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To mark PPE@10 this feature starts a series of posts to celebrate ten years of Progress in Political Economy (PPE) as a blog that has addressed the worldliness of critical political economy issues since 2014. 

Last month, BlackRock, the world’s largest asset manager, made headlines as its support for shareholder proposals on environmental, social and governance (ESG) issues tanked at 4%, down from a peak of 47% in 2021.

This looks like an extraordinary pivot because in 2020 BlackRock became infamous as a posterchild for ESG investing. In his open letters to investors and companies that year, BlackRock CEO Larry Fink declared a ‘fundamental reshaping of finance’ whereby long term company profits would be dependent on ‘embracing purpose and considering the needs of a broad range of stakeholders’. He claimed this would involve putting sustainability at the heart of BlackRock’s investment strategy and integrating ESG factors into its investment decision making.

Peter Dutton and Donald Trump have a knack for political division. There’s no doubt that stoking fear and the politics of division can be brutally effective, but the last thing Australia needs is to import the damaging culture wars of the American far right, dominated by bonkers conspiracy theories adhered to by militant acolytes untroubled by reality.

Trump vowed to conduct ‘ideological screenings’ and to bar refugees from Gaza if he wins the Presidency and he’s also said he will bring back his controversial ‘Muslim ban’ on immigration. Similarly, Dutton has been echoing Trump’s call to ban refugees from Gaza, arguing that accepting people coming from Gaza is a national security risk. Zali Steggall described the policy as ‘inherently racist’ and this week Treasurer Jim Chalmers said: “[Dutton] divides deliberately, almost pathologically, and that sort of division in our leadership, in our society, right now is worse than disappointing — it’s dangerous.”

On this episode of Dollars & Sense, Greg and Elinor discuss the Greens’ ‘Robin Hood’ tax proposal, post-pandemic profits and the latest inflation data.

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 and Centre for Future Work // @GrogsGamut

Host: Elinor Johnston-Leek, Senior Content Producer, the Australia Institute // @ElinorJ_L

Show notes:

‘Unemployment is rising and Australia’s economy is weak – but don’t hit the recession alarm just yet’ by Greg Jericho, Guardian Australia (August 2024)

This article was originally published, in slightly different form, on Southern Urbanism. It is shared here with permission. In-line images were provided by the writer.

The media industry has changed radically over the last three decades, transformed by the 24-hour news cycle, social media and the tech giants, and now artificial intelligence. On this special episode of Follow the Money, recorded live at Politics in the Pub in Canberra, Minister Ed Husic, Senator Sarah Hanson-Young and Karen Percy from the Media, Entertainment & Arts Alliance (MEAA) discuss technology, trust and the future of journalism.

This discussion was recorded live on Wednesday 21 August 2024 and things may have changed since recording.

Guest: The Hon Ed Husic MP, Minister for Industry and Science

Guest: Senator Sarah Hanson-Young, Greens Arts & Communications spokesperson // @sarahinthesen8

Guest: Karen Percy, Federal President (Media), Media, Entertainment & Arts Alliance (MEAA) // @PercyKaren

Host: Richard Denniss, Executive Director, the Australia Institute // @RDNS_TAI

Host: Ebony Bennett, Deputy Director, the Australia Institute // @ebony_bennett

Theme music: Pulse and Thrum; additional music by Blue Dot Sessions

“What do you need to solve the climate crisis? The answer is, everyone.” This quote from climate scientist Katherine Hayhoe highlights the importance of collective action, which is crucial in the travel industry, an industry which is at the heart of the global economy yet contributes substantially to climate change. The travel and tourism sector contributed 9.1% to global GDP in 2023, but it is responsible for 8% of global GHG emissions. Due to these environmental externalities, many key travel companies have shifted their focus so that they are no longer solely prioritising profit maximisation and are now trying to mitigate their environmental damage. To ensure that the global tourism industry doesn’t continue to compromise our planet, sustainable travel practices must be adopted by all. In this blog post we explore three ways in which travel for tourism can be conducted more sustainably: eco-tourism, carbon emissions offsetting, and global environmental projects. Additionally, we will discuss how governments can support and encourage sustainable tourism through regulations and subsidies.

Ecotourism Destinations

In February 2024, Taylor Swift’s The Eras Tour ignited a diplomatic dispute among ASEAN countries, after the Singaporean government subsidised the tour at a cost of US$2-3m per show, in exchange for Swift to perform her Asian shows exclusively in Singapore. In response Singapore’s neighbours complained of ‘betrayal’, arguing they could have also subsidised Swift’s concerts. This competition among ASEAN countries to host such ‘mega-concerts’ stems from the economic boost such can provide, a phenomenon dubbed ‘Swiftonomics’. It is reported that after The Eras Tour, Singapore’s GDP increased by 0.2%. This case demonstrates how concerts can have substantial economic implications, as Southeast Asia’s ‘competition states’ jostle to attract the investment and growth opportunities that come with them.

