By Ric Testori
With the Australian Federal Budget coming in a month or so, what can we expect from our government and opposition parties which are both fully committed to the false neo-liberal concepts of fighting budget deficits and accepting unnecessarily high levels of unemployment/underemployment? My answer is “Not much”.
At the same time, I see and admire so much thought and effort being given by a handful of activists and thinkers associated with Modern Money Theory (MMT). And then I receive several new messages and memes from other activist groups such as GetUp who it seems are actively working against these very people that I admire so much. I joined GetUp and donate to them because I wanted to help everyday Australians have their voice over the noise and alt-truths of the mainstream media.
How disappointing it is for me to see GetUp continuing to push the same neoclassical economic bullshit in its own campaigns. They complain that the LNP have increased the “national debt” without considering how much worse things might be if spending on welfare and services were cut to reduce that inconsequential number. They fight hand and nail against tax cuts for the middle class and corporations without considering that taxes do not fund government spending. By giving honour to the stupid “deficit” lies they undermine everything they say they are fighting for. They continuously compare the LNP´s claim of “better management” to their apparent inability to control debt levels, without considering that the increasing debt is a result of the automatic stabilizers (Newstart etc) which are the only things keeping us out of a serious depression.
I can understand that MMT is not yet a platform supported by GetUp, but surely they can gain a little education in the matter of economics and stop fighting against us. They can stop supporting the false, orthodox neoclassical bullshit and speak honestly and truthfully about the necessity for budget deficits in appropriate times (like now).
These are the policies GetUp have launched as part of their Brighter Budget campaign:
1. Reform negative gearing.
2. Reform superannuation tax concessions.
3. Introduce the ‘Buffett Rule’.
4. Scrap the capital gains tax discount.
5. Cut fossil fuel subsidies.
6. Impose a super profits tax on banks.
7. Introduce a ‘Tobin Tax’ on high frequency financial transactions.
8. Place a duty on wealthy estates.
All of these policies seek to increase tax revenues, although (to give credit to their wording) the reasons given are mostly to increase fairness and combat inequality. But by making the campaigns lopsided against wealthier taxpayers and corporations, they almost guarantee the creation of a strong opposition against their implementation and their ultimate defeat.
A far better and more effective campaign would surely be to educate everyone, including activists, journalists and politicians, that taxes do not fund government expenditure. And that the concept of a “national debt” and similarities to household budgets are totally meaningless when applied to our fiat currency issuing federal government. As long as terms like a “balanced budget” are given power, force and meaning within our community there can never be fairness or honesty in any budget from any Australian government.
By ignoring Modern Money Theory (MMT), the GetUp organisation is playing directly into the hands of the neo-liberals who are clearly in charge of both LNP and ALP fiscal policies. Not even the Greens acknowledge the total failure of neoclassical economics to manage, describe or make reasonable predictions for the real world we live in.
Not even the glaringly obvious benefits and desirability of a federal Job Guarantee are mentioned anywhere in GetUp´s literature. The horrors and costs of involuntary unemployment (or underemployment) do not seem to exist as a policy worth consideration or mention.
For anyone looking for more information on MMT:
Prof Bill Mitchell – http://bilbo.economicoutlook.net/blog
Why Minsky Matters – L. Randall Wray
The 7 Deadly Innocent Frauds of Economic Policy – Warren Mosley