Australia’s real economic challenge isn’t welfare dependency — it’s inequality

The economic inequality in Australia is the worst thing it has been in 20 years – if the aim is to improve living standards, our leaders should deal with it. Carl Rhodes.

Next month, work, trade unions, civil society and government leaders will gather to address the economic future of Australia Economic reform round table. The aim is to determine how to improve living standards for Australians.

For a delayed nation behind the economic OECD peers inequalityThe importance of the round table cannot be exaggerated. Productivity, economic flexibility and sustainable public budgeting will be the main themes.

In front of the round table, Independent Research Center (CI) It was published report provocative Leviathan Rampage: Government Expenditure Growth is a threat to the economic future of Australia. He claims that extreme government expenditures, welfare dependence and public service lead to an economic decline.

CIS has long been proud to be the castle of classic liberal ideaWith the spirit of basic neoliberal thinkers Friedrich Hayek And Milton Friedman.

The report reflects an unity of consensus that has been immune to the reform for decades. It is a commitment trade to the small government when it comes to neoliberal policy advice when combined with the advocacy of the bitch squeezing budgets that affect the most vulnerable members of the society.

The report is that today’s Australian neoliberalism has a lot to describe how today’s Australians see the welfare and productivity of today’s Australians.

Neoliberal belt

Robert CarlingIn CIS, the senior and the author of the report argues that the community expects too much from the government. It’s time to tighten the budget zone for the benefit of the country.

The authority warns that non -restraining government expenditures will lead to budget deficits, increasing taxation and low economic efficiency disaster.

Carling, the main criminal of expenditure problems, the National Disability Insurance Plan (NDIS). Australia is a “Addiction Culture”claims.

In the report, he defends:

He continued: “If the current trends continue, Australia will continue on the road to a European -sized prosperity state …”

He predicts this ominous:

He continued: “The culture of addiction and authority, which has been rooted before, will continue to spread and deepen.”

Populist posture

The report is recycling tired neoliberal tropics that accuse the most vulnerable to structural economic issues rather than an original contribution to public expenditures.

The hackneyed arsenal of the neoliberal economy emerges with a full talent. Welfare buyers are accused of the problems of the country, the maintenance economy is rejected inefficiently and government expenditures are called extravagant.

Although the report is light on originality, the populist pot, especially worrying, is particularly worrying. A lot has been discussed about the cost and value of the national disability insurance plan (NDIS). Considering the importance of many Australians for the welfare, this is an important debate.

This report is doing little to advance this discussion. Instead, he blames what he claims to be a growing Australians who call on social benefits. It’s not just prosperity buyers. Carling targets all Australia public service (APSemployees he accepts as) “Dependent on the government to live […] through public sector employment “.

Drunk sailors?

As can be estimated, conservative media commentators adopted the report.

John Kehoe critically enlarged Australia Financial ReviewEmphasizing this:

“The National Disability Insurance Program Chief Criminal.”

From Sky News– Steve price The report of the Labor Party “Spending a group of drunk sailors”. Audience how the state expenditures are “Disaster for our economy and democracy”.

Despite such non -critical reports, the CIS report is misleading and dangerous. The so -called arguments are slightly more than a thoughtless rehash of the most tired neoliberal economic orthodoxy.

Worst of all, the most needed citizens as a burdensome bludgers and the hard -working public officials as condemned to the ruthless practice condemned as government addicts. This is not just disturbing, it is reckless.

Australia is a low -efficient country

The CIS report focuses on changes in Commonwealth expenditures in the last twelve years, but cannot make international comparisons. Doing this reveals a very different reality and a reality that does not support CIS’s populist discourse.

A report Published by the Australian Social Services Council last week (Hasty) It confirms that Australia is the lowest tax country in OECD, which is measured as a GDP percentage. Similarly, the income tax paid by average workers in Australia is relatively low compared to other developed countries.

All this says that Australia is relatively good when it comes to balancing taxes and expenditures. If there is any bludger in the system, hardworking Australians or those who need welfare support. In terms of NDIS spendingMost of the problem with increasing costs stems from opportunistic entrepreneurs who abuse the system for special earnings.

Private business and public interest do not always interfere, billions of dollars Taxes that owe to the Australian Tax Office (ATO) that is not paid by private companies. Let’s not forget the fossil fuel companies that receive more than $ 10 billion of subsidies. This is a “Addiction Culture”?

What will be equality?

BD.“The spirit of self -confidence instead of expanded family support, philanthropy, charities, volunteering and state addiction”.

A nation that supports people in need does not create addiction; He attaches importance to his citizens and believes in the value of a fair and stable society. The real form of addiction that we need to worry about lies: throwing people out of the mercy of free market fluctuations and the philanthropy of the rich. This was never a way to justice.

While Australia is among the richest countries in the world, this reserve is unequal distributed. The first 20% of the Australians have 64% of the country’s reserve, and the highest 20% of the Australians earn about six times more, which earns the lowest 30%.

Between OECD nationsAustralia has 17th income inequality and the highest 19th. Economic inequality The worst thing that today has been in Australia for 20 years.

Australia faces real economic challenges, but the scapegoat of welfare buyers is not a solution-this is a distributor of attention. A more constructive way is to build a more fair, more inclusive economy that supports all citizens, not only those who benefit from inequality.

Carl Rhodes is a professor of business and community at Sydney Technology University. Five wrote book On the relationship between liberal democracy and contemporary capitalism. You can follow him on Twitter @Profcarlrhodes.

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