, your life is only sacred and deserving of rights if you’re still an embryo.

Teenage dropouts lose 1.8 IQ points every year of education they miss (from this study. Oh no, science!). And not incidentally, a lot of common criminals are not educated – most have low IQs. Put simply, schooling significantly reduces the probability of incarceration in America (according to this 2003 study - more science!). When you raise the standards of education and make it compulsory, you lower crime rates. Clearly not all dropouts turn into criminals, and some do quite well, but that’s not the point. What you’re aiming to do is give everyone a decent shot at giving something back.

But obviously that would be a waste of taxpayer dollars, according to Bill, anyway.

If you want a meritocratic economy, fine. But you won’t find that in America – real merit is not rewarded in America. Too many extremely talented college graduates are unable to find employment. I suppose that’s to be expected in a society that seriously considers creationists as viable presidential candidates. Wait, the unemployed talent thing happens here too. My mistake.

Here’s a couple of common sense questions I’ve got: without educated citizens, what’s the point of democracy? Do the rich really want stupid people agglomerating and calling the shots? Didn’t they learn anything from the Bush presidency? How are entrepreneurs supposed to drive the economy if they don’t know enough math to understand their balance sheets? Or enough science to make a useful product?

You’d think the bombastic author of Pinheads and Patriots would have mustered up the patriotism to read his nation’s own Declaration of Independence (again wrought by the inimitable Thomas Jefferson):

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed.

I suppose Bill occupies the ‘pinhead’ moiety of the dichotomy he examines.

If you want to equate happiness with profits, that’s your bag. I do it too, to a degree. It doesn’t change the fact that Mr Jefferson wrote that the inalienable rights afforded to the American people include ‘life’ (presumably not dying of starvation) and the right to ‘pursue’ something; how are you supposed to pursue anything if you have thyroid cancer and you can’t afford surgery? What about if you’ve got Parkinson’s, the unregulated bank lost your money and your family are all dead because they had no health insurance? (And when they died, their employers cashed in on ‘dead peasant’ plans, leaving you with nothing but funeral bills.) I thought rights were rights – not things to be earned.

Bill O’Reilly aims to spur the possessive paranoid monkey minds of his readers with his trademark contumely and feeble reasoning. His whole argument is encapsulated in the line “they want our stuff”. (“Dey took err jerbs!”) For those of us more amenable to appeals to human solidarity, Bill’s boorish melodrama makes for febrile reading. Well, only if you try to take him seriously.

The ‘stuff’ these folks want are food, healthcare, education and the jobs that all those ‘job creators’ are supposed to be busying themselves creating. How dare those poor people. And how dare President Obama decide that maybe it’d be more reasonable to tax people who can live without some of their money at a higher rate. The nerve! The Audacity of Hope!

Unlike the Fox-bolstered pinheads who ran against him, President Obama appears to have actually read at least the first sentence of the United States’ Constitution:

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

Apparently that maneuver can make you unelectable over there.

(Note the ‘W’ in ‘Welfare’ is indeed capitalized. I bet that really messes with the Republican Party candidates.)

Living in a safe, affluent society is not a free ride. If such a milieu were a universal right, millions of children born in third world countries wouldn’t die hungry every year. If Bill O’Reilly were serious, he would want to pay his taxes for the rights of those children to be protected. If he wants to be chauvinistic and only want those rights protected for Americans, what’s his problem with his tax dollars doing that? As Warren Buffett, one of the richest men in the world wrote in a much-reviled August 21 New York Times op-ed:

I know well many of the mega-rich and, by and large, they are very decent people. They love America and appreciate the opportunity this country has given them. Many have joined the Giving Pledge, promising to give most of their wealth to philanthropy. Most wouldn’t mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering.

Warren Buffett is a smart man, go read him here. I like Warren Buffett. He’s an agnostic who talks about ‘shared sacrifice’ – a nice contrast to the Christians like Bill who talk about ‘self-interest’.

If you think you know economics and wealth-building better than the chairman of Berkshire-Hathaway, you’re an idiot. If you think Warren Buffett is a communist, you should seriously consider sitting the Wechsler Adult Intelligence Scale (WAIS) to see if you’re qualified to apply for a disability support pension – but only if you’re not an American.

