Costello's Myth-making and Some Myth-busters we need

Not surprisingly, the excerpt from Peter Costello's imminent Memoirs published in the Sydney Morning Herald this weekend continues the essential mythmaking about the economic credentials of the Liberals as economic managers.


Costello says:
"Over 11 and 1/2 years we had delivered the most successful period of economic management in Australian history. We had lowered interest rates, brought unemployment to historic lows, eliminated Commonwealth net debt and managed the longest period of uninterrupted economic growth our country had ever known. We had turned Australia from the 'sick man of Asia' into a respected regional leader. We had built an Age of Prosperity. That would be the verdict of history. It was a record of which we can all be proud."


The myth is that the Liberals know how to run and grow the economy for the benefit of everyone, or in more common fashion, they know how to "look after money" ... better than Labor.


But the claim is revealed as myth making through the more serious critical examination of the Australian economic "performance" in the latest (and timely) Journal of Australian Political Economy (no. 61, June 2008).


For example, Ashley Lavelle, using data from the Treasury Department, the International Monetary Fund, and individual commentators, can say:

"Australia's average economic growth rate in the 1990's was slightly better than the 1980's, about the same as the 1970s, but much lower than the 1960s and lower than the 1950s and 40s.... The 1990s figure is also only just above the 20th century average of 3.4%."


And so the myth busting continues in devastating fashion.


Lavelle, and this issue of JAPE generally, have bigger fish to fry than just the performance of the Howard government. The whole issue critiques the neoliberal prescription (and also what I call the neolaboral perspective of new Labor) to save capitalist economies from themselves and, describes the endemic tendencies to destructive instability and crisis creation, both within the years of expansion and afterwards.


Justifiably, there are other "thinkers" who get the serve they deserve, including the shallow and rather stupid Bill Shorten who in his maiden speech urged (on behalf of someone) that "old class war conflicts should finally be pronounced dead."


Furthermore, the information and analysis in this issue, confirms the relevance and strength of a class perspective on what is happening in Australian society. (Absolutley appropriate and necessary, even after the defeat of Howard's neoliberalism at the 07 election by working class mobilisation.)


Not as many people read the JAPE as it deserves. But, if you are looking for information and analysis that will help you understand what is going on in the world right now, it is essential.


You will get

• a historical perspective - short and longer term;


• an international and internationalist perspective;


• clarity on growth - recession and boom bust;


• hard information that helps you understand inequality through the boom and fight for more equality;


• the inadequacy of dependence on the minerals boom;


• and much more.

But, unfortunately, what you will not get is very much in the way of an alternative political strategy. In Australia, that remains very much in recession.

Understanding Economics Can be Fun: Read Jim Stanford

Yes, it's hard to believe but it's true, there is an economist who talks and writes about what is happening in the economy in a clear and often amusing way. His name is Jim Stanford and he works as National Research Director for the Canadian Auto Workers Union. Jim also writes a regular column for the Globe and Mail and an email post called Facts From the Fringe. For a taste of his no nonsense and humour laden style that cuts into neoliberalism's nonsense try this: Facts From the Fringe.
His latest and very powerful effort is a new book, "Economics for Everyone: A Short Guide to the Economics of Capitalism."
I am a largely self taught, kitchen table economist, randomly learning economics as I go, and after 30 odd years of this, still struggling with a lot of what is happening. So this book has 2 big advantages for me: it can be read front to back and, also dipped into at chapters (and sometimes some sub sectors of chapters) that are relevant or most intersting relative to what is happening in the society that needs some economic explanation.
So, for example, Prime Minister Rudd has initiated a major review of Australia's taxation system in response to "pressure" - "requests" from Australian big business. Chapter 20 on "Spending and Taxing" is an excellent 13 page, plain language guide to help understand and critique the media reporting and government documents on this issue. If you want to prevent a tax system that gives even more favours to the rich and powerful in both personal and business taxation this chapter is a good step in the process.
Some important features of this book are:
- it examines the economy through the eyes of working people;
- it is supported by a still to be developed web site of resources, teaching materials and commentary: Economics for Everyone
- it starts from the obvious - we live in a capitalist society, therefore let's understand capitalism;
- it's often funny, supported by some excellent cartoons;
- it shows the links between economics, politics and society;
- it's Canadian focus still connects to the Australian and other capitalist society;
- it's left wing and hip, taking us through and past social democracy perspectives;
- it defines and explains in plain language a lot of the conomic jargon we hear and read every day;
- it builds a basic picture of what an economy is and then steadily and systematically builds on more complex layers of understanding that are not overwhelming;
- it restores the possibilities of an alternative to capitalism that learns the most important lessons of socialist societies that have been attempted;
It's written for non economists who are working out that leaving the economy to coprorations, governments and economists is very dangerous.
This book is great for activists of all ages.
It is not yet widely available in Australia, but soon will be.
Since finishing the book Jim has also written a shorter primer for activists on UNderstanding the Global Financial System and Its Current Crisis.