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The Economist's view on the election (1 Viewer)

stamos

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(This article is taken from the economist, an international paper.. it seems more objective than our media, which is why i think it's a decent read. Incidentally, I still reckon i'll vote for Labor.)


John Howard reconsidered

Australia votes on October 9th. There is no compelling reason for a change.

Three years ago, when Australia last went to the polls, we said it was time for a change. We applauded the achievements of John Howard, during the two three-year terms as prime minister, in maintaining an open and competitive economy and reforming the tax code. But we worried about signs that his reformist zeal had withered. More damningly, we deplored his willingness to pander to Australia's xenophobes by pushing back over-loaded refugee ships from its shores and forching them to deposit their human cargo on the bleak shores of Nauru and Papua New Guinea.

Australia's voters took a different view, awarding Mr Howard a third term and a slightly increased majority. Now he is seeking a fourth, a feat previously accomplished only by Bob Hawke and Sir Robert Menzies. The polls show a result too close to call. Considering the huge domestic unpopularity of the war on Iraq in which Australia has been a valuable participant, that is no mean achievement for Mr Howard. And we must note that, in the run up to this vote, there has been no crass attempt to steal the headlines by harsh treatment of refugees or other vulnerable people.

The reasons Mr Howard looks a better bet than he did last time are only in part a function of the prime minister's qualities. They have at least as much to do with the uncertainties surrounding his charismatic Labor challenger. Mark Latham has the virtues of youth and vigour. He is famous for once having broken the arm of a taxi-driver in an altercation, and his fondness for colourful language is refreshing. But the flip-side of youth is inexperience: Mr Latham has been perty leader for only ten months, and in Parliament for ten years; and he has never held federal office. His tendency to make policy on the fly exasperates his associates and delights his opponents. It was in just such an unguarded moment that he committed a future Labor government to bring Australia's troops home from Iraq.

Iraq convulsed Australia. A clear majority of its citizens believe the war to have been wrong, and demonstrations against it were the largest in the country's history. But Mr Latham's suggestion has not benefited him much. Mr Howard has been able to depict it as "cutting and running"- which is exactly what it is. By pulling out in the face of terror, the governments of Spain and the Phillippines have already sent a terrible message to those who cut off the heads of their victims and post their atrocious videos on the internet. Mr Howard's determination to support the effort in post-war Iraq, even in its darkest moments, is one reason to think the better of him.

The other is the economy, which has continued to defy all expectations. It is now in its 13th consecutive year of growth- and growth in excess of 3% a year at that. Despite a government tendency to indulge in vote-winning give-aways, the budget is still in surplus. Mr Howard is guilty of making rash tax consessions that have encouraged the purchase of property for investment. This has inflated the property-price bubble. But the bubble has yet to burst, and in the meantime Labor has made some disturbing noises about its own economoic plans. In particular, Mr Latham has raised serious concerns about how he would handle Australia's unions. Labor has promised to restore centralised collective bargaining, scrapping the system of individual workplace agreements that were introduced by Mr Howard and have helped to raise productivity. This time round, the case for change is distinctly uncompelling.
 
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Not-That-Bright

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exactly... taking away awa's is a terrible thing.
I posted up here before about them because my parents having just given all their workers awa's, which they believed benefitted both the hard workers AND the company its self were to be taken away under a labor government..
I asked why it is that labor wants to get rid of these, and i didn't recieve and answer.

It doesn't make sense to me that they would fold to the greens in tasmania allowing a union to fall into the hands of howard... yet at the same time are making pro-unionist stances (which are really... 1960's-80's concepts).

This Mark Latham is a mysterious bloke, and the annoying this is if he does get into power (which i believe he will) that we don't know what we're in for, maybe this is the type of intertia which alp supporters often accuse the australian public of but i do believe that its a justified worry.
 

walrusbear

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interesting article
i disagree with his call on us staying in iraq though

btw, not-that-bright, i'm definite howard will win, as much as i want a labor government. dw about that.

how do AWAs work exactly? i know very little about the whole thing. i'd always seen unions as important for the working class... esp with american corporation burgeoning in australia
 

Not-That-Bright

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AWA's allow employee's/employers to negotiate individual contracts.
Now although some large corporations (ie, mc donalds) are using awa's to totally rip off teenagers they do serve a good purpose.