This week the Pacific Islands Forum meeting in Tonga will see leaders from the region address the dramatic impact of climate change and the urgent need to reduce emissions. It is an important moment for the Australian government to reject the lies of the gas industry and acknowledge that approving more gas will ruin the livelihood of the millions living in the Pacific Islands.

Gas is a massive contributor to greenhouse gas emissions (the clue is in the name!) that cause climate change. And given the world has just experienced 13 straight months of record setting temperatures, it is brutally clear that we need to reduce emissions quickly and with much greater urgency than has been the case over the past decade. But reducing emissions is not compatible with gas company profits, so gas companies and their boosters in the media routinely bring out a scare of gas shortages and with it calls for more gas.

Australians have gone through another winter without running out of gas despite being told earlier this year that a gas shortage was very much on the cards. And so of course now the gas industry is warning that a gas shortage could still occur because… well… because the gas industry knows that the only way it can justify demanding the government approve new gas mines is if people think we are about to run out.

This article was originally published, in slightly different form, on Southern Urbanism. It is shared here with permission. In-line images were provided by the writer.

Whether lazing by the seaside during the summer, or escaping to exotic beaches during the winter, coastal regions have always been a space for relaxing. This form of travel is called ‘Coastal Tourism’, which is defined as  the temporary movement of people to aquatic environments or ‘blue spaces’.  Overtime, as recreation has become more valued to human wellbeing, coastal tourism has gained popularity through offering engaging scenery and a relaxing break from the day to day grind. With gaining popularity however, our natural spaces have been captured by the tourism industry, with large resorts dominating coastlines. Through sustainability scares and aggressive capitalism, our beaches are starting to lose their sex appeal.

Tourism and climate change; environmental impacts

Blue spaces are more than just natural resources. With island states, tropical beaches and surf coasts appealing to holiday goers, the profitability and subsequent privatisation of the tourism industry has shifted focus from the ecosystem and the cultural significance of the landscape. This is capitalist tourism, which favours economic benefits to the detriment of environmental sustainability.

This process, in conjunction with the threat of climate change, has global and local consequences.

ABC journalist and podcaster Matthew Bevan joins Dr Emma Shortis on this After America to discuss the Democratic National Convention and Trump’s to set the agenda.

This discussion was recorded on Monday 26 August 2024 and things may have changed since recording.

Guest: Matthew Bevan, host and writer of If You’re Listening, the ABC // @MatthewBevan

Host: Emma Shortis, Senior Research for International & Security Affairs, the Australia Institute // @EmmaShortis

Show notes:

‘Harris delivers warm and strong acceptance speech as Democrats take joy, hope and renewal to the electorate’ by Emma Shortis, The Conversation (August 2024)

Theme music: Blue Dot Sessions

One of the most regular and biggest scare campaigns Australians are subjected to is that Australia is about to run out of gas – that households will not be able to run heaters in winter or the light will go out in summer and the air conditioners will stop working because there will be no gas to power the electricity.

These warnings are increasingly shrill. In March for example The Australian newspaper warned that “Urgent action needed if Australia is to avoid catastrophic gas shortfall”. Despite getting through winter without a catastrophe this morning The Australian newspaper is now warning, that a “Perfect storm’ warning” has been issued to Australia’s east coast energy market.

It is all balderdash.

Australia digs up and exports a lot of gas. A really, really large amount. How much? Try 82,000,000 tonnes of the stuff each year. That is the 2nd largest amount of LNG production in the world, suggesting we are pretty good at it. But all that gas ends up as global greenhouse gas emissions and we’re meant to be reducing emissions.

For over two years now it has been clear that profits have been the main culprit of inflation, and that wages have not driven prices despite repeated warnings from the Reserve Bank and business groups that a wages breakout could be about to come and start a mythical “wage-price spiral”

The latest data on wage growth in Enterprise Agreements from the Fair Work Commission (FWC) is just the latest evidence that reveals how wrong those spreading a fear campaign about wages have been.

In the 3 months to 26 July this year, the 3 month weighted average of annual wage growth in enterprise agreements lodged with the FWC was 3.7% – down from a peak of 4.3% in October 2023. The last time the average was this low was in August last year. Importantly the 3.7% growth is lower than the most recent annual inflation figure of 3.8%.

While business groups and conservative media outlets continue to argue that wage growth is keeping inflation high, in reality – as has been the case for the past 2 years – wages are not driving inflation, indeed they are lowering it.

While the intention to reduce the influence of corporate political donations is welcome, the proposed legislation would disproportionately advantage incumbent parties, including enormous increases in public funding, much of which could be spent on election campaigning.

The Australia Institute’s submission to the government consultation into the Bill finds that:

On this episode of Dollars & Sense, Greg and Elinor get out the world’s tiniest violin for Australia’s big banks, who are finally having to compete to offer better mortgage rates, and discuss why three of the ‘big four’ are now offering less for term deposits.

