Tag Archive for 'welfare policy'

Unfairness and Abbott’s parental leave non-policy

A lot has been said about Tony Abbott’s parental leave speech yesterday and today on this blog, on these two threads. As I suspected would occur, most of the qualifications and the actual non-policy aspect of the policy were not reported in today’s press, and the general line was that Abbott’s scheme was ‘better’, because it offered income support for a longer period and at a replacement level of income, rather than the minimum wage.

That’s highly questionable – or rather, it would be ‘better’ for those who are already relatively advantaged, and worse for many who are not.

Let’s put some facts on the table.

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Guest post: CPD on Reforming Australia’s Hidden Welfare State

Imagine a welfare scheme that gave minimum wage earners nothing, but handed out $11,000 a year to those on the top income tax rate. Surely if any political party ever suggested such a scheme they would be run out of parliament and have their doors kicked down by commercial current affairs programs.

Yet, such a scheme already exists, and almost nobody says anything about it.

The Centre for Policy Development brings you new research and analysis from Dr Benjamin Spies-Butcher and Adam Stebbing that explains the inequities buried in Australia’s complex web of tax expenditures. Their paper provides costed alternatives to one of the most expensive tax breaks – the flat 15% tax on compulsory superannuation.

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How might the Senate tinker with the stimulus package?

Simon Jackman has the good oil on what Bob Brown and Steve Fielding are putting on the table as Senate deliberations on Kevin Rudd’s fiscal stimulus continue. Both are emphasising the unemployed and job creation (with Brown arguing for green measures as well). I suspect that this manoeuvring might factor more into what comes out of the Budget sausage machine. The government has clearly been shifting its rhetoric on the unemployed, and I would expect the minors to be told that people on benefits will benefit as a result of the Henry Review. So it may be that some commitments might be made for future measures in exchange for current support. That would still, however, give the minor party Senators a real chance to shape the response to the economic downturn.

Unemployment – no longer just for “dole bludgers”?

On the same day the Reserve Bank Board meets after its summer break, Federal Parliament resumes tomorrow.

Among the bills which will be considered is one embodying the loosening of penalties on jobseekers who “breach” agreements with employment services providers. This legislation is having its second run around the parliamentary paddock, having been rejected last year in the Senate by the Coalition and Nick Xenophon.

It’s been interesting to watch the shift in political rhetoric regarding the unemployed, now that it’s not just about the underclass in long term unemployment and those who are low skilled. With middle class types and “aspirationals” either losing their jobs or fearing that they will, all of a sudden it’s politically respectable to make a case against things like having to exhaust all your savings and redundancy pay before your qualify for benefits.

It’s intriguing to speculate on what this tells us about the real reasons for the carrot and stick stuff during the boom, though of course the developments are welcome. Part of the proof of the pudding, though, will be whether there’s any increase in benefits in the stimulus package which is widely expected to be announced later in the week.

Guest post by Andrew Crook: In a class of their own – Obama staffers and social change

In the 2005 “dramatic documentary” The American Ruling Class, big oil heir turned Harper’s editor turned armchair socialist Lewis Lapham narrates the career choices confronting a group of shiny young Yale graduates. With their future at the crossroads, Lapham asks, will the nation’s brightest pursue private riches or commit to a pious life of public service?

Lapham, playing himself, leads his empty vessels through the streets of Manhattan, counterposing up-scale parties with wait staff slaving for tips. It’s a savvy piece of emotional manipulation designed to guilt the young rich into acknowledging the class structure that, above all else, got them to where they are. In one party scene, the hubris is intoxicating as a tipsy Ivy League cohort prepares, like their parents, to ascend to the heights of commerce, industry and influence.

Of course, this constructed ‘choice’ transcends the personal, reading as an obvious allegory for the nation as a whole. If the American working class has nothing to lose but their chains, Lapham clearly hopes a new generation will hand them the bolt cutters — a naive appeal to altruism perhaps, but one that continues to resonate as the economy tanks. Lapham’s choice is now more pressing, in that conditions have got much worse, and much easier in that elite opinion is again extolling the virtues of public service, always a potent (if submerged) strain of America’s DNA.

