11 December 2016, The Guardian, On climate change and the economy, we’re trapped in an idiotic netherworld. The shrieks of horror that follow mentions of pricing carbon show politics remains wedded to the belief that economic growth trumps concerns of climate change. This week was a prime example of how economics and, by extension, politics doesn’t cope very well with the issue of climate change. The news that Australia economy went backwards in the September quarter was greeted with alarm by politicians and then used as a reason to push their policy barrow. And most of the barrows were piled high with coal. The treasurer and the prime minister in their press conferences on Wednesday made great mention of the need to keep electricity prices low for the economy to grow. Malcolm Turnbull especially was in full Tony Abbott 2010 mode out of a desire to cover the silly back flip on the issue of investigating whether or not to introduce an emissions intensity trading scheme. When asked about the prospect of GDP growth going backwards he immediately responded by suggesting the issue was for Bill Shorten to “explain why he is proposing to increase the price of electricity”. Never mind that such a scheme would more efficiently price emissions than does the current system, for now we remained trapped in an idiotic netherworld where any mention of pricing carbon (no matter how oblique) must be greeted with shrieks of horror, with the prime minister leading the chorus. And while you do wonder if Malcolm Turnbull ever looks in the mirror in the morning and asks himself how it all came to this – or whether he first rings Cory Bernardi to ask whether he is allowed to look into the mirror and ask such questions – the broader issue is that this netherworld is one that inherently sees action on climate change as a negative for the economy. And by contrast, the economic impact of anything that will cause climate change is seen as inherently positive. Read More here
Tag Archives: Economy
6 December 2016, The Conversation, Australia’s political elites are fiddling while Rome burns. Australians are used to the vulgar antics and empty point-scoring that pass for debate in federal parliament. But little could have prepared them for the current descent into pure farce. Politics divorced from political reality The US has been engulfed by a political tsunami few predicted and many are struggling to comprehend. Much of Europe is still weathering the storm of an unprecedented influx of refugees at a time of high unemployment and little prospect of economic growth. Financial markets, climate change negotiations and great power relations are precariously poised. Amid this turbulence, federal parliament’s last sitting week for 2016 was devoted to the backpacker tax, legislation to bring back the Australian Building and Construction Commission, and the political future of Attorney-General George Brandis. There has never been a time when the disconnect between political elites and the public interest was greater than it is today. The major parties seem uninterested or unable to respond to a drastically transformed political agenda. And so the disconnect grows wider by the day – and the contradictions ever sharper.Read More here
30 November 2016, BIEN, Catalonia (Spain): Catalonian Economy and Tax Office presents profound study on social policies, featuring basic income. In the Spanish region of Catalonia, serious efforts are being made to reduce poverty and to reduce inequalities. Last week, on the 17th of November, the Catalan Economy and Tax Office presented a thorough study on social policies, which includes the contributions of 30 academics and other experts and technicians. The document points out that current restrictions on the Catalan regional government public policies are stalling necessary changes, such as the implementation of more redistributive measures. This is due, in part, to the fact that the main tax revenue is managed by the Spanish State. The Catalan regional government is making attempts to address poverty and inequality, with the 2017 regional budget considered to be “the most social ever”. Under the new budget, more tax will be collected from both large property transfers and non-productive assets, and put into a budget that surpasses all other previous budgets in terms of social spending (education, health and social affairs). Despite this, Catalan officials recognize that the government should do even more to reduce poverty and tackle inequalities. Although Catalonia’s poverty rate (19%) is lower than the Spanish average (22,1%), it is still above the European Union’s average poverty rate (17,2%). Catalonia also faces a persistently high unemployment rate (11,2%), despite the economic recovery in recent years. The document presented by the Economy and Tax Office in Catalonia recommends profound changes to the regional social benefits scheme, which has been inadequate in poverty alleviation and prevention. At one point, it refers to basic income as a possible solution to this structural social problem. The regional basic income would amount to an unconditional allowance of 7471 €/year for every adult citizen, plus a 1494 €/year for every child (under 18 years of age) in Catalonia. According to the study, replacing all current benefits which are valued below the basic income amount would save around 90 thousand million euros per year, in 2010 numbers. The study also states that basic income would reduce inequalities and allow young people to enjoy a larger degree of freedom and emancipation. Read More here
26 November 2016, Climate News Network, Bolivian water crisis as glaciers vanish. Bolivia has declared a state of emergency as climate impacts shrink glaciers and leave cities without water. The government of Bolivia, a landlocked country in the heart of South America, has been forced to declare a state of emergency as it faces its worst drought for at least 25 years. Much of the water supply to La Paz, the highest capital city in the world, and the neighbouring El Alto, Bolivia’s second largest city, comes from the glaciers in the surrounding Andean mountains. But the glaciers are now shrinking rapidly, illustrating how climate change is already affecting one of the poorest countries in Latin America. The three main dams that supply La Paz and El Alto are no longer fed by runoff from glaciers and have almost run dry. Water rationing has been introduced in La Paz, and the poor of El Alto − where many are not yet even connected to the mains water supply − have staged protests. The armed forces are being brought in to distribute water to the cities, emergency wells are being drilled, and schools will have to close two weeks ahead of the summer break President Evo Morales sacked the head of the water company for not warning him earlier of the dangerous situation, but the changes produced by global warming have been evident for some time. Read More here