Bicycling Along a Tightrope

Guest Author Uncategorized

Another fine post from Catalyst, which (and whom) I wish would be the catalyst for changing the hearts and minds of the rich and super-rich elites of this country. Thank you again, Catalyst.

(Image credit: State Library of Victoria H96.160/2603)

Bicycling along a tightrope was how Harold Macmillan( Britain’s Prime Minister 1957-1963) explained how demanding formulating economic policy was and is. After the war and the subsequent years of bleak austerity, Macmillan famously reminded Britons that You’ve never had it so good.

In Australia too, Prime Minister Robert Menzies (1949-1966) was in the fortunate position of presiding over a high growth period. And it was prosperity that reached almost all Australians.

As Andrew Leigh writes in Battlers and Billionaires: The Story of Inequality in Australia:

There was a fridge in 97 percent of Australian homes in the 1960s, an appliance that most Britons, Germans and Italians did not yet possess.

(Image credit: Attic Paper)

He adds that Australians also took for granted owning a washing machine, a vacuum cleaner, a radio, and a television.

When we arrived as migrants in the early 1970s I was overawed by the variety of small electrical appliances for sale and which were present in so many ordinary homes.

(Image credits: Hoover washing machine; Electrolux vacuum cleaner; radiogram; PYE TV receiver)

Working conditions in Australia were better, the pay was better, the flat we rented was superior to the one we had left. What’s more, people were friendly, quick to help and the weather was so good. If it wasn’t quite a land of milk and honey, it was certainly a very favourable place to be.

Dreams that had seemed impossible were realised here: a home of our own with a swimming pool. Four weeks paid holidays (introduced 1974), penalty rates, and a more relaxed lifestyle.

Life was good, and it began to change so slowly that at first it was hardly noticeable. Management in the 1980s suddenly became the preserve of the young, and American ideas flourished. Pie charts and motivational talks were the order of the day. Personnel departments – alarmingly – were now presumed to manage ‘human resources’ .As the terminology changed, people became just another disposable asset

No longer could people expect lifetime careers. The rich list flourished and flamboyant millionaires indulged their sporting and others passions, while they sold off their companies. Alan Bond, Christopher Skase, Rene Rivkin, and Laurie Connell bought and sold companies and spent money lavishly: polo ponies, racing yachts, Van Gogh paintings and extravagant parties. Businessmen suddenly became the corporate elite and excess became commonplace. Think of the gloss and glamour of the TV shows Dynasty and Dallas.

(Image credits: Alan Bond; Christopher Skase; Rene Rivkin; Laurie Connell)

(Image credits: Dynasty; Dallas)

As the 80s came to an end some of the tycoons were jailed, some exiled themselves, some died, and some just faded from the limelight. The gulf between them and us had widened, Australia had become less interested in being egalitarian.

Interest rates climbed: rising from 12% they spiralled to 18%. In the early 1990s we had “the recession we had to have”. The boom mentality had led to a spending cycle which could not last. Dreams collapsed, firms failed, and jobs were lost. Many people were retrenched, in some cases (like mine) more than once. Houses went up for sale, as people could no longer afford their Australian dream. Firms merged or closed, leaving staff afraid for their superannuation. People found their job “rationalised” or downsized and the job for life disappeared, to be replaced by increased part-time and casual work.

(Image credit: The Age)

Insecurity was in the air, and like a game of snakes and ladders the assets that had climbed so high tumbled in value. If the 80s had been one long high, the 90s were a much more sober affair. But for some the party never stopped – while those on the lower rungs of the ladder were reeling, those at the top just kept on making money.

In 1992 Lang Hancock died worth about $150 million – a sizable fortune. These days, though, his daughter Gina Rinehart’s “worth” is estimated as $29 billion. In Battlers and Billionaires, Andrew Leigh asks:

Is she really 190 times more ingenious than her father?

He concludes that the income boost is due mostly to a tenfold increase in the price of iron ore.