Continue reading ‘Guest post by Andrew Crook: In a class of their own – Obama staffers and social change’

We’re all rooned!

Malcolm Turnbull, whose peregrinations around themes on economic management I documented earlier, might actually be revealing some method in his madness. Possibly the regular calls for bipartisanship always follow the beatups and ranting and raving over alleged government incompetence. It may be designed to suggest that he’s always willing to assist, and it’s only the partisan refusal of his expertise by the government that is the root of every conceivable problem. On the other hand, I might be reading a lot more into Turnbull’s frenetic pontificating than is justified – simply by reading too much reportage of his endlessly expressed views. Maybe he’s picking up some bad habits from Twitter?

In any event, it’s been interesting to see some more clarity emerging about the issues surrounding various types of investment funds freezing withdrawals – including the fact that there are 190 000 Australians with such investments. Turnbull has certainly been carrying on as if the problem is of much greater dimensions than that. Bernard Keane raises one salient issue in Crikey:

The demand by cash management funds and mortgage trusts that they also get a government guarantee is one of the more shameless try-ons in an era of particularly refined rent-seeking. Why don’t we guarantee all listed companies while we’re at it? It would be heartlessness of titanic proportions to dismiss the concerns of shareholders about their investments.

It’s also becoming clearer that some of these investment vehicles have been in some trouble for quite some time, though it’s worth noting that in most instances, investors still have access to distributions and dividends even if their capital is temporarily not liquid. But it does look as if the “all the fault of the government and that bank guarantee” narrative is – at best – vastly overstated. Meanwhile, as Keane also observes, the News Limited papers are full of heart-tugging stories about hardship which conveniently support the opposition’s “narrative”. Continue reading ‘We’re all rooned!’

The stimulus package and fairness

Just before last year’s federal election, I read Neal Blewett’s Cabinet Diaries. The book is a good read, but I was also interested in reminding myself – in the dying days of the Howard Era – what a Labor government felt like. One of the things that really jumped out at me was regular discussions around the Cabinet table about assistance for the unemployed, and several of Keating’s measures to stimulate the economy were targeted to people on the dole, among others. Those with longer memories might recall Labor’s opposition to Malcolm Fraser’s “fight inflation first” austerity regime in the late 70s. Mike Steketee has a very good column today which shows just how much things have changed in the era of the deserving poor (and not so poor) and the undeserving poor. He rightly points out that some of the pensioners receiving payments will have substantial assets and incomes of up to $66000, and self-funded retirees with incomes up to $50000 for singles and $80000 for couples will also receive the one off payments. It would be very hard to argue that they are the folks in the community doing it toughest, and as Steketee suggests, there’s no guarantee the money will be spent rather than saved.

What we’re seeing here, I think, is a combination of Kevin Rudd’s very conservative personal values and political calculation.

Continue reading ‘The stimulus package and fairness’

Review into the NT Intervention: on not reading and stereotyped debates

I have to confess at the outset that I haven’t read the report – I am really busy with work at the moment and I simply don’t have time (or energy when I do have time), but I wanted to comment instead on the practice of not reading. I was struck by this when reading Mark’s post from last night about the reactions of Gerard Henderson and Kevin Donnelly to the report released by Stuart Macintyre’s history curriculum panel. Donnelly, when interviewed on Lateline (and why is it necessary to interview him – for balance? … so that the substance of the story can be obscured by inscription in a “history wars” frame – what happened to journos perhaps reading the report and reporting on its substance not a press release?) couldn’t actually point to anything in the report which would support the line he wanted to run about a “black armband view” and wanted to mutter something dark instead about Labor being tricky about pretending not to be as left wing as they are. Incidentally, that’s the cunning new strategy that Chrissy Pyne came up with the other day, if we believe his ghost writer Glenn Milne.

Similarly, Hendo appeared to be reacting to a press release. Now these characters are held up as “public intellectuals” and their assemblage of titles (thinktank director, educator/consultant, etc) supposedly represent authority and expertise. Obviously, they’re just going to push the political line they run with constantly, but what’s happened to the idea that you should actually inform yourself about what you comment on?