What did Bill O’Reilly have to say about Warren Buffett not being wrong? He threatened that if tax rates went up, he’d cancel his show and fire his employees. Oh no. Don’t do it Bill. We’d undoubtedly miss your candid sweaty belligerence.

Context is important here; the #occupy movement has gone global. Down here in Melbourne, Australia, our regressive morons are sounding suspiciously like authoritarian apologists for the police brutality that rocked our CBD twice in the last week. Tim Blair described the city council’s first shameful malapropism gleefully as a ‘hippie toss‘. I had to do some digging on Blair to find out whether or not he was taking the piss. (Hippies in 2011? Really? Where?!) He wasn’t. He isn’t that smart, but he is that sadistic. Expect more from me on this vulgarian.

I don’t want to say unequivocally that Australia is better than America, do you want to know what my favourite dextral dickhead had to say on the #occupy protesters?

They are not trying to destroy capitalism, but to make it better. They are attacking the unfairness at the heart of a dysfunctional global financial system, and the lack of accountability of the people who run it, many of whom are ethically challenged.

That isolated quote seems to suggest Miranda Devine and I can agree on something. See? I really am like Jesus.

I’m watching the protean #occupy movement through its detractors. Madame Devine’s eerie dalliance with rationality notwithstanding, the deluge of idiotic paroxysms from the world’s regressives indicates the protesters are on the right track. The whole thing reminds me of the inspiring ideals that drove the American and French revolutions. Here, on this blog, I’d like to state that I’m with the occupiers. There are literally thousands of us, and we are legion.

And sod Bill O’Reilly.

American libertarianism is self-refuting

I was at a 21st birthday party earlier this evening and I spoke to a woman I went to high school with. The conversation turned to politics and she told me that she was a libertarian. I gently asked the series of (covertly rebarbative) questions brought on by my need to resolve a sudden attack of cognitive dissonance. She remained obdurate and oblivious to the gaping holes in her thinking which I humbly sought to highlight. It was like the giant mole scene from Goldmember. This woman I don’t personally dislike – in fact, she was very briefly my girlfriend in my formative years and it ended amicably. (I’m an amicable kind of guy.)

This wasn’t supposed to be one of those times where I’d exploit the naïveté of my interlocutor in order to watch gleefully as she buries herself in her own regurgitated bullshit. It was tragic – my limbic knight in shining armour was pounding his giant sceptre on the closed drawbridge of my anterior cingulate cortex. I was compelled to preach the Good News of democratic social liberalism and point out that she’d still get to call herself a civil libertarian (and use the word ‘libertarian’ properly). But I didn’t, because I don’t believe in sudden incursions of reason when there’s clearly no room for what I have to offer – and, well, I was supposed to be the friendly bartender (that was my birthday gift).

American libertarianism advocates a very small government, the abolition of taxes, a totally unregulated market economy and elimination of the welfare state. So how is removing power from democratically-elected governments and giving it to entrepreneurs supposed to lead to anything other than the worst kind of plutocracy? Doesn’t this totally dismantle the logic behind the use of the ‘liberty-’ prefix in the word ‘libertarian’? That’s what I mean when I say American libertarianism is self-refuting. Orwell is puking in his grave.

In the darkness of my youth, I considered myself a libertarian. I believed in the maxim “everyone should have the freedom to do as they wish as long as they don’t hurt others,” and I still do – but I think ‘libertarianism’ as espoused in America as a comprehensive political and economic theory is freaking insane. Growing up, I realized that once you apply that maxim to the personhood of corporations (or the concept of corporation-as-sports-team, which is the present popular libertarian position), it follows that you need to police them just as you would the people in order to preserve the freedom and safety of others. So yes, in a way, I’m still a libertarian. But I don’t see how you can defend freedom against corporatism without an adequately equipped and financed government. I also don’t understand how it’s moral to turn basic human rights like access to good education and proper healthcare into commodities to be traded.

