The Zero Room

This week, I have been mostly reading:

• Australia's unreported poverty line — Gerry Georgatos in Independent Australia: If we can begin to be honest about the markers of poverty, unemployment, homelessness, in the least we would have to immediately double the numbers of the poor, unemployed and homeless. By this measure, there are at least six million Australians living in poverty and the proportion in poverty will continue to increase long into the foreseeable future. There are closer to two million Australian children living in poverty rather than the 740,000 children that we are officially told, or allowed to believe, are living in poverty.
• Universities hoover-up the great unwashed — Leith van Onselen, MacroBusiness: In addition to the lowering of university entrance scores, further evidence that Australia’s universities have turned into quantity-based ‘degree factories’ is also provided in the most recent Department of Employment skills shortages report, which showed there were a record 1 million domestic students enrolled with a higher education provider, 730,000 of which were enrolled in bachelor degrees – an extraordinary amount of higher education students in an economy of 24.5 million.
• FIRE sector vampire continues to bleed economy dry — Leith van Onselen, MacroBusiness:
  
• The Skills Gap that Always Explains Unemployment — Dean Baker: There is a substantial segment of elite types who are always happy to hear about the skills shortage as an explanation for unemployment. See, the problem is not the state of the economy and its poor management by economists, the problem is always the ill-trained workers. You don't need evidence for this one, just assert that the problem is workers don't have the right skills and furrow your brow in a concerned manner. Works every time.
• If Africa is rich – why is it so poor? — Bill Mitchell: Essentially, Gunder Frank argued that it is essential to understand the relationship between the “metropolis and its economic colonies” under capitalism. The underdeveloped countries were in that state because they were functionally essential to making the developed nations at the core richer. This was a very conception of the process of economic development that organisations such as the IMF and the World Bank hold out as they impose neo-liberal policy structures onto the underdeveloped world. What Gunder Frank argued was that these policy structures were not about developing the undeveloped nations but, rather, developing the richer nations further and holding the underdeveloped nations in a state where they could act as resource conduits for the richer nations.
• The U.S. Is Shocked Shocked Shocked! That Russia May Have Meddled With Our Election — Ted Rall:
  
• Behind the Media Surge Against Bernie Sanders — Norman Solomon: A few days earlier, the newspaper had front-paged another “news” story hostile to grassroots political forces aligned with Bernie -- a de facto editorial masquerading as news coverage, headlined: “Democrats in Split-Screen: The Base Wants It All. The Party Wants to Win.” In a bizarre disconnect from electoral reality, the article portrayed a party establishment that had lost election after election, including a cataclysmic loss to Trump, as being about winning. And the article portrayed the party’s activist base as interfering with the establishment’s winning ways.
• Theresa May can nail Brexit, she just needs to make sure everyone continues feeling sorry for her — Mark Steel in the Independent: I think I’ve worked out what’s happening here. It’s a mass psychological test – we’re all being monitored to see at what point we feel sorry for Theresa May. By November, she’ll be at a G8 summit crawling round the floor looking for her contact lens and get tangled in the Japanese Prime Minister’s wife’s kimono, which she’s allergic to so she turns purple, but the blotches on her neck will spell “I’m shit at Brexit” then she’ll get trodden on by a stray llama, and let out a series of growls that accidentally sound like “You can have Scotland for a fiver” in German to Angela Merkel.
• Kensington & Chelsea’s reserves prove people don’t want government to run surpluses — Richard Murphy: As a matter of fact local authorities need reserves. They are solely dependent upon revenues they can raise from local taxes, central government and the supply of services. They can borrow, but only with difficulty in most cases. And the reality is that they face unpredictable demand for their services and central government has a poor record of responding to their needs in times of crisis. So, they have reserves. These are, literally, a contingency fund for the unforeseen. Kensington and Chelsea has made this fact visible and it seems that people do not like it. What they resent is that they have paid tax without a purpose.
• "Bribing voters" and all that: neoliberal contempt for democracy? — John Weeks in the Prime Economics blog: Social provision rather than commercialization through markets is the underlying political economy of social democracy. Social democrats restrict markets; neoliberals enhance them. The social democratic commitment to universal provision directly contradicts the neoliberal vision of a market dominated economy. Over the last decade neoliberals have responded to the social democratic principle of universal provision by labelling it populism of the left. […] means testing by definition divides households into the “haves” and the “have-nots”; indeed, it reinforces and institutionalizes that division. This division fosters the shirker/striver and undeserving/deserving ideology of neoliberalism. Universal provision unites society rather than dividing it.
• Australia’s housing bubble obliterates all records — Leith van Onselen
  