(Hendo, I suppose, doesn’t have time, what with having to write 50 emails a day to Robert Manne about what they each thought about Indonesia in the 1960s, or monitoring the ABC all day for “bias”…)

Something very similar is operating with the reaction of Warren Mundine to the NT Intervention Review. Andrew Bartlett asks some pointed questions:

Yet almost all the attacks seem to be ignoring the evidence about what has been happening on the ground, and the views of the people that live there, instead treating policies such as universal compulsory quarantining of welfare payments and scrapping the permit system as sacred totems which cannot be touched, regardless of the evidence.

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Productivity Commission interim report on paid parental leave

I discussed some of the issues around paid parental leave in an earlier post. The Productivity Commission has now released its interim report, recommending a model which would see the government pay for 18 weeks of parental leave at the level of the federal minimum wage (with 2 weeks for partners, and with employers only contributing compulsory super). Some criticism has revolved around the failure to mandate payment by employers of current salary levels as a top up, but it’s likely that this would occur anyway for skilled workers, and the whole point of the scheme is to extend rights that skilled workers already enjoy or have the bargaining power to access to all.

The baby bonus would be abolished and replaced with a $5000 parental allowance.

We’re They’re all neo-liberals now?

The think tank culture is weird. Although there are certainly think tanks around that put some effort into commissioning and fostering quality research, the origin of the beast lay in the business of shaping and shifting public debate through the media and influencing pollies. There’s nothing wrong with that, as it were, provided that we understand that the research produced may not always be peer-reviewed (CPD, with whom I’m associated, does subject its policy papers to peer review) and in particular we understand not just the ideological commitments of individual think tanks but where their funding comes from. That’s why there are legitimate questions to be asked – including but not restricted to the propensity to push climate change denialism – about the reluctance of some organisations such as Gerard Henderson’s Sydney Institute to even admit that disclosure of funding sources is in the public interest.

Because one of the things think tanks do is provide a ready source of op/ed copy, so-called “public debate” can go down some quite odd paths. Most recently, in Australia, the bizarre theme about the Enlightenment (and apparently the “good” Scottish Enlightenment as opposed to the “bad” French Enlightenment) which was articulated to climate change denialism, and which also prompted some public weirdness from Craig Emerson. It’s noteworthy that just as the Rudd v. Hayek wars are really just proxies for a dispute about underlying policy orientations, that none of the gibberish that has come out of the new MSM meme of the month has anything much to do with scholarly study on the role of the actual Enlightenments in history or in philosophy. It’s not really a “battle of ideas” at all, just a convenient hook for some very tired positions to be hung on.

But everyone in this game – “progressive” or “liberal” or “conservative” – has a vested interest in pretending that what is being staged is some sort of “battle of ideas”. Hence we have Per Capita, a particularly neo-liberal bunch of progressives with strong connections to some of the Blairite Third Way orgs in London, holding a “Consilium”, whatever that may be, accepting most of the premises of the CIS’ Enlightenment-fest. And we get PC fellow Dennis Glover writing an op/ed for The Australian spruiking his mob’s definition of Kevin Rudd’s “reforming Centre”. The new ideas in question (and the PC’s website features slogans such as “Hard Decisions”, “Human Capital” and “Practical, Empirical, Fresh” demonstrating their desire to be the house intellectuals of the Rudd revolution) aren’t actually new. It’s all standard “social democracy = markets + human capital theory + communitarian welfare policy” Blairism. It’s just getting a run in Australia for the first time, and there’s no doubt that it is getting a run – with initiatives such as the marketisation of Victorian TAFE and Julia Gillard’s musings about vouchers being directly linked to this agenda. And the “truancy welfare quarantining” seems quite redolent of Blair’s first term – when backbenchers revolted over welfare cuts. And, as argued here recently, there’s evidence that this sort of thing misses the point in addressing the actual causes of poor school attendance.

Continue reading ‘We’re They’re all neo-liberals now?’