US libertarian gynecologist presidential candidate Ron Paul and progressive icon Ralph Nader appeared on Fox News together last year to speak out against corporate welfare. I’m all for that. The interviewer concluded with an incisive question on healthcare which explicated the enduring stark differences between the politics of Nader and Paul. Nader’s position was my position – he wants comprehensive healthcare for every US citizen, to be funded by the taxpayers. Ron Paul’s answer baffled me – he wanted to cut public funding for healthcare in order to let the gladiators of the ‘free market’ (an egregious misnomer) battle it out, which would apparently instigate a price war and eventually lead to healthcare being affordable enough to be accessible even to people currently on food stamps. Huh? How? Isn’t Ron Paul supposed to be the prophet of profiteering? How can you make a profit from people who have no money? The recent US mortgage bubble implosion and the subsequent global financial crisis clearly demonstrates that it simply shouldn’t be done – not for the consumers, and not for the economy either. Really. American libertarianism seeks little more than to institutionalize greed and call it freedom.

It didn’t take the horrible and ironic tragedy of Dr. Ron Paul’s campaign manager dying thanks to inadequate access to healthcare to elucidate that libertarianism can’t work. It also simply can’t work because no one chooses the hand they’re dealt – cognitively, experientially and genetically – and not everyone has the same opportunity to live like an MBA graduate who can borrow a few grand from grandpa to manufacture living iPhone covers so he can spend his days with a jacuzzi jet massaging his rectum while he trades dog food and diet cola shares and plays Eve Online while stroking his parrot. You know, hard work.

In fairness, libertarians like to say that people from poor backgrounds just need to start working hard and they’ll be able to earn that money, eventually. Okay, but what about the mountain of living costs intrinsic to a hyper-capitalist system? Health insurance? Energy? And how does removing the burden of taxes on poor workers do anything to improve their economic situations when libertarians also advocate giving employers license to exploit workers ruthlessly? The libertarian doctrine explicitly grants employers the rights to pay staff as little as possible and even to terminate employees in favour of cheaply outsourced Third World labour via the internet. It cuts both ways. Such an ideology would do nothing but widen the gap between the rich and the poor.

American libertarians claim that taxing the rich is a form of oppression. How? So some rich guy won’t get to buy an extra large boat he’ll never have a practical use for and the big banks won’t be allowed to keep trillions dollars locked away from the rest of the world; but some kid from a shitty suburb will get a decent education and may end up a doctor; an engineer; or an entrepreneur who produces something we need, like internet-enabled nanotechnology in t-shirts or a hard time for Apple. Technological innovation is what capitalism and private enterprise is for! But without fair taxes, how can we expect to arm everyone equally with the opportunities in order to contribute and reap? That’s why we modern democratic socialists aren’t against it – we just don’t think it belongs in the same box as what’s outlined in the UN’s Universal Declaration of Human Rights (one of my favourite undeclared democratic socialist documents ever). I’ve said it before: I don’t believe living in a first-world country should be a free ride. Everyone should have a symbiotic relationship with the state, not a parasitic one.

Okay, fair enough that the woman who sparked this post probably won’t read it, and I doubt she’d understand it. But really, how is the modern American distortion of libertarianism popular enough that it spreads as evenly as any other political meme? I’ll soon be sitting down to read my signed copy of Michael Shermer’s The Believing Brain (yeah, I met the guy), and I know that Shermer is a big American libertarian. I hope his outspoken advocation for it is indulged the same rigorous scepticism I’d expect him to adeptly apply on everything else in that impressive-looking book’s pages. I’m open-minded, but my brain isn’t a toilet that flushes automatically.

Am I missing something?

Australian regressives and golden showers

Right after former Prime Minister John Howard trolled the media with his obdurate opining that unfair dismissal laws should again be scrapped, Opposition leader Tony Abbott began making noises about his plans to deregulate the Australian economy. His asinine bitching on the subject of ‘bureaucratic’ encroachments on corporations’ rights to engage unchecked in socially irresponsible business practices was a not-so-subtle echo of the United States’ Teabaggers’ crusty old wet-dream Ronald Reagan. This should be raising more eyebrows.

