It is indeed gratifying to note that a respected and economically literate academic sees through the Howard 'economic management' myth, and is prepared to write about it. As I have said elsewhere in these postings, it is high time that the Australian voter looked past the efforts of a publicly funded propaganda machine that has skillfully reduced economic debate to a mantra - ie 'labor can't manage the economy, only we can do that'- a use of mantra as an indoctrination tool that would do any esoteric eastern religion proud. The Howard years are a virtual litany of lost opportunities. We now have a country that is (as the treasures implies) 'balanced on an economic knife edge', tertiary education has reached the ultimate humiliation of relying on full fee paying overseas students to remain viable, research and development has been systematically starved of funding, individual Australian wage earners teeter on the edge of personal bankruptcy whilst the big end of town pockets ever increasingly massive bonuses for laying people off.
All this in the middle of an all time high commodities boom, a new federally centred tax system, huge budget surpluses, and an unprecedented sell-off of public assets - a 'never to be repeated' sale by definition. Vote them out Australia, and try to save what can be saved from the wreckage of a once proud independent nation.

Thanks Klaas,

This is a very comprehensive and informative overview of the fundamental state of the country under the stewardship of John Howard and Peter Costello.

However I do take some exception to the statement: "it is widely recognised that the economic management by the ALP in the early 1990s provided much of the groundwork on which economic progress could be built."

I don't share the enthusiam for Labor's past 'reforms' of the economy. Essentially, they paved the way for Howard's wrecking operation under way since 1996. Examples include:

* The deregulation of Telstra by Beazley led to partial and the full privatisaion of Telstra.

* Enterprise barganing, which has laid the groundwork for outlawing of 'pattern bargaining' under "WorkChoices" (See "WorkChoices and the future of unions" by Harry Glasbeek in the Spring 2007 Dissent magazine (http://www.dissent.com.au))

* The privatisation of retirement incomes in the mould of that undertaken by the Chilean miliatry dicatatorship under teh guidance of Milton Friedman.

* etc, etc.

I hasten to add that the choice between Labor and Liberal is still a very important one, notwithstanding these grave concerns about Labor's past record and have said so in the article "Can Labor bring about a just society?" of 24 September 2007 at http://www.onlineopinion.com.au/view.asp?article=6395

Other than this minor bone of contention, it's still an excellent article.

An article, which I have written, which attempts to grapple with some of the same subject matter is:

"Living standards and our material prosperity" of 6 September 2007 at http://www.onlineopinion.com.au/view.asp?article=6326

The myth that the economic boom is entirely due to minerals is the only card that labor has to counter the 10 years record growth. That the minerals boom has only occured in the last 3 years, and has added only about 1% to annualised economic growth in this period, indicates that we would still have beaten the growth of any other country in the developed world without it.

The real engine of growth has been the increase in productivity in the work place and exposing the old state owned bureaucracies to the market.

The economy has become lean, mean, and highly tuned. Putting a P-plater at the wheel and an apprentice under the hood whose policies are best suited for gravy trains (however well meaning) is ill advised especially as you and I are sitting in the passenger seats.

A new labor goverment will probably have the effect of making houses, land, stocks and shares more "affordable" but probably not by Australians.

Labor may have the high moral ground on many issues, but their "feel good" measure to remove AWAs leaves me with serious concerns as to their economic competence and thus our future.

It's all very well to criticise Howard and Costello for their endeavours. This article only presents a negative view of their efforts and shows no balance what so ever. But that isn't it's major flaw.The author has not one iota of a critical analysis of the alternative. Gillard or Swan as Treasurer, and indeed Rudd, given their error ridden and substance lacking performances so far are a very iffy proposition as economic managers.

Should the author wanted to be taken seriously as an independant commentator he should have addressed this very real voter concern. While Labor's history is merely just that: history, the future is what most voters will assess before casting their vote. In the absence of any consistant economic policy and indeed in the obvious and demonstrated absense of an understanding of the ecomomic mechanisms Rudd and labor will be in dire straits when voters start the process of assessing the policy alternatives.

Currently their only major concern and publicity in this area is who is going to be their treasurer...and that is not a good look regardless of how voters will assess Howard and Costello's performance

Reply to Shadow Minister'
Presumeably then, if we turned to a full slave economy, productivity would go through the roof, and the government would be seen as an economic miracle maker - all very well if you are not one of the slaves.
Any economic advantage claimed by the Howard government has been totally dependent upon an on-going erosion of hard won family oriented conditions of employment, and the now totally necessary involvement in the work force of both family partners, a situation in itself that has spawned a plethora of child-minding centres, government sponsored employment agencies etc all of which are factored into the 'lean, mean' economy. The Howard brand of economic success story depends upon throwing out the baby with the bath water. What is next - children back in the mines?