At the same time he estimates that half of Australian families have an annual pre-tax household income of $77,220 or less. Many people take home considerably less. Life at the lower income levels needs clever budgeting and an unenvious spirit. Ingenuity, not cash, is the order of the day: bulk buying, home cooking, op shopping and the ability to amuse yourself and seek out free events can make life better, even at this income level.

As someone commented to me,

I can always tell middle class kids – even in op shop clothes – they’ve got straight, white middle class teeth.

They may find it fun pretending to be poor. Many don’t realise that not everyone enjoys private schooling, with Foxtel and broadband on tap, an iPad, a job lined up by daddy or mummy, access to the latest books and films and their own car, not to mention annual holidays, often overseas. These kids have known nothing else, but older people have less excuse for ignoring the growing inequality in our society.

(Image Credit: Dental Implants Review)

Why should a TV personality – an ‘ordinary mum’ type – reportedly be paid $700,000 a year? How much should her opinions be allowed to influence the rest of us? How can these people speak for and represent the majority?

And if she is out of touch, what about those at the very top, the rich and super rich? Their share of economic prosperity has tripled in the period 1984-2012 from 0.8% to 2.8%, according to Andrew Leigh. At their income levels these percentages really add up. So does their lack of understanding of those who will never make the rich list, who are not members of what some have dubbed the lucky sperm club.

(Image credit: The Age)

PLEASE NOTE: This was the Australian Rich List for 2011

That’s why we need a Labor government: to encourage people, not exclude them. To keep the fair go alive, to represent the majority of people, the ones that the elites like to forget about, so that we don’t end up with a more divided society, the enclaves of privilege contrasted to the rest of us.

If we have been fortunate, whether by inheritance or education, by intelligence or health, don’t we have an obligation to the rest of society? Shouldn’t we use our gifts to help others? Or will we allow the user pays mentality to take hold and grow, forgetting that not everyone has the capacity to pay?

© Catalyst 2013

596 thoughts on “Bicycling Along a Tightrope”

  1. Puffy, that is the only way to do it.

    The thought of any of the Liberal/Nationals having power over the Australian people worries the heck out of me.

    Kevin Rudd is the current Parliamentary Leader of the ALP and one day the job will be taken by someone else.

  2. I bought myself an offset smoker, use mostly peach apricot etc wood to make the smoke. Wild boar ribs are awesome smoked! Now I need to find out about rubs.

  3. Pol Animal,

    Are you contemplating rubbing a wild boar? Alive?

    Do let us know how that campaign works out.

  4. kaffeeklatscher
    AUGUST 5, 2013 AT 8:33 PM (EDIT)
    gorgeousdunny1

    Forgot about them.

    That clip was brilliant. It’s the one I remember most (how they looked really, REALLY, happy in their Mercedes, towing their yacht). I’ve used the line a lot, myself, over the years.

    VERY well spotted.

  12. Good morning Dawn Patrollers.
    Here we go.
    http://www.smh.com.au/world/rolf-harris-rearrested-on-new-sex-abuse-allegations-20130806-2ral4.html
    Mentally disturbed – in many respects.
    http://www.smh.com.au/nsw/new-assault-allegations-made-against-prayer-leader-during-visit-20130805-2ra66.html
    I really don’t like this Seppo.
    http://www.smh.com.au/national/poll-could-kill-car-industry-20130805-2ra91.html
    Hartcher on Ken Henry’s correct observations on revenue.
    http://www.smh.com.au/comment/both-parties-peddle-a-fiscal-fairytale-20130805-2ra2l.html
    And dirty money will win again.
    http://www.smh.com.au/federal-politics/political-news/news-ltd-apologises-to-barbara-ramjan-over-tony-abbott-punch-story-20130805-2r8si.html