On Rage: Germaine Greer reviewed

Well, as I noted on another thread about Germaine Greer, I’ve bought and now read On Rage. I’d like this post to stick to discussion of the merits of her arguments, which I continue to think has been something largely absent from most of the debate to date. I also think that very few people who’ve rushed into print have actually read her book, and instead taken the odd comment here or there that she’s made in the course of promoting it and projected all sorts of things onto her.

Even those who have seem to be reacting to parts instead of the whole – for instance, Marcia Langton, describing the remarks about her in the book as an “astonishing attack on me”. That’s quite odd, because Langton is being challenged rather than attacked in the book – challenged to agree with Greer’s view that – on the basis of the evidence – the literal appropriation of Indigenous women’s bodies by white men, something Greer documents with footnoted citations from both historians and contemporary sources – is part of the reason for Indigenous male rage. All the rest of what Langton says – accusations of “a 1970s style argument”, a “panoply of protest slogans deployed as social theory” and so on – unless I’m missing something, appears misdirected, or at least based on inference rather than the text itself. On p. 88 of the book, any reasonable reader would see that Langton is not the one being accused of “collusion” with the state, what she took umbrage at, and that in fact the point being made is that the differential impacts of gender on the colonised is still used by whitefellas as a lever to avoid responsibility and to divide people. There’s a disagreement of view, but not an accusation, and it hardly justifies Langton’s claim that the essay is “racist”.

What Greer is doing in On Rage is a provocation to the degree that it’s asking a range of people differently positioned within Australian culture to reflect on the totality of what has occurred and how ineffectual slogans are – and there are slogans within the talk of the “responsibilities” crew as well – in the absence of both understanding and a genuine coming to terms with the parade of extraordinary horrors that is the story of Indigenous dispossession. Greer’s essay doesn’t make for comfortable reading, and that’s the point. Langton may be justified in taking umbrage at some of the things Greer has said in the course of promoting it, and I can quite understand that, but I think in this instance it’s vital to separate the force and quality of the argument in the text itself from the personality of its author. Much of what has been published and said elsewhere, for instance in Greer’s Sydney Morning Herald op/ed adds to (and in a way detracts from) the argument in the book, rather than reproduces it. Greer might be her own worst enemy in this case, but that doesn’t absolve her interlocutors from reacting with their own rage, or at least spleen.

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Mutual obligation and Indigenous policy

In the wake of discussion of Andrew Forrest’s proposal for the creation of 50 000 full time jobs for Indigenous Australians (discussed here at LP) and Germaine Greer’s remarks on the continuing force of history in shaping Indigenous responses to state initiatives (discussed here and see the video of last night’s Q&A), I thought it was worth linking to a paper prepared for the Australian Education Union by UTS Indigenous academics Larissa Behrendt and Ruth McCausland. The specific topic they examine is welfare quarantining and schooling outcomes. I’d recommend anyone interested read the whole thing, but the abstract has also been posted at Australian Policy Online.

As well as discussing the philosophy of mutual obligation (referred to as John Howard’s most significant legacy to social policy), the authors point to the lack of an evidence base for most policy initiatives in this area – something almost totally lacking in the research which justified Noel Pearson’s proposals for “family commissions” in Cape York, which is now being held up as a model for the rest of Australia. This appears inconsistent with Jenny Macklin’s disclaimers of ideological motivation and claims that evidence and “what works” would be the criterion for Indigenous policy. They also point to several studies which demonstrate that parental responsibility in sending kids to schools is at best only one factor in school attendance and outcomes, with the quality of schooling and child health also being very important variables.

The obvious conclusion to be drawn is that most policy initiatives in this area are at best blunt instruments. It also suggests that they are being driven by a new orthodoxy – arguments about “personal responsibility” and “social norms” being more assertion than evidence based. Most tellingly, perhaps, and here Greer’s comments are important too, is the suggestion that the obligation is almost entirely one sided and thus lacking in mutuality – and that the state is failing to put in place the preconditions for such experiments to have much chance of providing enduring outcomes. That doesn’t leave me feeling me feeling very hopeful about the prospects of closing the gap.