"Necessary involvement in the workforce"? For what? The bigger house (with the even bigger mortgage), the two modern cars, the 'good work clothes', the child care fees (the rest of us please subsidise)etc etc.
A little thought would show some (not all) families that it does not pay both parents to go to work or that the amount earned after the expenses could be saved with home-cooked meals, a vegetable garden (water recycled), walking the kids to school, catching public transport etc.
Perhaps part of the problem began with the idea that women had the 'right' to go to work. I don't care if they want to or not but it has now become a demand that they do and that is a different story because that would seem to be about earning to buy, buy, buy. We should make it possible for one parent (either one) to stay at home if that is their wish and we should view bringing up the kids as a career (and a worthwhile one at that).
We need to get over the notion of the 'necessary involvement in the workforce' and start thinking about the 'necessary involvement in bringing up the children and being involved in society' - something that too often goes out the window when both parents work.

UNDER-DEVELOPMENT? Howard knows nothing about GOOD ECONOMIC GOVERNMENT. I disagree with his polices on IRAQ, ON BURMA and with the AUSTRALIAN FARMERS.

I agree the farmers needed the "wider-package" but they need (as with the rest of Australia) "so much more" at ground levels. These Times Are Real.

AS far as I am concerned the present government is rowing a boat to nowhere, sinking the greater part of Australia. It has no understanding of true nation building and disables it's citizens rather than practicing valuable debate towards empowerment.

The Socialogy of Development or the Development of Social Development? (Gunter Frank)

Australia is at a cultural and political cross-road.

Costello especially is disappointing. So clever but it seems he has learnt nothing about sustaining a healthly economy. Noted I heard nothing suggestive on Burma, nothing long-term or of vision for the bush.

I have no doubt that the ALP policies are attractive, most of us know what is install and say BRING IT ON. I know it is to be the begining of a national promise we can ALL work with. We need to believe again in Australians.

Our focused well spoken rock star did a good job for clarity on the "climate change" last nite on LATELINE. All his lobby experience has paid off well -experienced- most consise handling on complex topic.

I was grateful as a concerned member of the Audience. The Jouranalist (tough) did a stunning job (Thank You). What Downer did the nite before ... suggesting porkys re: the UN "vote" crediblity and value is embarrassing - untruthful by comparision, and does Australia damage. It does not help productive progress.

Yes Wayne Swan, you are good for Australia, Yes Julia Gillard your voice is clear and strong and Kevin... may the dream for a "safer" world become Australia's work. Australia is a strong nation and I hope it is feeling savy about sorting out the mess.

Howard is isolated by the antic's of his parties lame practicing denials, slander and daffy-duck policies. I find them most erractic and humanly shameful by most accounts.

http://www.miacat.com/
.

Titanic?

For the Titanic metaphor to be relevant, the consequences for Australia are nothing short of total loss of law and order and imminent destruction.

Klaas has missed the boat so to speak.

The consequences of Howard's shortsighted stupidity are far greater than Klaas has entertained:

PEAKOIL is colliding with Howard's enforced population growth. By 2025 there will not be enough liquid fuel for armed forces and police to intervene in race riots and ethnic cleansing campaigns in our suburbs. Governments will stand back and watch. If for example the Iemma government plays true to its Italian roots it may well find benefits in fostering riots for certain political and economic gains. Already we have seen a lot of questions like whose electorate the riots started from, surrounding the Cronulla riots.

What all this means is that within a decade as we witness petrol prices reach the magic $10 per litre, Federal government will be too remote and powerless to be relevant. Mischievous state governments based on ethnic minorities and associarted property developer warlords will rule this country, without oil but with an iron fist. Mugabe's Zimbabwe and Pol Pot's Cambodia are not undue similies.

There are those in our society that look forward to this degradation of our nation. If we are to thwart them, first we need to stop immigration immediately. There is no point in using immigration for economic-marketing leverage when it is leading to a Zimbabwe dead-end. Second, we need to get better value out of Uranium. Value adding yellowcake to Pebble Bed Reactor fuels, with corresponding reactor research, will give at least 10X the return on our ores. Further it prevents yellowcake's use in nuclear weapons in a way which no dumb-signed sales contract can ever do.

continued..

Continuing..

So, whilst Howard has become a pest and we need Labor to take the reins, Australian's are rightly concerned that the ALP is too out of touch with the imminent dangers Australian's face both in world affairs and at home in our already overcrowded and violent cities.

It is no use to have Kevin Rudd and a band of green peacmakers like Peter Garrett, all starry eyed with polices shaped two decades ago let loose on a Nation which really is the Tiatanic headed for a bloody nasty iceberg.

Along with Rudd's positive social reforms we want positive nuclear policy and we want a stop to immigration.

We want a FUTURE.