My parents are required as they do government contract work to give their workers travel allowance, to pay for petrol, car use, etc.
However my parents have now given some employee's their own cars, which they drive to and from work. Now my parents use an awa to negotiate and say 'we won't give you travel allowance, but we will give you a car which we will give you a petrol card to fill up the car on us, this car can also be used for personal matters as long as it is kept clean etc etc', so basically both people are better off.
The alternative is that my parents have to take away these cars...etc..etc
 

walrusbear

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ok

so is AWA better for smaller business?
because i can see that system being abused the complete motherfuck in larger factory settings. does the liberal government aim to completely abolished unions?
 

Not-That-Bright

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No the liberal government doesn't want to get rid of unions, they got rid of unions making it a requirement that u join the union to work in that career..

The liberals simply allow for individuals to negotiate their own contracts, these are then submitted to be reviewed... i can't remember exactly who reviews them tho i'm sorry.
 

Not-That-Bright

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unions are kinda bad... they usually help the less productive workers..
My parents give 'productivity' payments to some of the workers on a basis of wether they've been working hard (most of them are on it), however if they joined one of those unions the workers that aren't productive would probably also be placed onto productivity.

unions were good back in the 50's etc when employers generally weren't looking after there employee's, unions have lost alot of power lately, yet have working conditions gone down? are workers being treated worse?
 

walrusbear

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i'm sure there are strong cases of bad working conditions, low pay, abuse etc.

and i guess this is another of those things where ideology counts.
it is a romantic notion to think we can gauge productivity individually.
i can see it working in smaller companies, but without the safety of a collectivised form of representation i have no doubt in my mind that larger companies will exploit the power to 'gauge productivity' to a shocking degree.
with the growth of corporate power many people could be exploited terribly.
 

Not-That-Bright

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Many people were exploited by militant unions.

I think unions have their place, but i'd like to see a model for new unions.. that take less of a radical approach, I believe that unions should be there to work with employers/employee's to achieve the goals of the organisation and the personal goals of the employee's.
 

Rorix

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walrusbear said:
it is a romantic notion to think we can gauge productivity individually.
I disagree. It's simple maths.

Let's see, if I start working 10 hours a day instead of 8...
 

dangerousdave

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Not-That-Bright said:
No the liberal government doesn't want to get rid of unions, they got rid of unions making it a requirement that u join the union to work in that career..

The liberals simply allow for individuals to negotiate their own contracts, these are then submitted to be reviewed... i can't remember exactly who reviews them tho i'm sorry.
From memory, I think its the Australian Industrial Relations Commission (AIRC)
 

jameseginton

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Lets recall what Latham wants to do to unemployment,
"Reduce unemployment to below 5%"
Sounds nice but then we will see inflation and an increase in interest rates. Please, how would he achieve this. Its impossible. Any economist could see this. I hope we all read the fron page of the Australian today. Australian business want a coalition Government far more than labor. So you start to see the economists views are misguided. If there is high inflation but low business confidence you've just run the country up the creek. You see Latham's economic problem, he has no idea on economic management. Let us also not forget he hasn't, still, submitted any of his policies for costings. Whats he hiding?
 

Ribbon

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jameseginton said:
Lets recall what Latham wants to do to unemployment,
"Reduce unemployment to below 5%"
Sounds nice but then we will see inflation and an increase in interest rates. Please, how would he achieve this. Its impossible. Any economist could see this. I hope we all read the fron page of the Australian today. Australian business want a coalition Government far more than labor. So you start to see the economists views are misguided. If there is high inflation but low business confidence you've just run the country up the creek. You see Latham's economic problem, he has no idea on economic management. Let us also not forget he hasn't, still, submitted any of his policies for costings. Whats he hiding?
What do you mean he hasn't submitted any of his policies for costing? 15-20 costings for labor policies were released by the department of adminitration and finance yesterday (while I was at work, in parliament house) which means they were submitted 2 weeks ago (which is the standard turnaround period for costing). I also read a press release from Labor yesterday bagging Howard because some of his costings were delayed as Dept admin & finance wanted more info from him, and 3 weeks later the costings still arn't out (so howard has been slack in giving them the extra info, if he has at all)
 

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