Australian politics is dominated by two right wing parties. The Labor Party have the conservative label covered; while Labor’s thoroughly regressive counterpart is a twin-headed mutant consisting of the Liberal Party and the National Party which is commonly euphemized in the national press as the Coalition. We also have a well-intentioned but tragically misguided centre-left coterie called the Australian Greens, but I’ll get to them in another post.

The term ‘neoliberalism‘ has become a hotbed of debate since its leery genesis in the Thatcherism and Reaganomics of the late-seventies and eighties. Basically it’s a lazy supply-side theory of economics that advocates the deregulation of corporate practices in a bid to produce something called the ‘trickle down effect’ – that is, if you deregulate the market and cut taxes for those firms and individuals who hold most of the nation’s wealth, they’re supposed to be ‘freed up’ to create more job opportunities for the rest of us. Cutting taxes inexorably results in less government spending, which destroys things like welfare and quality toll-free infrastructure, and it leads to the privatization of national institutions like banks.

Not surprisingly, recent history, particularly the Global Financial Crisis, has shown clearly that the neoliberal approach doesn’t work so well. Even Alan Greenspan, the former leading proponent of economic deregulation in the United States, recently admitted this and ironically paraphrased John Maynard Keynes in his testimony.* In fact it has the nasty effect of dramatically widening the gap between the rich and the poor and leads to what’s called a plutonomy – an economic system directed by the wealthy to serve the needs of the wealthy.

The ‘trickle down’ ideology essentially allows corporations to piss on consumers and layoff staff in favour of offshore outsourcing and label it all as ‘sharing the wealth’. So neoliberalism can be understood as the economic equivilent of a non-consensual golden shower. Some people love golden showers in the context of rape fantasies (pissing on and being pissed on – elsewhere referred to as right-wing libertarians), but the majority just wouldn’t go there if they knew what they were signing up for. In a proper democracy, popular opinion is supposed to govern; and we all know that piss is a poor replacement for actual gold.

Which brings me to the regressive economic policies of Tony Abbott and the current Coalition. Why do I call them regressive? Because the progressive agenda has always been to bridge the gap between the rich and the poor and to create a just society where opportunity is evenly distributed – which is what Reagan promised would happen with his voodoo economics. With the failure of Reaganomics, anyone who wants to redo that brand of voodoo could rightly be labelled an economic regressive.

A rising tide is supposed to help us all float, but the thing is that not everybody can afford a boat. Neoliberalism purportedly aims to create a just and egalitarian society by corporatism. You could probably cook up a differential equation to show how this is supposed to work, but economics isn’t quite as exact as astrophysics. We know that neoliberalism and laissez-faire capitalism has a disturbing history of concentrating rather than spreading wealth. As the spectacularly parochial and insanely stupid politicization of climate science has demonstrated, a lot of corporations seem to care more about delivering dollars to their shareholders and appeasing/crushing the unions they have to answer to than they do about the societies they exist in, or the planet they fucking well live on. Institutionalised free license from the government to mindlessly chase profits is the last thing corporations need if we want to live a just society.

I wonder whether or not the Australia public will recall former Prime Minister Kevin Rudd’s primarily consumer-side economic stimulus package, which is what mostly shielded us from the global wake of the GFC. The United States government instead went for corporate socialism – that is, they saved the big deregulated banks that started this mess. And the United States’ economy hasn’t yet fully recovered. Analysts are already predicting that more bubbles are about to burst.

The tragic thing is that the Australian public is notoriously complacent on the serious issues, instead preferring heated debate on whether or not we should allow the government to discriminate against same-sex couples. Of course we shouldn’t let them discriminate against anyone – such discrimination is clearly an unabashed act of civil regressivism – but we should be mindful of the larger issues. We progressives really need to be paying attention to closing the financial gaps as well. Capitalism does have its strong points and I’m not opposed to it, but unregulated capitalism is dangerous. We on the left used to be all about the mixed economy and fair trade, what the hell happened to that?

Remember guys, Michael Moore’s Capitalism was released globally for a good reason.

*Thanks Simon McWaters for bringing that to my attention! (Go back)

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