While the gas industry has been busy trying to tell you that we need more gas, we’ve been busy countering their spin with facts, especially in Western Australia and the Northern Territory.
However, not everyone is as enthusiastic as we are for the message to get out.
A billboard too far?
We wanted to let the people of the Northern Territory know the facts about gas, so we designed this billboard and tried to put it up at Darwin airport.
The Airport refused our business saying it was “negative” and “directed at one of its clients”.
On this episode of After America, political scientist Associate Professor Zim Nwokora joins Dr Emma Shortis to discuss the DNC and the Trump campaign’s failure to cut through against a new Democratic candidate.
This discussion was recorded on Friday 16 August 2024 and things may have changed since recording.
Guest: Zim Nwokora, Associate Professor, Deakin University
Host: Emma Shortis, Senior Research for International & Security Affairs, the Australia Institute // @EmmaShortis
Everyone loves avocados. From ‘avo-toast’ to the adorable Jellycat Amusable Avocado plush toy, avocados have captured the hearts (and minds) of consumers globally. 11 billion pounds of avocados were consumed globally in 2020 alone.
The Federal Reserve Bank of New York’s July 2024 SCE Labor Market Survey shows a year-over-year increase in the average reservation wage—the lowest wage respondents would be willing to accept for a new job—to $81,147, but a decline from a series’ high of $81,822 in March 2024. In this post, we investigate how the recent dynamics of reservation wages differed across individuals and how reservation wages are related to individuals’ expectations about their future labor market movements.
This would see products like period underwear and tampon inserters placed in the same category as vapes, gambling and gaming PCs.
This isn’t the first time federal policy has made menstrual products harder to afford.
People who menstruate, most of whom are women, fought for nearly two decades for the goods and services tax (GST) to be removed from sanitary products such as tampons. The campaign lasted from before the GST was introduced in the year 2000, all the way up until 2018, when state and federal governments finally agreed to act.
The decision to exempt sanitary products cost the budget $30 million.
This might sound like a lot of money, but in budgetary terms, it’s next to nothing.
While car sales data is not broken down by gender, few would contest that this tax break is mainly enjoyed by men.
And not just any men. The tax break only applies to new vehicles that cost over $80,000. Some of these utes cost up to $250,000, so we’re talking about very rich men.
There is widespread public support for banning gambling advertisements on free-to-air media because of the harm caused by gambling. The main objection is that Australia’s free-to-air networks, hit by declining revenues and fragmenting audiences, can’t afford to lose the money.
But there’s a simple solution.
A small levy on the many billions of dollars gambling companies extract from Australians could compensate the media for the lost revenue – with enough left over to increase funding for the ABC.
Such a levy would cost the gambling industry less than a quarter of a billion dollars a year.
That’s a tiny fraction of the money lost on wagering.
Gambling company revenues totalled $17.2 billion dollars in 2022-23.
Meanwhile, the industry spent about $239 million advertising on free-to-air TV, metropolitan radio, and online.
Therefore, a levy on gambling revenues of just 1.4% could replace all that lost advertising income.
Round it up to 2% and the government could replace some of the money the ABC has lost in budget cuts as well.
“Politically, this policy is definitely worth a punt, with good odds that it would be a vote-winner,” said Stephen Long, Senior Fellow at the Australia Institute.
“A 2% levy on the gambling industry, which represents a tiny fraction of the money lost on wagering, could compensate the media for any lost revenue resulting from a gambling ads ban. There would even be enough left over to replace some of the money that the ABC has lost in budget cuts as well.
“For the media and the Australian public, this represents a rare win-win scenario.
“Implementing such a policy would reduce the harm to the community that gambling advertising causes, while simultaneously guaranteeing a revenue stream for public interest broadcasting.
“The free-to-air networks could then sell the advertising slots the gambling companies occupied to other businesses while pocketing the levy as well, producing a revenue bonanza.
It pains us to admit that in today’s fast-paced world, there is constant pressure to be stylish and relevant. Take blue jeans for instance – the never-ending list of new trends or the infinite number colours, cuts and styles seem to justify our temptation. We are pressured to be new and different, yet forced to conform.
Amidst this desire, many of us are aware that the costs of our purchases are much more than the dollar sum at the check-out. The thought that our new pair of jeans is likely produced by an impoverished, underpaid labourer in South-East Asia lies dormant at the back of our minds, as does the knowledge that its production will emit somewhere between 33 and 80 kilograms of CO2 into the atmosphere. However, the vast distance between our everyday lives and the reality of hot sweaty factories and smoggy skies renders the gravity of our purchase insignificant. After all, what’s the hurt in just one more pair?
Accordingly, we can consider ‘blue jeans’ as a symbol of Western colonialism and capitalism, and a useful way to explore the impact of jeans and fast fashion on the climate and the oceans. Given the statistics, the ethical choice should be easy, but as expendable incomes continue to shrink, it becomes harder to ask consumers to pick the ‘right’ side in this dilemma.
On this episode of Dollars & Sense, Australia Institute Senior Economist Matt Grudnoff and Elinor discuss the government’s gambling reforms and new research showing that the wealth of Australia’s richest 200 people nearly tripled over the last two decades.
