JOBS AND GROWTH?
In 1964, the International Labour Organisation (ILO) outlined the policy objective of full employment in their Employment Policy Convention (ILO No.122) which was adopted by signatory nations, of which Australia is one such nation.
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According to this convention, full employment ensures that: (a) There is work for all persons who are willing to work and look for work; (b) That such work is as productive as possible; and (c)That they have the freedom to choose the employment and that each worker has all the possibilities to acquire the necessary skills to get the employment that most suits them and to use in this employment such skills.
Part (a) refers to unemployment and part (b) or (c) refer mainly to underemployment.
In recent times the Prime Minister Malcolm Turnbull, Treasurer Scott Morrison and Employment Minister Michaelia Cash have said, “it’s not the Government’s job to find people jobs”.
This is another example of ignoring international agreements and it highlights the fact that these people don’t understand how the economy works.
To keep repeating the slogan “jobs and growth” is only perpetuating a lie. Losing your job, losing your home, isn’t something you shrug off as the “cost of doing business”.
Don Kelly, Kanahooka
INTERESTING TIMES AHEAD
Rather than dwell on Trump the person, objectionable as he may be, it could be more useful to consider some of his stated policies and their likely economic consequences for America and America’s erstwhile global partners.
These policies include an intention to provide protection for American manufacturing industries, as well as increasing government spending on infrastructure and at the same time reducing taxes.
The economic consequences of these policies will probably include the achievement one of his economic objectives, which is to reduce unemployment and get the American people back to work.
The protection of American industries will however require import restrictions and the prices of imports upon which American consumers largely rely will rise.
Reducing taxes whilst increasing government spending will also cause America’s already bloated budget deficit to blow out further.
This increasing deficit will need to be financed by further quantitative easing, which in effect means printing more money.
All of the above will be very inflationary and real incomes will tend to fall.
Increased inflation will also be likely to lead to higher interest rates and despite its status as a reserve currency the United States Dollar will probably weaken.
In the short run Americans may be happy with the consequences of Trump’s election but the longer term fiscal outlook for America is precarious.
Trump has a personal history of defaulting on debt repayment.
Not a reassuring trait in a President of the USA.
I would suggest that his promise to “make America great again,” is a hollow promise and will be to the detriment of its global partners.
Interesting times.
John Martin, Woonona
MINISTERS HAVE FAILED
Regarding the SA Olympic Dam power outage, had Energy Minister Josh Frydenberg and prior federal ministers responsible for the roll out of renewable energy done so in a statesman-like manner instead of the restrictive dribble out, there’d have been little or no electricity shortages.
Renewable energy, Mr Frydenberg, can never be tabled under as you say, “failed experiment” or a “disaster”.
It’s you, Mr Frydenberg, and like-minded ministers in cahoots with the big end of town who are failing us.
Brian Johnson, Gymea