Penalty rates: Why should Sunday stay special?

Thu, 02 Mar 2017  |  

Click on the link to hear the podcast of me on The Minefield talking Sunday penalty rates, among other things, with Scott Stephens and Waleed Aly.

https://www.abc.net.au/radionational/programs/theminefield/penalty-rates:-why-should-sunday-stay-special/8310496 

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Late last week, the Fair Work Commission handed down its long awaited decision to reduce penalty rates for Sunday workers in fast-food, retail and hospitality.

Federal politicians promptly framed the matter in the predictable terms of the conflict between the interests of Capital and the interests of Labour, and took their sides accordingly. But is the tension between Capital and Labour – the sustainability of small business versus the rights of workers – really what is at the heart of this matter, or is there something deeper at stake?

One of the more conspicuous effects of secular modernity has been to de-sacralise or de-differentiate time: there are no more Sabbaths and no more holy days; leisure is more of an obligatory respite from work than an occasion to enjoy what is of greater worth; time is reduced to an undifferentiated commodity whose sole value resides in its ability to create more value. Within this logic, the very idea of ‘weekends’ cannot finally be anything more than quaint, an illegitimate leftover from a different age.

Questions of economic justice and the relationship between economy and society are, to be sure, central to the current arguments over penalty rates. But unless we revisit the relationship between time and non-economic conceptions of value, it is doubtful that any argument can long withstand the inexorable logic of capitalism.

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THE LATEST FROM THE KOUK

Employment - the odd one out or is the economy booming?

Thu, 19 Oct 2017

I am reluctant to bag and slag the employment data, because it is all we have when looking at the health of the labour market. But there are a few quirky bits and bobs in the news of the wonderful run of job creation over the past year.

Employment rose by a remarkably strong 3.1 per cent in the year to September, a fabulous result.

But, and it is a big but, the results are at odds with just about every other indicator in the economy. EIther they are misleading or the employment data are misleading.

One way to check it to have a look at the economy the last time annual growth in employment was above 3 per cent. This takes us to the period around 2007 and into early 2008.

In 2007, annual real GDP growth was generally around 4 to 5 per cent, as you would expect with such jobs growth. The economy was on fire!  In 2008, the CPI surged by over 4 per cent which is again as you would expect given the boom in employment. The RBA was hiking rates at an agressive pace, with the official cash rate hitting a stonking 7.25 per cent in 2008. Wow! 

What bubble? The financial sector is fighting fit

Tue, 17 Oct 2017

This article first appeared on the Yahoo 7 Finance website at this link: https://au.finance.yahoo.com/news/1897318-045821149.html 

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What bubble? The financial sector is fighting fit

Australia’s banking sector is in peak health and the household sector is having few if any problems managing its debt.

This is the good news from the Reserve Bank of Australia Financial Stability Report which effectively put the kybosh on the fear-mongers who continue to forecast a crisis in household debt, a crash in house prices and turmoil in the financial system and more specifically, the banks.

The key conclusion from the RBA was that “the financial system is in a strong position and its resilience to adverse shocks has increased over recent years.”

These are strong and direct words from the normally cautious RBA.

It also noted that the bank’s non-performing loans (bad debts in other words) “remain low” and bank profitability “is high”, which are the key indicators of financial stability and strength. The RBA went as far to say that “the banks also have ample access to a range of funding sources at a lower cost than a decade ago” which is fundamental to the functioning of the financial system. Nothing was presented that indicated current problems in the financial sector.

The RBA assessment can be tested from the markets, specifically bank share prices. Most evidently, bank share prices remain strong as the investment community continues to place its money where its mouth is when determining actual performance and even risks when allocating investment funds.