Discussion in 'Economics' started by LalNarayan, May 17, 2007.

  1. “More jobs, better pay, and unforeseen productive potential” is what the Australian Federal Government and business lobbyist groups have promised Australians from the ‘workchoices’ Legislation.

    But what are these laws really focused on improving - productivity or profits? Profits of course!

    We can all agree that improving productivity is fundamental to sustaining long term economic growth. Australia’s new industrial laws provide businesses with access to a ‘flexible’ labour market where workers are forced to accept lower real wages and working conditions. The rationale behind this is that flexibility and lower labour costs will increase employment and lead to economic growth which will inevitably benefit workers in the long run.

    However, the answer is NOT to simply introduce radical reforms which diminish the collective bargaining power and rights of workers.

    If you pick up your “Introduction to Economics” textbook and read up on labour markets, you will recognise that the key drivers of productivity are in fact investment in ‘technology’ and ‘skills’!!!

    A technologically advanced economy armed with an army of skilled workers allows it to operate efficiently to produce more and better quality output.

    The only effect these new laws will have is to promote inefficient, labour-intensive industries which does nothing to promote productivity in the economy.

    So back to the question of productivity or profits. This answer IS simple…

    Is there really any benefit to the economy from these industrial reforms or is it just another attempt by corporate Australia to “steal from the poor and give to the rich”?
  2. There is a theory that society is cyclical and is led by certain ideals and always in this order: Laborer, Warrior, Intellectual, Acquisitor.

    Today we're in the Acquisitor stage where the laws and morality all support the pursuit of riches. The Laborers eventually get pissed off enough and revolt against the materialism and wealth disparity.

    It's happening across the planet; today government is no more than a tool of the corporations and the masses are getting screwed.

    eg. Iraq is about profits, not some silly appeal to "spreading democracy".

    Find a book by Ravi Butra.