Reply to Gym Fish

Slavery was probably the lowest productivity employment form ever. The most productive work places are those that have the flexibility to match the needs of the workplace with aspirations of the employees.

This goes counter to the labor movement who assume that they know what is best for the employees and that all employees aspirations are the same (one size fits all).

Telling the small businesses and employees that big brother knows best is not the answer to happy employees or productivity.

Slavery is alive and thriving all over the planet as never before largely thanks to the insidious impact of neo-liberalism and globalisation.

What word, other than 'slavery' would you use to describe the following situation, Shadow Minister?

(cross-posted from "Skills shortage imported workers vs local" http://forum.onlineopinion.com.au/thread.asp?discussion=1040)

In the industrialised Samut Sakhon "trafficked Burmese workers have been found working between 17 and 22 hours per day for as little as AU$10 per month, in the Ranya Paew export seafood factory. ...

"One woman peeled 18-20kg of shrimps per day for which the official rate set at 10 baht (approximately AU$0.37). But her female agent argued that agent's fees and the cost of bedding and food, gloves and hygiene facilities had to be deducted from her wage. She did not receive a wage for the first three months. Anyone, male or female, trying to escape, was beaten in front of others by guards patrolling the factory." (from "Mind the traffic" in the Spring 2007 edition of Dissent Magazine (http://www.dissent.com.au) by Melody Kemp.)

Workers suffered other humiliations including: for women, having their hair shaved, constant surveillance by CCTV and having guns held to their heads if they were considered slack.

(end-of-quote)

Decades after the commencement of the globalisation revolution, which promised to raise the living standards of the poor, these are the working conditions endured by at least tens of millions across the planet.

I have not doubt that John Howard and his supporters intend to make the situation described above commonplace in Australia, and this is already beginnig to happen now, thanks to the combination of 'WorkChoices' and the abuse of section 457 visas.

Go for it, Daggett, even though at 86 have never worked for anyone much, only my Old Man - former union man - just before the Depression who told me while working with workers never act like the bosses' son.

I did have it wrung into my ears from our workers, how without the unions the boss will always hold the whiphand or the big end of the labour stick.

Now with Howard chucking out the Arbitration Laws, and bringing in Work Choices seems simply a ruse telling workers that they now have people at the helm that they can trust.

Surely this is the first time in the whole of Australian history, anyway, that this has happened?

Cheers - BB, WA.

Daggett,

Did you read what I said?

Did I ever say anything to imply slavery was good or defensible on any level?

That shocking IR practises occur in third world countries is not in dispute, nor has it any relevance to the article or my commentry.

The 457 visa has been used to bring in skilled workers such as doctors nurses and engineers, most of whom earn more than the average salary and create work for existing residents.

In the last 30 years globalisation has reduced the proportion of people living at or below the poverty line from 60% to 30%.

The anti globalisation movement is like King Canute commanding the tide not to come in. At best it can be delayed, but like any force of nature it is inevitable.

Thanks Klaas.

In Klaas's past articles I have been quite critical of his ideas for electoral reform .... namely his thoughts and desire for non-compulsory voting which would simply deepen the democratic deficit . However, with this article Klaas proves he has class when it comes to dispelling this myth that the Howard Government’s performance and claims are of the “experienced hands” with their assumed “sound economic management”. Not just old blokes like myself but the majority of young people now see the Howard years as socially divisive and very much economically ...... the wasted years.

Shadow Minister,

Globalisation has destroyed the livelihoods of hundreds of millions who previously lived sustainably growing food for themselves. They lost their livelihoods because of mechanisation and the use of fertilisers and pesticides which are manufactured using our finite and depleting stocks of fossil fuels. Inevitably these agricultural practices must end, most likely with catastrophic consequences for many of the world's current population which has been allowed to grow to unsustainable levels as a result of the unsustainable food yields of the "Green Revolution".

However, in the meantime, one billion, that is one thousand million human beings, as of 2004, live in shanty towns on the edges of sprawling third world metropolises in desperate poverty with no economic role to play in our society, according to Mike Davis author "Planet of Slums". (See article in New Left Review of March - April 2004 at http://newleftreview.org/A2496 which has been expanded into a book of the same name published in March 2006 at http://www.versobooks.com/books/cdef/d-titles/davis_m_planet_of_slums.shtml).

It should be no surprise that those who obtain work are forced to endure the conditions in the Ranya Paew export seafood factory that I described above.

The statistics you give:

"In the last 30 years globalisation has reduced the proportion of people living at or below the poverty line from 60% to 30%."

