Day to Day Politics: How to create 50,000 new jobs.
Thursday 12 October 2016
1 The ABIX Roy Morgan Daily News ”Newsletter” is delivered to my mailbox daily. In the main it carries articles from The Australian and the Australian Financial Review. This morning it had one by Joe Kelly and Sarah Vogler.
”The business sector says the Australian Labor Party should reconsider its commitment to restricting a tax cut to businesses with turnover of $A2m rather than the Federal Government’s proposed threshold of $A10m. Tony Greco of the Institute of Public Accountants notes that between 90,000 and 100,000 businesses that boast turnover of $A2m to $A10m have employees and are more likely to use tax relief to take on additional staff than businesses that are below the $A2m threshold, as many of them are sole proprietors”
The thing that struck me about the article was how journalists can be so stupid. In implying that 100,000 businesses are ”more likely’’ to take on staff, they have immediately solved the employment problem. Even if half of them took on one person it would result in 50,000 new jobs.
Unless I can be shown some proof of this, or some modelling that suggests how many people are likely to be employed, then I can only conclude that the Institute of Public Accountants and The Australian are peddling falsities. It’s called propaganda. For example what is the cost of the tax cuts versus possible jobs created? At the moment the Government is adding to Australia’s debt on a daily basis. How it can afford Tax Cuts of this magnitude is beyond me. All around the world governments are realising that old trickledown economics no longer work but we have a Government trapped in a time warp.
”There of those who like to have political opinions yet conveniently leave out the political consequences when forming them”
2 I wasn’t aware that our Prime Minister was not using the official residences of Kirribilli House in Sydney and The Lodge in Canberra. Both remain empty but are still a cost on the public purse. Isn’t it about time a decision was made to place both these buildings in some sort of historical trust.
3 The Essential weekly Poll again gives it 52/48 to Labor. I can only conclude that the Australian public is easily pleased.
4 Good to see the challenge by four former MPs – Labor’s Barry Cunningham, Tony Lamb and Barry Cohen, and Liberal John Moore – seeking a big boost to their entitlements was lost yesterday.
Yes the retired pollies have lost their high court challenge over reduced post-parliamentary perks.
What a bloody shame.
5 The Trump saga gets more outrageous by the day. It is said that tapes, far worse than those of last week exist, and show Trump in an even worse light. (If that’s possible) The Guardian reports that.
”Metro-Goldwyn-Mayer studios, which owns the rights to the show, and The Apprentice creator Mark Burnett are facing mounting pressure to make public the footage. But on Monday, MGM and Burnett said in a joint statement to the Guardian, that they do ‘’not have the ability nor the right’’ to release the material, citing ‘’various contractual and legal requirements”
6 I saw this headline on The Guardian website ”New research: Abbott and Turnbull the worst economic managers since Menzies, ” and because I’m a fan of the author of the piece, Greg Jericho, I thought I should read it.
The article suggests that contrary to the widely held belief that the Coalition are the best party for economic management, in fact Labor are..
”research by the Australia Institute reveals that across a broad range of economic measures, the Abbott/Turnbull government has performed the worst of any Australian government since Menzies took power in 1949. The institute’s paper also notes that historically there is little correlation between ”business friendly” policies and economic performance.”
My thought for the day.
”Politicians who change their minds aren’t necessarily seeing the light. They might just be feeling the heat”.
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Of all the possible reasons for hiring a new employee, having received a tax cut is one of the stupidest.
There is one, and only one, reason a business hires: because having the new employee contributes to profit.
If that situation exists a business will hire.
If that situation does not exist, then no business on earth will hire an employee it cannot profitably use just because it came into a little extra cash, whether due to government largesse or or an unexpectedly profitable trading period, or any other reason.
Businesses only hire staff they can use.
That’s it. Period.
The coalition’s usual suspects have been sent out to tell gullible Australians and an unquestioning and complacent media that “by not supporting a plebiscite, Labor have set back marriage equality for at least three years.”
Is that true, well of course it isn’t . What Barnaby and others are saying is that they will do everything they can with their one seat majority to prevent the matter being debated or coming to a parliamentary vote and they will, in defiance of the Menzies Liberal tradition, deny their own members a free or conscience vote.
What hypocrites !
Selling more goods or services to more customers with more cash will grow a business ..
The private sector has become unreliable as the provider of secure work. With the ‘flexibility’ that has been given them by the Work Choices / Fair Work laws, there is really no need for them to hire anyone full-time. Workers are treated as another ‘just in time’ input by casualisation, short-term contracting and the option of labour hire. We are back in the days of the ‘Hungry Mile’ except people no longer stand on the street corner hoping to be hired. Many are sitting by the phone, dressed for work and hoping to be called today.
Furthermore, there are plenty of jobs out there – for Work for the Dole and for volunteers. Unfortunately our society has not chosen to pay people to do them.
