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.’

This week, I have been mostly reading:

• No, the “grown-ups” won’t save us: A favorite Beltway fantasy bites the dust again — Heather Digby Parton in Salon: One would have thought Americans had learned their lesson after having lived through the disaster of the George W. Bush years. But 16 years later the Republican Party served up another unqualified, ill-equipped nominee, and he, too, became president without winning the most votes. Once again the establishment tried to reassure the public that he would be held in check by the vice president and the respectable appointees: Gen. Jim Mattis at the Pentagon, Gen. John Kelly at Homeland Security and — after the first choice was fired — Gen. H.R. McMaster as national security adviser. Since the military is the only institution left in America that maintains even the slightest respect among the public, this seemed like a good idea. These men had commanded legions; surely they could control the likes of President Donald Trump.
• Intellectual Property Is Real Money — Dean Baker in Jacobin: The idea of imposing a 20 percent tariff on imported shoes or steel would send any mainstream economist into a frenzy. They all know how tariffs distort the market, leading to waste and corruption. But when it comes to patents and copyrights, the difference we are talking about — between the protected price and the “free market price” — is ten or even a hundred times higher than it would be otherwise.
• Are Students a Class? — Michael Hudson: In view of the fact that a college education is a precondition for joining the working class (except for billionaire dropouts), the middle class is a debtor class – so deep in debt that once they manage to get a job, they have no leeway to go on strike, much less to protest against bad working conditions. This is what Alan Greenspan described as the “traumatized worker effect” of debt. Do students think about their future in these terms? How do they think of their place in the world?
• Monopoly has a Magic Money Tree, just like the real world — Richard Murphy on a point previously made by Stephanie Kelton: Monopoly reflects real life perfectly: the central bank can never run out of money. If it does, it can just create some more.
• #1317; In which an Adult has Fantasies — Wondermark, by David Malki !:
• Slow Crash — Andrew Cockburn interviews Michael Hudson in Harper's: Wall Street’s investment banks and bondholders were rescued, not the economy. The debts were left in place, and continue to grow not only by compound interest but by arrears and penalties compounding. The proportion of national income paid as interest, insurance fees and economic rent is rising faster than the economy is growing. Banks lend mainly to other financial institutions. They don’t lend to factories that are creating jobs. They don’t lend out for goods and services. They lend to other financial institutions. The whole economy has turned into trying to make money on speculation and arbitrage, not on producing goods and services, not on hiring people to actually do work. The economy therefore is very fragile.

This week, I have been mostly reading:

• Demon-Haunted World — Cory Doctorow at Locus Online: The basic theory of cheating is to assume that the cheater is ‘‘rational’’ and won’t spend more to cheat than they could make from the scam: the cost of cheating is the risk of getting caught, multiplied by the cost of the punishment (fines, reputational dam­age), added to the technical expense associated with breaking the anti-cheat mechanisms. Software changes the theory. Software – whose basic underlying mechanism is ‘‘If this happens, then do this, otherwise do that’’ – allows cheaters to be a lot more subtle, and thus harder to catch. Software can say, ‘‘If there’s a chance I’m undergoing inspection, then be totally honest – but cheat the rest of the time.’’
• Widening inequality is largely a US and UK phenomenon – why? — by good lord, it's Vince Cable, new Lib Dem leader!: […] there is abundant cross-country evidence that too much inequality can harm economic performance, and that redistributive politics can do good. Studies suggest that higher levels of inequality are associated with unproductive rent-seeking; contribute to financial instability; feed asset bubbles rather than productive investment; weaken demand and encourage high levels of household debt; and lead to underinvestment in education and health.
• Nature Does Not Grade on a Curve — Ian Welsh: One of the problems with de-naturing (with living in almost entirely human made systems, and with pushing those bits we don’t control off into ghettos as we would illness), is that it means most people almost never experience a benchmark that isn’t set by other human beings. They feel, in their guts, that if only other people are convinced, any problem can be fixed or finangled. No. The bear doesn’t care that you can’t run fast enough because TV is funner than going for a jog, and nature doesn’t care that shareholders needed value and that oil barons didn’t want to be a little poorer (or whatever). And neither will those who suffer from climate changes due to our ethical monstrosity and sheer incapability.
• The Future of Work, Robotization, and Capitalism’s Ability to Generate Useless Jobs — Rutger Bregman: The time has come to stop sidestepping the debate and home in on the real issue: what would our economy look like if we were to radically redefine the meaning of “work”? I firmly believe that a universal basic income is the most effective answer to the dilemma of advancing robotization. Not because robots will take over all the purposeful jobs, but because a basic income would give everybody the chance to do work that is meaningful. I believe in a future where the value of your work is not determined by the size of your paycheck, but by the amount of happiness you spread and the amount of meaning you give. I believe in a future where the point of education is not to prepare you for another useless job, but for a life well lived. I believe in a future where “jobs are for robots and life is for people.”
• Ransom — Flea Snobbery:
  