... almost certainly bear little relation to the reality. This is because the indicators of living standard including the GDP and per-capita GDP fail to put values on non-monetary transactions in the rural economies that have been displaced by globalisation. They also fail to measure the true increases in the costs of living for displaced peasants forced to participate in the globalised economy. I have written about this deficiency in regard to Australia in my article "Living standards and our material prosperity" of 6 Sep 2007 at http://www.onlineopinion.com.au/view.asp?article=6326

Where some third world people may have attained middle class living standards, it is almost certainly at an unacceptable cost to the environment as well as to many other members of their national communities.

(tobecontinued)

(continuedfromabove)

Neo-liberals are highly adept at concealing the social, economic and environmental devastation caused by their economic doctrine by citing statistics such as those you have given above.

Until you show us the basis of this and how they also account for those one billion plus human beings now living in shanty towns, I don't see why your statistics should be seriously regarded.

I consider you protestations of objection to the slave-like working conditions of the Ranya Paew factory to be hollow, given this seeming attempt to downplay this picture with those statistics.

---

I commend to other readers the article "How Did We Get Into This Mess?" by George Monbiot at http://www.monbiot.com/archives/2007/08/28/how-did-we-get-into-this-mess/ which explains exactly what the role of neo-liberal ideologues is:

"Their purpose was to develop the ideas and the language which would mask the real intent of the programme - the restoration of the power of the elite - and package it as a proposal for the betterment of humankind."

---

I can't say whether or not we can succeed in stopping the insidious effect of neo-liberal globalisation, but if we don't our living standards, together with our planetary life support system, will almost certainly be destroyed.

In regard to 457 visas, their is ample evidence that they are being cynically abused by lazy greedy employers. If Howard had done his job instead of acceding to the selfish demands of Australia's wealthy elite to save on taxes by axing, directly and indirectly, Government spending on training, we would have little need at all for any skilled migrants.

Why are we importing IT workers when so any with degrees and experience are forced to work in menial low-paid occupations?

There is copious evidence of abuse of the 457 visa at http://www.rightsatwork.com.au/community/showthread.php?t=690

---

Bushbred, thanks for your encouraging words and pertinent observations.

Bushbred, I too doffs me' cap to you!

I too thank YOU Daggett. Would that I could post like you, but alas I aspire to the principle: "God give me patience; right bl**dy now!".

Oh! the shame of it...

With regards the 457 visa system being abused, I don’t know of any system that is not abused to some extent including GST, Medicare, centre link, etc, etc, etc. The question really is has the system overall benefited the country, and how can the abuse be controlled. With the 14000 or so legal immigrants to the country, many of which come in on the 457 visa, most provide desperately needed services, and their employment generally creates further jobs for lesser skilled residents.

The real threat to employment in Australia is the alternative to the 457 system, which is to ship the jobs off shore to cheaper more available sources.

With regards to GDP as a measure of growth, first year macro economics will run a student through the pros and cons of several measures, and it is universally accepted by economists that GDP (compensated for CPI) is the most accurate. If the GDP increases, there is prosperity, if it decreases, there is increased poverty and the correlation is almost 100%.

India in 1950 had a population of about 400m, virtually no industry, was a net importer of food and suffered from periodic famines and wide spread starvation. The population is 1B+, India is a net exporter of food, industry is booming with a growing middle class and food shortages are generally met by internal aid agencies.

Where’s the big bad bogie here? Most people then point elsewhere to Africa etc, where supposedly widespread corruption and bad governance has nothing to do with it.

Since the nineteen fifties, there has been much improvement in technology.

Tractors, able to do the work of 3 oxen, have become cheaper.

Computers have gone from a room sized, billion dollar contraption, to a 6 dollar chip.

Despite this phenomenal increase in fundamental wealth, most people in India are dirt poor., and land is more expensive, there is more pollution.

I'm sure for every extra thousand or so people, there is 1 extra member of the "middle class".

So statistically speaking, the middle class is growing as the country spirals downward towards oblivion.

Some economists make no distinction between GDP and GDP per capita, to the detriment of our fair country and its' citizens.
Your government sells public land to private enterprise, to build suburbs. It keeps demand high via immigration and baby bonuses, History will remember your Treasurer as an evil monster, far worse than any terrorist.

A major and institutional problem in Australia is biologically motivated mateship-grounded only opportunities if any at all.

It drags this English semi-colony back in the times of the First Fleet, effectively having jobs conserved for the privileged to inherit the work (and social status) only.

Regrettably, technology is not a throne might be simply passed on to a family member if even from Anglo-Saxon/Celtic tribe.

The article does not mention the problem of world oil supply, Peak Oil as it is also known. The increasing gap between what Australia consumes and what it produces will produce a huge balance of payments problem in the future. This is a grevous error by the current government.

Peak Oil will be addressed by the next federal govt as the date of Peak Oil seems to be settling heavily on 2010. However, Chinese consumption may make it feel like it arrives next year of the year after. The next govt will have their hands very full indeed.