[Published in Pearls & Irritations today 25 June. My pre-election attempt (the previous post) didn’t make it.]
Stratospheric housing prices are perhaps the most critical domestic issue in Australia. Not only are a collapse of the housing bubble and a recession now threatening, but homelessness and rent stress, unaddressed and exploited, can quickly fester into ugly politics. The elephant in the room is the excessive money created by under-regulated commercial banks.
Housing prices are a prime driver of severe inequality and a serious threat to the stability of the Australian economy. Rises in interest rates threaten to collapse the very high levels of household mortgage debt and bring on a serious recession. The dream of home ownership is disappearing for many.Continue reading →
As Menzies foresaw, we have had economic anarchy, and both security and progress have disappeared.
A spirited contest of ideas has already started regarding how we emerge from the coronavirus shutdown. The Prime Minister is talking about ‘snapping back’ to what we were before. Some would like to use the crisis to jump to essentially an authoritarian corporate hegemony. Others would like to see a more sharing society with a more active government and embedded in a healthy natural world.
We are highly unlikely to just snap back, but if we want a more caring, equitable and durable society then we need to get clear about what needs to be done. Some are allowing that neoliberalism is dead, but few seem to be clear about what might replace it. Going back to something like our postwar system might be a good start, but we can do better.
It took on the most riven, brutal and monumentally incompetent rabble since Federation and still could not manage to beat them. This is a profound failure that requires a profound explanation. There is one, though it goes against decades of received wisdom.
The problem is the economic ‘reforms’ imposed by the Hawke-Keating governments are a failure. Our anaemic economy and divided society are their continuing legacy.
These claims are of course heresy. They sully the revered memory of Larrikin Bob. They contradict the economic and political mantras of the past thirty five years. Yet the evidence is clear and has been readily available for some time.