• Even when wars end in the Middle East, superbugs and aggressive cancers caused by conflict fight on — Robert Fisk in the Independent: A Medecins Sans Frontieres analysis – presented at the conference by Abu-Sitta and Dr Omar Dewachi who co-direct a newly created Conflict Medicine Programme at the AUB supported by Jonathan Whittall of Medecins sans Frontieres – said that multidrug resistant [MDR] bacteria now accounts for most war wound infections across the Middle East, yet most medical facilities in the region do not even have the laboratory capacity to diagnose MDR, leading to significant delays and clinical mismanagement of festering wounds. Beyond the physical damage caused by weaponry, Whittall added, “destroyed or degraded sanitation facilitates the microbiological seeding of wounds. The body, weakened by the wound, is reinjured when it interacts with the harsh, physically degraded environment.”
• The bitcoin and blockchain: energy hogs — Fabrice Flipo and Michel Berne in the Conversation: In a 2014 study, Karl J. O’Dwyer and David Malone showed that the consumption of the bitcoin network was likely to be approximately equivalent to the electricity consumption of a country like Ireland, i.e. an estimated 3 GW. Imagine the consequences if this type of bitcoin currency becomes widespread. The global money supply in circulation is estimated at $11,000 billion. The corresponding energy consumption should therefore exceed 4,000 GW, which is eight times the electricity consumption of France and twice that of the United States. It is not without reason that a recent headline on the Novethic website proclaimed “The bitcoin, a burden for the climate”.
• The Varieties of Populist Experience — Robert Skidelsky: To be sure, support for a leftist program certainly exists in France. About 20% of voters backed the left-wing populist Jean-Luc Mélenchon in the presidential election’s first round. In the second round, one particularly illuminating Twitter hashtag was #NiPatronNiPatrie (“neither boss nor country”), reflecting many voters’ dissatisfaction with the election’s choice between neoliberalism and nationalism. The task of the left is to direct attention to the truly problematic aspects of global economic integration – financialization, the prioritization of capital over labor, of creditor over debtor, of patron over ouvrier – without lapsing into reactionary politics.
• I wrote ‘The Art of the Deal’ with Trump. His self-sabotage is rooted in his past. — Tony Schwartz in the Washington Post: The Trump I got to know had no deep ideological beliefs, nor any passionate feeling about anything but his immediate self-interest. He derives his sense of significance from conquests and accomplishments. “Can you believe it, Tony?” he would often say at the start of late-night conversations with me, going on to describe some new example of his brilliance. But the reassurance he got from even his biggest achievements was always ephemeral and unreliable — and that appears to include being elected president. Any addiction has a predictable pattern: The addict keeps chasing the high by upping the ante in an increasingly futile attempt to re-create the desired state. On the face of it, Trump has more opportunities now to feel significant and accomplished than almost any other human being on the planet. But that’s like saying a heroin addict has his problem licked once he has free and continuous access to the drug. Trump also now has a far bigger and more public stage on which to fail and to feel unworthy.
• Renegade Shorts - STEVE KEEN on Government Surplus:
  
• Australians don’t loiter in public space – the legacy of colonial control by design — Aaron Magro in the Conversation: While towns and new suburbs in the young colony were deeply influenced by European urban design, a key feature was excluded – the piazza. Governor Richard Bourke made very clear to surveyors that new towns in New South Wales (which at the time encompassed present-day Victoria) must not include public squares as these could promote rebellion.
• Free Time and the Pressures of Employability — David Frayne at Zed Books: The notion of employability has risen to remarkable prominence in the early part of the twenty-first century, where it forms the lynchpin of a neoliberal political philosophy, in which the state and employers are no longer committed to, or deemed responsible for, providing citizens with lasting and secure jobs. Those politicians who champion neoliberal policies have glorified paid employment, whilst at the same time dismantling the social protections that have traditionally insulated citizens against the uncertainties of the labour market. Within this context, the capacity of individuals to work relentlessly at their employability has come to be understood as the crux of national and individual prosperity.

This week, I have been mostly reading:

• Copyright Agency diverts funds meant for authors to $15m fighting fund — Peter Martin, in the Sydney Morning Herald, via Pirate Party Australia: The Copyright Agency is the only body authorised to collect copyright fees from schools and universities on behalf of authors, illustrators, artists, photographers and publishers whose work is copied. It has been criticised in a Productivity Commission review that is before the government over the transparency of its accounts and its practice of retaining, rather than returning, millions of dollars collected from schools and universities on behalf of the owners of "orphan works" who can't be traced. […] An examination of its accounts shows that in a change not disclosed to the commission or to its members in annual reports, since 2013 it has been channelling that income into a fund set up to campaign against changes to the copyright law.
• Why do you want to work here? — Saturday Morning Breakfast Cereal by Zach Weinersmith:
  
• You're probably confused about your media usage rights, and media companies are ok with that — Zak Rogoff at Defective by Design: When people buy an ebook, do they expect to be able to read it for the rest of their lives? How about the ability to make a backup copy of a movie before their hard drive breaks? For most digital media purchases, these reasonable activities are prevented by DRM (Digital Restrictions Management), but it appears the vast majority of customers don't know it.
• Economics 101 for the NYT: Unauthorized Copies Are Not Necessarily "Counterfeits" — Dean Baker: For an item to be counterfeit, the buyer must be deceived. […] consumers who knowingly buy unauthorized copies of major brands are benefiting from the opportunity to buy the copy at a lower cost than the brand product. They presumably are willing to trust the quality of the product produced by the knock-off manufacturer, given the savings.
• Obama to Hillary: Here’s How You Sell Out — Ted Rall:
  
• Why 'A Domain of One's Own' Matters (For the Future of Knowledge) — Audrey Watters: I’m pretty resistant to framing “domains” as simply a matter of “skills.” Because I think its potential is far more radical than that. This isn’t about making sure literature students “learn to code” or history students “learn to code” or medical faculty “learn to code” or chemistry faculty “learn to code.” Rather it’s about recognizing that the World Wide Web is site for scholarly activity. It’s about recognizing that students are scholars.