Blogotariat

The Basics of Modern Money

Angry Birds Approach to Understanding the Modern Economy

Previously we examined the Treasurer’s opinion piece from the Fin Review with our progressive and modern monetary frame and now we examine the message contained within.

From that frame we learned the Treasurer at least admits we are not investing enough in childcare and perhaps schools.

The Government is currently reducing its ‘real spending growth’ thus is removing the real income effect from Australian households and businesses. This is a deliberate lowering of investment in Australians.

Phil Coorey asked a good question at Morrison’s Press Conference Jan 5th 2020, taking the PM by surprise with his unexpected tack, when he asked the PM if, seeing that the PM belives that reducing Australia’s 1.3% world contribution of Greenhouse Gas emissions to zero would have no effect on Climate Change, then would Morrison pressure Trump to reduce the emissions of the USA. The answer from Morrison was of course no he wouldn’t.

If I was at the Press Conference I would have asked Morrison

#LibNatClimateApology

What I really think is that all Federal Liberal and National Ministers since 1995 should publicly apologise to the people of Australia for seeking to delay, undermine and prevent effective action on Climate Change.

Emergency information

Fires Near Me (NSW), Vic Emergency (Victoria)

Context

These photographs were taken on 28 December on Bells Line of Road, which runs between western Sydney and Lithgow. Bells Line of Road is the northernmost of two road crossings of the Blue Mountains between Sydney and western NSW.

As one of the longest and hottest days of the year dawned, Australians woke up to the news that two volunteer fire fighters, Geoffrey Keaton and Andrew O’Dwyer, are dead. The photos, published by the NSW Rural Fire Service, of each man smiling proudly and holding his baby for the camera are gut wrenching. They are western Sydney dads in their 30s, Aussie everymen.

Michelle Grattan from The Conversation puts it best.

When five former fire chiefs held a news conference on Thursday to urge the federal government to take more action on climate change, it was a challenging moment for Scott Morrison.

Originally posted at Australian Real Progressives

By now you have probably noticed Australian Real Progressives has a rather heavy focus on jobs.  This is because 2 million Australians are looking for work or more hours.

“So far as it can humanly contrive, never again will the dole queues be seen in this country. Never again will competent workmen stand idle for months and years while limitless work remains to be done. Never again will young men drift hopelessly from town to town and from State to State, searching for the jobs which, in all this wide land, did not exist for them.”

Ben Chifley, 1949.

It is a stark and painful reminder of the follies of the last century that what was a powerful statement of factual accomplishment in 1949 is today seen as the dreams of the delusional.

In my previous post I outlined why jobs don’t come from rich people: capitalism runs on spending (sales), not savings. Job opportunities appear naturally when businesses forecast sales growth and expand output accordingly (and similarly disappear under reverse conditions). When viewing the economy as a whole, we can observe that private sector investment responds to rising incomes and spending as entrepreneurs expand output to match market demand and banks have confidence lending. In the absence of spending growth, accumulated savings do nothing.

Talking Politics

I have just discovered the excellent Podcast Talking Politics which discusses UK, US and European and International Politics.

You must subscribe to Talking Politics. It is put together by David Runciman of Cambridge University and provides commentary and analysis in the best British academic tradition – informed, fair, objective, funny. It is absolutely brilliant.