Also try this article by Alan Austin outlining the LNP superiority (not) in running our economy.
As for Trump? There has been much speculation regarding the habit he has developed of audibly and visibly sniffing during the two debares. Pee in the cup time maybe? Carrie Fisher, who counts herself an expert in the field of chemically induced sniffing, has opined the Donald definitely has a problem! Dutch courage perhaps?
Now wouldn’t that be juicy?
Thanks for information John.
It is appreciated.
We should not be pursuing jobs growth or any other type of growth. In fact, we should be doing just the opposite and the economy be damned. Mankind’s survival depends on us reversing the damage that we have already done.
The propaganda is based on economic horse shit. Any economic system that requires constant growth is doomed to fail. It is an inescapable fact of the exponential function.
“Now more than ever, Gaea wants for us to cut the bullshit and speak out as if our lives depend on it. Because they do.” — Deb Ozarko
Put as simply as possible, only a growth in sales will result in additional staff. There will be no additional sales unless there is more spending – that is more people in full time work. It’s a Catch 22 that can only be solved by government via public infrastructure spending.
Rob Holmes and Anthony Element, you are correct. I have been screaming this at my right-wing neoliberal friends for quite some time now. It is their reliance on “supply side” economics that is the problem. As you have indicated, it is DEMAND, not supply, that drives employment. There are exceptions of course, such as developing a whole new product category where supply then leads demand, but it is demand that sustains it else it becomes a failed product.
About time. We need more article of the likes of Jericho’s.
Darren I have been bleating at my right wing friends that Kelly O’Dwyer’s cafe’s toaster does not attract customers either.
The mystical thinking that somehow a new expensive toaster will make people magnetically drawn to a particular cafe goes with the whole supply side theory.
Besides who in their right mind would pay to employ someone new rather than pocket the tax benefit?
It reminds me of an example given in the high school biology text, The Web of Life, used to explain unscientific thinking, where there was a belief, for a time centuries ago that if you left a sweaty shirt in a box overnight magically mice would appear. They called it “spontaneous generation of life”.
From hereon I may refer to “spontaneous generation of employment”
“spontaneous generation of employment”
I like it.
One thing I know for sure The Conservatives are intent on blowing out the budget sky high. So as to implement tough welfare reforms. They will blow it out on all their pet projects. Then they will raise their hands and say “well we had to do it” . Watch this space; though we know it’s It’s all IPA Ideology.
The Australian auto industry provided, directly, and indirectly, about 200,000 jobs.
These jobs are about to go overseas, due to the LieNP govt.’s unwillingness to sustain them, unlike the US and every other country which remains an auto manufacturer.
Retaining those jobs, at the cost of a subsidy less than the US provides (on a like for like basis) would have meant a whole lot of PAYE tax collected, GST collected when EMPLOYED people buy stuff, not to mention taxpayer money NOT being paid out unemployment benefits, or to those bludgers making a fortune pretending to find people (non-existent) jobs.
You would think it was a no brainer wouldn’t you?
Superior economic managers ?
I don’t think so.
Here’s a novel idea. Why doesn’t our government buy Holden or the Ford plants and start making new environmental cars.
And now I see on the news crawl that we are being encouraged to ask our doctors if we really need that extra test?? Sussan Ley has been banging on for ages about how we are all buying too many prescriptions and seeing our doctors too often. Don’t these idiots understand that every time they try to cut back an inductry they create greater unemployment? I am pretty sensitive to the health industry cutbacks at the moment having had several tests for a tricky diagnosis this year and more to come. If I were to say nah! I don’t think I need that biopsy or CT scan what then?? Just assume death is inevitable?? I don’t know a single person who buys more prescribed medicine than they need (or a doctor who prescribes excess) or sees a doctor just for a hangnail or goes to a specialist for recreation. This government is so deep in the accounting and so shallow on the purpose of a government, that being to support the country and its people.
Sussan Ley is having a bad run having said before the election that she was keen to see the Medicare GP rebate freeze lifted but was rolled by the Treasurer : almost instantly she was put into ‘witness protection’ and has been silent since, until today.
We know that the GP rebate freeze at $37 was frozen by Labor as a ‘temporary measure’ in 2013 and the freeze was extended by the coalition to 2014 and subsequently extended by the coalition to 2020. This follows the coalition’s attempt to introduce a GP co-payment of between $5 and $7 in 2014 under the woeful P. Dutton as Minister for Health ; this was defeated by the Senate. However, the coalition were committed to a co-payment and have now forced most GP’s to introduce a charge that is in fact a co-payment as they cannot go through to 2020 without an increase .
We know that this government will never take no for an answer and they will get their co-payment by hook or by crook and gradually they will kill Medicare as a universal health system.
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