• Exclusive: Steve Keen on the secret source of eternal Australian growth — in MacroBusiness: Australia avoided a recession in 2008 only by adding additional leverage to its already over-indebted household sector, and the only ways that Australia can keep its winning streak on GDP growth going (given that its government is obsessed with trying to run a surplus) is to either to achieve a huge trade surplus, or for the household sector to continue piling on debt faster than GDP itself grows. […] It may continue to [keep credit demand high] for a while, particularly if encouraged by government policies like a renewed First Home Vendors Grant, further interest rate cuts by the RBA, or some policy doozie like letting suckers—sorry, I meant first home buyers—use their superannuation for a house purchase. But it will reach a plateau, and before it does, credit-based demand will at best fall to zero. Far more likely is that it will turn negative, as it has done in every other country that has experienced a recession caused by falling credit, with both the business sector and the household sector deleveraging.
• There is a true oppositional Left forming and gaining political traction — Bill Mitchell: [The British and French parliamentary elections], particularly the British outcome confirms what we have been noticing for a few years now – there is finally what we might call a true oppositional Left forming and gaining political traction in these nations. This is a Left platform that concedes little to the neo-liberals. It is vilified by the conservatives and the so-called progressive commentariat (such as the Guardian writers) and politicians (New Labour in Britain) as being in “cloud cuckoo land” and predictions from all of sundry of electoral wipeouts have been daily. But the results demonstrated that the message (such as in the Labour Manifesto) resonates with millions of people (40 per cent of those who voted in Britain). It is now a mainstream Left message that has taken over the British Labour Party and the Blairites are hiding under rocks. There is hope. People will only tolerate being bashed over the head for so long. There is now retaliation going on.
• Cognitive dissonance helps old dogs with their new tricks — Suzanne Cope in Aeon: ‘We learned from the rapidly changing views on gay marriage that direct personal contact with gay family or friends had the greatest impact on challenging views,’ said Judith Beth Cohen, an adult learning expert at Lesley University in Massachusetts. ‘In this case, cognitive dissonance came from the human contact, which made an abstraction come alive. Given that most new media feeds people what they want to hear, we need ways to get beyond our bubbles and encounter the “other”, not just virtually but in the flesh.’

THE Coffs Coast already boasts quality fishing but this could be improved.

Coffs Harbour MP Andrew Fraser is encouraging application for the next round of the NSW Government's Recreational Fishing Trust Grants.

Popular projects funded by this grant include fish aggregating devices and artificial reefs.

I had no idea that there were such things as "fish aggregating devices". What an age we live in!

What worries me is the potential for such a device to run amok and go critical. Are there proper procedures in place to keep our community safe in the event of a catastrophic fish meltdown? I expect the half-life of fish is rather short, but that will be of little comfort to those living within the radius of contamination in the immediate aftermath, as they go through the painstaking and rather smelly recovery process of picking tiny bones out of everything.

I suggest that it's only sensible to have emergency response crews stationed by each and every fish aggregation site, equipped with enough lemon juice and tartare sauce to tamp down any impending piscatorial blowout.

"This begs the question - is the Coffs Coast ready for more decorating/furnishing stores? And if so, which ones?

It seems every time a warehouse or industrial space becomes vacant there are whispers around town of either Myer or Ikea setting up shop.

Matt Blatt, Pottery Barn, Oz Design or King Living? David Jones or Myer? Which business would you welcome on the Coffs Coast"

By Jove, I'm glad there's one media outlet willing to tackle controversial topics like this. I've seen careers ruined and families broken up over less. You, my friend, have opened up a huge can of worms, and absolutely nobody likes worms. Except some fish. And birds. And other worms, I suppose.

The one thing I really miss since moving to Reejnall Australia - apart from civilisation, of course - is Big Jim McSplinter's Family Lifestyle Outlet. We used to love that place, when we were kids. As Pete Smith used to say on the TV ads "If it's made from old fence palings and rusty nails, you'll find it at McSplinter's".

It may seem quaint now, but that was really the dawn of aspirational Australia. To be greeted at the door by a man dressed up in a giant Big Jim costume (usually Big Jim himself in those days), then to stroll through the store, first left, then right, then left, then right, and so on, running a hand over ever more fashionably rustic home furnishings…

Then, while waiting for the staff to securely strap our purchases to the roof of the Toyota Tarago, we'd enjoy an ice cold milkshake in the Antiseptic Lounge, and set to work with our complimentary tweezers. "A McSplinter's family is a family that's up to date on their tetanus jabs," as they used to say, and although it's become much more gentrified and sophisticated in recent years, I still think that this is the sort of business that would attract much-needed multi-story car parks to the region.

