August 2013
Mixed messages from Abbott on Tasmanian jobs
The Opposition’s pledge to create jobs in Tasmania could be undermined by its plan to reduce the size of the public service, a new analysis by The Australia Institute reveals. The analysis shows Tasmania could lose more than 200 jobs under the Opposition’s planned public service job cuts. The Australia Institute used historic separation rates
QLD job losses dismissed to make way for China First mine
The Queensland government’s approval of Clive Palmer’s latest coal mine and rail project shows a blatant disregard for the thousands of jobs that will be lost as a result, according to The Australia Institute. Waratah Coal’s own economic impact statement shows the China First mine will see 3,000 people losing their jobs, primarily across Queensland.
PR spin is big business
When politicians lie, make things up or simply get important things wrong, we take for granted that it is the role of their political opponents to highlight such errors. Our politicians are so focused on each other’s words that a mere slip of the tongue can become a news story for days. This isn’t so for
Massive change ahead, but trust paramount
Australian universities have been reaping the benefits from taking international students for years. But is that the way it will always be? What if the countries those students come from turn the tables on the cash strapped western universities and ask them to bid for the work?
July 2013
What’s choice got to do with it?
The financial disadvantage Australian women will face in retirement has nothing to do with whether they have a family, according to new research by The Australia Institute. The paper What’s choice got to do with it? found that women retire with substantially less savings than men, even if they don’t have children or care for
Someone’s silver lining
Prime Minister Kevin Rudd’s announcement that the carbon price is now a quarter of what was forecast is good news; the question is, for whom? Rather than crippling, the impact of the carbon price is barely even irritating for most polluters. Compared with the impact of the high exchange rate since 2007, the carbon price
The remaining agenda for free traders
Australia used to have very high protection rates for its manufacturing industries. Historically tariff quotas on motor vehicles meant that Australian car prices were double the prices for equivalents overseas. Many other manufactured goods were sold at multiples of the prices in overseas markets. Australia like many other countries imposed very high tariffs on most
What the rich would do to avoid tax
Is economics a science? When we teach economics students, we usually tell them that they are learning about “the science of the efficient allocation of scarce resources”. But when we listen to public debate, often economists don’t sound very scientific. While it is often said that science can’t proceed without failure, it’s rare to hear an
Profits from forests? Leave the trees standing
In debates about climate change and the mitigation of greenhouse gas emissions, there is a widely-held belief that market mechanisms, like the Labor government’s carbon pricing scheme, will reduce emissions in the cheapest possible way. As a matter of pure theory, this is correct but, in practice, it depends on what is included and excluded
Thinking of the children while forgetting about us
When it comes to future generations it seems that we can never be too generous. But is this generosity coming at the expense of current generations? In Canberra, when it comes to job losses, it seems the answer is ”yes”. Consider the Australian National University’s approach to its finances. The ANU is owned by taxpayers
Abbott keeps us guessing on public service job cuts
New South Wales, Victoria and Queensland could lose well over a thousand jobs each under the Coalition’s planned public service job cuts, according to new research from The Australia Institute. The Institute has launched an analysis of the economic impacts of the Coalition’s proposed public service job cuts, and is today releasing some initial findings.
Business should be wary of cuts
Last week, the newly installed Prime Minister Kevin Rudd challenged Tony Abbott to a debate about public sector debts and deficits. If it goes ahead, it would likely be a rare respite from the slogans that have haunted Australian public debate for the past few years. But the debate that we should be watching is
June 2013
Pouring more fuel on the fire
The federal government is pouring an extra half a billion dollars into taxpayer-funded subsidies to the mining industry, research by The Australia Institute has found. The Institute’s new paper Pouring more fuel on the fire reveals the booming sector has been propped up even further over the past year and now receives $4.5 billion from
If we build it, they will come, and take the profit
Confusion and contradiction have become the norm in our topsy-turvy political landscape, but the recent decisions by the ACT and NSW governments about how to fund infrastructure must take the cake. Here in the ACT, the Labor-Greens government is set to embrace a ”public-private partnership” to build its promised light rail project. The Liberals in
Why we should care about carers
Imagine if health and community sector workers wore high-vis vests; our streets, our shopping centres and even our airports would be full of them. We might even begin to think of them as the engine of job creation. But they don’t wear such things and we don’t think such things and the result is a
Conservative austerity can worsen debt malaise
Do Tony Abbott and Joe Hockey know how badly conservative governments are managing their economies in Europe? While Australia ”struggles” along with gross domestic product growth of just below three per cent and unemployment rate of 5.7 per cent, economic activity in the eurozone declined by 0.2 per cent in the first three months of
There’s nothing nostalgic about a budget
A lot of the debate in Australia reflects concern about our future and how budgetary pressures are likely to evolve. The backdrop of the discussion is a profile of the predicted population in 40 years, what that means for expenditure and how we should be preparing for that outcome. The intergenerational reports have provided a
Silence of the logging lambs
Last week, under the guise of a forestry “peace deal”, the Gillard government committed $350 million of new industry assistance and other handouts in exchange for the Tasmanian government passing legislation that imposes an unprecedented restriction on free speech. There is nothing new about Australian taxpayers subsidising native-forest logging, but there is something unique about the
Imposed silence a threat to…whom?
