Reposting this as a separate thread to encourage debate: Simon Antonio Vallone argues that he Agrees with Gillards cuts because theres onoly so much money to go around and supposedly there is no other option - In response: This is the problem with modern Labor. We are locked into a policy of small government. It started with Hawke and Keating. And now not even the prominent leaders of the Socialist Left will openly oppose this anymore. That means every time theres an important new program - we rob Peter to pay Paul. National Disability Insurance Scheme counterbalanced by attacks on Sole Parents. Gonski reforms counterbalanced by attacks on Tertiary Education. And of course we want to be seen as responsible - so we buckled under the pressure and support $3 billion in welfare cuts. The bottom line: We need to break with small government if we want to be progressive. There is NO other progressive choice. Over the medium term (lets say 10 years) we should aim to increase expenditure on welfare, social wage and public-financed infrastructure by 5 per cent of GDP. THEN we will be able to DELIVER instead of a mindset and strategy of DEFEAT. (one step forwards, two steps back.) And winning government only to implement neo-liberal policies is just DEFEAT by another name. Again: Simon say theres only so much money to go around: That is again assuming theres no choice but small government. But Increasing revenue/expenditure by 5% of GDP would release $75 BILLION. AND quite apart from that $45 BILLION go to superannuation concessions ALONE... (on memory by comparison about $20 billion goes to the Aged Pension) SO plenty to be saved/reallocated with super concessions also - on top of progressive new taxation.... So lets say we could eliminate half the superannuation concessions cost - thats about $22.5 billion; and expand progressive taxes by 5% of GDP. That adds up to about $95 billion in an economy of about $1.5 Trillion (last figure that I recall from a while back)... That could go to Gonski, NDIS, deep and extensive pension reform, public investment in infrastructure (transport, energy, water etc), big investment in public housing to make a roof over ones head affordable again; Big reforms in Medicare - including dental, physio and optometry; Progressive restructure of the HECS system; real improvements in foreign aid; re-fund legal aid.... Thats just the tip of the iceberg... AND keep in mind that efficiencies from public financed infrastructure and natural public monopolies would flow through to the whole economy... That is good economic policy as well! Again: Andrew Scotts new book is instructive to the alternatives to small government as epitomised by the Nordic Social Democracies. See: publishing.monash.edu/books/nl-9781921867927.html
Posted on: Wed, 19 Nov 2014 05:55:21 +0000
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