This week, I have been mostly reading:

• My “Nonviolent” Stance Was Met With Heavily Armed Men — Logan Rimel of Radical Discipleship: I never felt safer than when I was near antifa. They came to defend people, to put their bodies between these armed white supremacists and those of us who could not or would not fight. They protected a lot of people that day, including groups of clergy. My safety (and safety is relative in these situations) was dependent upon their willingness to commit violence. In effect, I outsourced the sin of my violence to them. I asked them to get their hands dirty so I could keep mine clean. Do you understand? They took that up for me, for the clergy they shielded, for those of us in danger. We cannot claim to be pacifists or nonviolent when our safety requires another to commit violence, and we ask for that safety.
• The First White President — Ta-Nehisi Coates in the Atlantic: Trump is the first president to have served in no public capacity before ascending to his perch. But more telling, Trump is also the first president to have publicly affirmed that his daughter is a “piece of ass.” The mind seizes trying to imagine a black man extolling the virtues of sexual assault on tape (“When you’re a star, they let you do it”), fending off multiple accusations of such assaults, immersed in multiple lawsuits for allegedly fraudulent business dealings, exhorting his followers to violence, and then strolling into the White House. But that is the point of white supremacy—to ensure that that which all others achieve with maximal effort, white people (particularly white men) achieve with minimal qualification. Barack Obama delivered to black people the hoary message that if they work twice as hard as white people, anything is possible. But Trump’s counter is persuasive: Work half as hard as black people, and even more is possible.
• Humans are intrinsically anti neo-liberal — Bill Mitchell: One of the great casualties of this neo-liberal dark age that we are living through at present and which began in the 1980s (if not a little earlier) is that society has been subjugated to economy. In the 1980s, we began to live in economies rather than societies or communities.
• Why Economists Have to Embrace Complexity to Avoid Disaster — Evonomics publishes an awe-inspiring excerpt from Steve Keen's new book: The reason that aggregating individual downward sloping demand curve[s] results in a market demand curve that can have any shape at all is simple to understand, but—for those raised in the mainstream tradition—very difficult to accept. The individual demand curve is derived by assuming that relative prices can change without affecting the consumer’s income. This assumption can’t be made when you consider all of society—which you must do when aggregating individual demand to derive a market demand curve—because changing relative prices will change relative incomes as well.
• Capital is failing Australia not labour — Leith van Onselen at MacroBusiness: In 1974, the share of TFI taken by wages was 62%, whereas as at December 2016 it had fallen to just 53% – a 9% decline. By contrast, the share of TFI taken by profits was 17% in 1974, whereas as at December 2016 it had risen to 26% – a 9% increase. Moreover, the fall in workers’ share of TFI has nothing to do with productivity. […] Australian labour productivity (real GDP per hour worked) has risen by just under 80% since 1978, whereas real average compensation per employee has risen by just 28% over the same period.
  
• An Open Letter to My Online Student — Peyton Burgess at McSweeny's Internet Tendency: Did you get my email regarding the Extra Credit assignment? You could benefit from the Extra Credit assignment. Many of you could benefit from it. Nobody has emailed me yet to say how generous it was of me to offer the Extra Credit assignment. Online Student, you have never responded, and I fear you never will.
• Donald Trump has just met with the new leader of the secular world – Pope Francis — Robert Fisk, the Independent: For more and more, the Good Old Pope is coming to represent what the Trumps and Mays will not say: that the West has a moral duty to end its wars in the Middle East, to stop selling weapons to the killers of the Middle East and to treat the people of the Middle East with justice and dignity.
• Meet the CamperForce, Amazon's Nomadic Retiree Army — Jessica Bruder in Wired: Many of the workers who joined Camper­Force were around traditional retirement age, in their sixties or even seventies. They were glad to have a job, even if it involved walking as many as 15 miles a day on the concrete floor of a warehouse. From a hiring perspective, the RVers were a dream labor force. They showed up on demand and dispersed just before Christmas in what the company cheerfully called a “taillight parade.” They asked for little in the way of benefits or protections. And though warehouse jobs were physically taxing—not an obvious fit for older bodies—recruiters came to see Camper­Force workers’ maturity as an asset. These were diligent, responsible employees. Their attendance rates were excellent.
• The Dystopia We Signed Up For — Chelsea Manning in the New York TImes: The real power of mass data collection lies in the hand-tailored algorithms capable of sifting, sorting and identifying patterns within the data itself. When enough information is collected over time, governments and corporations can use or abuse those patterns to predict future human behavior. Our data establishes a “pattern of life” from seemingly harmless digital residue like cellphone tower pings, credit card transactions and web browsing histories.