Are freedom of speech, freedom of association and the freedom to protest left-wing or right-wing issues? While Senator George Brandis was thundering away this week about the importance of a free press, I’m not sure his liberalism stretches to supporting Julian Assange and the desire of WikiLeaks to ”let the information free”. Similarly, while the
Tasmanian Forests Agreement: liberal society needs an alternative
Fred Gale’s article, Tasmanian Forests Agreement: deeply flawed, worth backing, provides interesting insights into the views of one segment of the Tasmanian community that supports the Tasmanian Forest Agreement. However, he fails to fully grasp many of the fundamental reasons for continuing opposition to the deal and its associated legislation. Most notably, there is no
Silence on peace deal is telling
Two weeks ago, I explained the consequences of the Australian Conservation Foundation, The Wilderness Society and Environment Tasmania support for the so-called ”forest peace deal” in Tasmania. The deal obliges them to cease all protests that might impede the ability of native forest loggers to sell their woodchips, take active steps to help silence other
Hidden ‘costs’ with every choice we take
Economists are often accused of knowing the price of everything and the value of nothing. Consumers, on the other hand, are assumed to have good knowledge of both. Indeed free-market economics rests more heavily on the assumption that individuals know what’s best for them than on any other assumption. While it is relatively clear that
May 2013
Business hypocritical on government debt
The Chicken Littles are at it again – scaring us about the level of government debt and the deficits that bring about debt. Gina Rinehart has claimed that the present level of government debt ‘is simply unsustainable’ and that ‘Australia had to take action to avoid following Europe into economic misery’. Ms Rinehart should know
Reducing food waste – and greenhouse gas emissions
Climate change and food security are among the biggest problems facing the world today, and the fact that an increase in the former means a lot less of the latter simply makes both problems even more urgent. While the overlap in the consequences of these two problems might be obvious, what is less clear is
Making sense of government priorities
Between the lines is the Institute’s selective analysis of the policies and politics affecting the wellbeing of Australians. This edition looks at the Resource Super Profits Tax, government advertising and missing out on government assistance.
National economies cannot be compared to household budgets
Contrary to the speeches made by many politicians, national economies are not like households. Indeed, the household management analogies that politicians often use to explain their approach to budgetary policy are rarely useful or appropriate. The way the Coalition is using the analogy is simply bizarre; they seem to have confused micro-economics and macro-economics. While
Those income tax cuts don’t look so good now
Federal government budgets are always strange affairs. They are billed as fact-based, hardnosed economics, when in fact they are far more about political theatre and posturing. While the budget is supposed to reveal the economic credentials of a government, most economists are left shaking their heads. Take the debate around the surplus. Both the Government
Has Labor’s tax aversion left them on the verge of electoral defeat?
Regardless of the result of the next election, the ALP will hold an inquiry into what went wrong. How on earth, they will ask, could a government presiding over low unemployment, low inflation, low levels of public debt and a triple A credit rating be seen as poor economic managers at a time when the
Swan leaves us guessing with confused budget
Confusion lies at the heart of Treasurer Wayne Swan’s sixth budget. Does he want to be a big spender or a low taxer? Is he a Keynesian who is relaxed about the budget deficit, or is he a fiscal conservative determined to rein in public spending? Who can say?
Budget blow out a legacy of tax cuts to the rich
Tonight’s Federal Budget would more than likely have returned a surplus, if the raft of income tax cuts introduced by the Howard/Costello Government had not been pushed through, a new analysis by The Australia Institute reveals. The Institute used NATSEM modelling to calculate the full extent of the structural changes that those tax cuts have
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