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’re told it’s a cost-of-living crisis, but not everyone is feeling the pinch. New Australia Institute research shows that the ultra-rich are getting richer, thanks in part to Australia’s distorted tax system. On this episode of Follow the Money, Dr Richard Denniss and Dave Richardson join Dr Alice Grundy to discuss the growing problem of inequality and what we can do to fix it.

This discussion was recorded on Tuesday 20 August 2024 and things may have changed since recording.

Guest: Richard Denniss, Executive Director, the Australia Institute // @RDNS_TAI

Guest: David Richardson, Senior Research Fellow, the Australia Institute // @daverr01

Host: Alice Grundy, Anne Kantor Research Manager, the Australia Institute // @alicektg

Show notes:

Wealth and inequality in Australia by David Richardson and Frank Stilwell, the Australia Institute (August 2024)

‘The Morrison election: What we know now’ by Richard Denniss, The Monthly (June 2019)

Are alternative milks a suitable replacement for dairy milk? A paradigm shift is occurring in milk consumption, with plant-based alternatives gaining traction due to perceptions of their positive environmental impacts. Production requires less energy, water, and land, while demonstrably reducing greenhouse gas emissions. While concerns regarding nutritional parity with dairy milk exist, consumer preference for plant-based options is multi-faceted, encompassing health, ethical, and environmental considerations. This growing demand is reflected in a significant shift within agribusiness commodities. Marketing strategies now position plant-based milks as premium products, leveraging sustainability and health claims to fuel their remarkable industry rise.

From Farm to Future: Reducing Environmental Footprint with Plants

Making the switch to plant-based milks presents both advantages and disadvantages for the environment in the fight against climate change. When compared to dairy milk, plant-based substitutes often have a smaller environmental impact since they require less energy, water, and land and emit fewer greenhouse gases. In contrast to methane-intensive dairy farming, soy and oat milks are recognised for their efficient use of resources and reduced carbon emissions.

The billboards explain that major gas companies in the NT pay no royalties or petroleum resources tax, and that NT drivers contribute 30 times more in vehicle registration to NT Government revenue than the gas industry.

Key Points:

• Australia Institute research has found over the last four years, multinational companies made $149 billion exporting gas they got for free, including $37 billion from the NT. If royalties had been charged on this gas, at least $13.3 billion ($3.4 billion from NT) in revenue could have been raised.
• Reasons provided by Darwin Airport to not run the advertisements include that they were:
  • Negative in nature.
  • Political in nature.
  • Directed at other clients of Darwin Airport advertising services.
• Similar billboards in other jurisdictions, such as Western Australia, have been accepted as legitimate advertising.

“Democracies function best when the public is well-informed, and this becomes a challenge when private companies are deciding what information people can see,” said Richard Denniss, Executive Director of the Australia Institute.

“I think most people would be surprised to learn that vehicle registrations contribute far more to Northern Territory Government revenue than the gas industry, but the reason they’re surprised to hear it is because, as we’ve seen, there are barriers to sharing this type of information in public places like airports.

Donating clothes is a common practice for many. When people no longer have use for their clothes, when they no longer fit, or when they simply no longer like them, donating seems like a much better option than throwing them out. We think that by donating our clothes, we are contributing to both an environmental, and a social good. However, this seemingly altruistic practice may in fact be doing more harm than we realise.

Most donated clothes are never resold locally and are instead exported to other countries, with countries in the Global North being the largest exporters, and countries in the Global South being the largest importers. While some garments are then resold within the importing country, an estimated 40% of second hand clothing imports are declared to be unsuitable for reuse or resale, subsequently ending up in landfill, and worsening already struggling waste management systems. This begs the question of whether this practice is best described as ‘dumping’ rather than ‘donating’.

Degrowth scholarship calls for reducing less-necessary production in rich countries to enable faster decarbonization and reverse other ecological pressures.  But how can this be achieved?  What is the mechanism?  For many years ecological economists advocated setting “caps” on resource use, declining to levels that are compatible with ecological goals. This is a nice idea in the abstract, but it would be extremely difficult to implement.  How do you impose the cap?  How do you distribute resources within it?  Who gets how much? 

There is a simpler and more effective approach: credit guidance. The idea here is to impose rules that limit the quantity of finance that commercial banks can invest in problem sectors.  For example, credit guidance can be used to scale down commercial investment in fossil fuel production on a binding, annual schedule.  But it can also be used to reduce other destructive and unnecessary industries: SUVs, mansions, cruise ships, private jets, industrial beef, dangerous plastics, fast fashion, weapons, advertising, etc.

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

Show notes:

‘Sweet home, Chicago: the Democrats return to the site of their most tumultuous convention. This time, they are united’ by Emma Shortis and Liam Byrne, The Conversation (August 2024)

Theme music: Blue Dot Sessions

Nina Boyarchenko and Leonardo Elias

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”.

No worries, we’ll leave Santos out of this.

We came back with this design.

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.

Gizem Kosar, Davide Melcangi, and Sasha Thomas

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.

By way of comparison, tax breaks for luxury utes cost Australians $250 million last year, according to recent research by The Australia Institute.

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.