Each week on Dollars & Sense, we dive into the latest economic figures to explain what they can tell us about what’s happening in the economy, how it will impact you and where things are headed.
Host: Matt Grudnoff, Senior Economist, the Australia Institute and Centre for Future Work // @MattGrudnoff
Host: Elinor Johnston-Leek, Senior Content Producer, the Australia Institute // @ElinorJ_L
Bluetooth headphones are essential and addictive, you might even be using a pair now. Following Covid-19 pandemic headphones have become vital for work, while also being essential tools for personal privacy, in work, entertainment or fitness activities. These varied applications have made them indispensable in modern life, influencing work, leisure and well-being. Headphones can therefore be linked to the capitalist obsession with enhanced productivity and the modern desire for escape. Widespread headphone use has also garnered cultural significance with subcultures like hip-hop, making Bluetooth headphones fashion accessories and status symbols, which have established a thriving market for affordable and luxury models. This surge in popularity has made headphones the core of an industry characterized by rapid innovation.
This article was originally published, in slightly different form, on Strong Towns member Joe Cortright’s blog City Observatory.It is shared here with permission. In-line image was provided by the writer.
Columbia University Professor and former World Bank Chief Economist Joseph E Stiglitz joins Ebony Bennet on this episode of Follow the Money to discuss inequality and the rise of Trump, Australia’s “environmental deficit” and his new book, The Road to Freedom: Economics and the Good Society.
This discussion was recorded on Tuesday 13 August 2024 and things may have changed since recording.
Guest: Joseph Stiglitz, Nobel Prize-winning economist // @JosephEStiglitz
Host: Ebony Bennett, Deputy Director, the Australia Institute // @ebony_bennett
You probably have at least ten tote bags at the back of your cupboard. The humble tote bag has a knack of accumulating in a way like no other. Yet, while these reusable cotton bags may seem good in principle, they have a much larger environmental impact than appears at first glance.
On this special episode of After America, recorded live at the State Library of New South Wales, Dr Emma Shortis is joined by Professor Joseph Stiglitz and the Hon Malcolm Turnbull AC to discuss the role of inequality in US politics and dealing with the Trump White House.
This discussion was recorded live on Monday 29 July 2024 and things may have changed since recording.
Guest: Joseph Stiglitz, recipient of the Nobel Prize for Economics and Professor at Columbia University Business School // @JosephEStiglitz
Guest: Malcolm Turnbull, former Prime Minister of Australia // @TurnbullMalcolm
Host: Emma Shortis, Senior Research for International & Security Affairs, the Australia Institute // @EmmaShortis
Producing approximately 23 billion pairs of shoes each year, the global footwear industry is marred by significant environmental and ethical challenges. Despite the industry’s substantial output, only about 5% of shoes are recycled, leaving the majority to exacerbate landfill issues globally. Although not as prominently discussed as fast fashion garment production, the environmental footprint of footwear manufacturing is equally concerning. Production processes often involve toxic chemicals, extensive water use, and high dependency on fossil fuels. Additionally, factories are typically situated in developing countries to take advantage of cheap labour and lenient environmental regulations, contributing to a significant carbon footprint—1.4% of global greenhouse gas emissions, narrowly behind the aviation industry.
Inequalities of incomes and wealth in Australia have grown in recent decades and the tax system is making the situation worse.
The wealth of those on the Rich 200 list rose from the equivalent of 8.4% of the nation’s GDP in 2004 to 23.7% of GDP in 2024.
In 2020-21, capital gains exceeded all other types of income combined.
The estimated revenue forgone through the failure to fully tax realised capital gains in 2023-24 is estimated to be $19 billion.
Three types of tax reform could restrain the growth of wealth inequality in Australia:
more comprehensive taxation of capital gains,
the introduction of an annual tax on wealth above a specified threshold, and
the introduction of a wealth transfer tax.
Any one of these would make a big difference; all three would be transformational.
“Australia is getting more unequal. Wealth inequality is growing rapidly, and the tax system is making it worse. Australia needs new ideas and new policies to fix it,” said David Richardson, Senior Research Fellow at the Australia Institute.
“Growing economic inequality is making life worse for millions of Australians and holding our country back. The International Monetary Fund and others have shown how economic inequality tends to reduce a nation’s economic growth.
The wealth of Australia’s richest 200 people nearly tripled over the last two decades. In 2020-21, capital gains exceeded all other types of income combined. Tax reform is needed to address this problem.
Shortly after the collapse of Silicon Valley Bank (SVB) in March 2023, a consortium of eleven large U.S. financial institutions deposited $30 billion into First Republic Bank to bolster its liquidity and assuage panic among uninsured depositors. In the end, however, First Republic Bank did not survive, raising the question of whether a reallocation of liquidity among financial institutions can ever reduce the need for central bank balance sheet expansion in the fight against bank runs. We explore this question in this post, based on a recent working paper.
This article was originally published, in slightly different form, on Strong Towns member Michel Durand-Wood’s blog, Dear Winnipeg.It is shared here with permission. In-line images were provided by the writer.
As experienced elder states-people from both major parties slam the deal as disastrous for Australia’s long-term interests, it is clear that Australia should end its conciliatory deference to the U.S.A and instead begin advocating in our own national interest.
“Australians found out about this new deal via a release from the White House, continuing a longstanding trend of secrecy around an agreement that lacks transparency and accountability,” said Emma Shortis, Senior Researcher in International & Security Affairs at the Australia Institute.
“Secrecy is not security, and Australians have a right to know what the government is agreeing to.
“The AUKUS deal has been met with dismay by Australia’s Pacific partners. It badly damaged our relationship with the French government, undermined our multilateral commitments and relationships, and dramatically misinterpreted the trajectory of American power. It unnecessarily escalates tensions with China.
“Australia is unlikely to get these submarines. More importantly, we do not need them.
“The deal was merely an announceable for a government seeking to shore up its position before an election and wedge the opposition. It is an outrageously expensive, unnecessary plan that will probably fail. And even if it wasn’t all of those things, it will not make Australia or our region safer – it will do the opposite.”
On this episode of Dollars & Sense, Greg and Elinor discuss the pay increase for childcare workers, what’s happening in the stock market and the decision to keep interest rates on hold.
Greg Jericho is Chief Economist at the Australia Institute and the Centre for Future Work and popular columnist of Grogonomics with Guardian Australia. Each week on Dollars & Sense, Greg dives into the latest economic figures to explain what they can tell us about what’s happening in the economy, how it will impact you and where things are headed.
Host: Greg Jericho, Chief Economist, the Australia Institute // @GrogsGamut
Host: Elinor Johnston-Leek, Senior Content Producer, the Australia Institute // @ElinorJ_L
Theme music: Blue Dot Sessions
We’d love to hear your feedback on this series, so send in your questions, comments or suggestions for future episodes to podcasts@australiainstitute.org.au.
Are the home affairs and immigration portfolios a poisoned chalice for the new minister, Tony Burke? And are the opposition’s attacks on the government over the economy having an impact ahead of the election? On this episode of Follow the Money, we discuss the latest in federal politics with Paul Bongiorno.
This discussion was recorded on Tuesday 6 August 2024 and things may have changed since recording.
Guest: Paul Bongiorno, columnist, The Saturday Paper and The New Daily // @PaulBongiorno
Host: Greg Jericho, Chief Economist, the Australia Institute // @GrogsGamut
Theme music: Pulse and Thrum; additional music by Blue Dot Sessions
We’d love to hear your feedback on this series, so send in your questions, comments or suggestions for future episodes to podcasts@australiainstitute.org.au.
New APRA figures show the impact the Reserve Bank’s program of official interest rate increases has had on the Australian economy.
From the low of 0.10% in April 2022, official interest rates have increased by 425 basis points to 4.35%. Thankfully the Reserve Bank has this month kept rates steady, but the damage to the economy has already been done.
Since the March quarter of 2022, quarterly interest payments to the banks from the rest of the Australian economy went from $25.8 billion to $78.95 billion in March 2024. If we annualise these figures that means there has been a $212 billion increase in payments to the banks since official rates were increased.
Since that low of March 2022, each 25 basis point increase in the official interest rate increased banks’ annualised interest charges by around $12 billion. For comparison that is slightly more than the Australian government is budgeted to spend in this financial year on support for carers.
Over the same period, quarterly payments to the banks for home loans increased from $13.5 billion to $32.8 billion. The increase of $19.3 billion per quarter equates to just over $77 billion per annum. It also means that each 25 basis point increase in the official rate increases annualised interest charges on home loans by $4.5 billion per annum. Each 100-basis point increase increased the banks’ annualised interest charges on home loans by $18 billion.
Patricia Karvelas peppered the Treasurer with questions this morning, asking whether there is there anything the government can do to slow “non-essential projects” to “allow flow back to housing”.
The short answer is yes. There is one particular kind of infrastructure the government can cut back on first: fossil fuels.
Every time the government approves new coal mines or gas expansions, it’s giving the go ahead to projects that soak up labour and equipment — taking resources away from the construction of essential infrastructure like dwellings, roads, and railways.
Some $41 billion worth of new fossil fuel projects are gobbling up the construction supply chain.
Recent research by the Australia Institute using official government data has found that fossil fuel projects make up 53% of the total funding committed to resource and energy infrastructure across Australia.
Woodside, for example, has committed an estimated $18 billion to oil and gas projects in Western Australia; Santos $4.3 billion to the Barossa gas project in the NT. Further billions are flowing to coal projects in NSW and Queensland.
In the wake of the Reserve Bank’s latest forecasts, Treasurer Jim Chalmers is facing calls to cut back infrastructure investment to relieve inflation pressures and ramp up housing construction – cutting back on fossil fuels is an easy first step to address this problem.
Everyone loves avocados. From ‘avo-toast’ to the adorable Jellycat Amusable Avocado plush toy, avocados have captured the hearts (and minds) of consumers globally. 