  13. Section 2 . . .

    Oakey’s not the only one!
    http://www.smh.com.au/federal-politics/federal-election-2013/rob-oakeshott-regrets-failure-to-make-deal-on-debates-20130805-2r9tg.html
    David Pope conflates the announcement of the new Dr Who with Ruddstoration.
    http://www.smh.com.au/photogallery/federal-politics/cartoons/david-pope-20120214-1t3j0.html
    David Rowe with horrible imagery of Abbott and Hockey at the meat works.
    http://www.afr.com/p/national/cartoon_gallery_david_rowe_1g8WHy9urgOIQrWQ0IrkdO
    Ron Tandberg nails the hypocrisy of Hockey on smoking.
    http://www.smh.com.au/photogallery/federal-politics/cartoons/ron-tandberg-20090910-fixc.html

  16. And from the Land of the Free –

    Don’t you just LOVE Texas!
    http://thepoliticalcarnival.net/2013/08/05/video-texas-state-troopers-caught-on-camera-probing-genitals-of-women-at-traffic-stops/
    Some cartoons on the Repugs’ 40th attempt to kill off Obamacare.
    http://thepoliticalcarnival.net/2013/08/05/cartoons-of-the-day-gop-trying-to-kill-obamacare/
    The disgusting Repug Governor of Virginia is heading for a fall.
    http://thepoliticalcarnival.net/2013/08/04/in-ominous-sign-for-gov-ultrasound-mcdonnell-his-former-bff-donor-is-cooperating-with-prosecutors/
    The idiots will bever give up!
    http://videocafe.crooksandliars.com/david/rep-yoho-obamacare-racist-because-white-peop
    A very good Ed Schultz interview with Democratic Senator Bernie Sanders on the minimum wage issue.
    http://videocafe.crooksandliars.com/heather/sanders-slams-walmart-family-obscene-taxpa

  17. Section 2 . . .

    This week’s Gun Fail round up.
    http://www.dailykos.com/story/2013/08/03/1227010/-GunFAIL-XXIX
    Hmm. THAT’S a suspension for using performance enhancing supplements!
    http://www.huffingtonpost.com/2013/08/05/mlb-suspensions-drugs-biogenesis_n_3707913.html
    Ed Schultz and Mike Papantonio on the demise of Rush Limbaugh and Sean Hannity.
    http://www.democraticunderground.com/1017136507
    And the winner of the “Little Shit of the Week” award is . .
    http://www.huffingtonpost.com/2013/08/05/justin-bieber-fight-club_n_3708074.html
    How’s this for a rain storm!
    http://www.huffingtonpost.com/2013/08/05/lethbridge-storm-video_n_3708279.html

  18. Joe Hockey refuses to commit to a final busget total becvause he says Treasury’s projections are not credible. Joe wants us to believe his bullshit and spin instead, saying the Coalition’s budget position “will always be stronger than Labor’s”.

    Sloppy has now abandoned that good old ‘interest rates will always be lower under a Coalition government’ mantra and instead is now telling us that higher interest rates are good for us.
    http://www.theguardian.com/world/2013/aug/05/joe-hockey-refuses-budget-total

  19. Or to put it another way, Leone: Hockey has made repeated claims that interest rates will always be lower under a Coalition government. He’s now saying we need higher interest rates. So he’s clearly telling us to vote for the ALP.

  21. It looks like the Coalition’s 2013 campaign is shaping up to be exactly the same as their 2010 effort. They made some grandiose claims about policy detail back then too, but they got all the way through with only one policy idea dragged out of them, the PPL. It looks to me as if they have even less than that this time. Everything they’re talking about is simply an unwinding of an ALP policy with nothing to replace it, or inferior versions of things we already have.

    In other words, they’ve done the bare minimum. I think the reason Hockey is refusing to take it to Treasury for proper costings is because it doesn’t even hang together as a set of policies. It’s just a series of reactions to what the Government is doing, purely for short-term consumption.

    This is their approach to policy detail: “We’ll get rid of the CARBON TAX, and then a number of wonderful things will happen and everyone will be happy and productive.” Or this one: “By pretending that the ALP will spend three times as much on the NBN as they actually will, we can save $60B by doing it our way.” Or this one: “By telling people ‘you don’t need that download speed, you don’t need improvements in education and health, you need a higher interest rate, etc..’ we can make them so happy and productive that wealth just accumulates.”

    But ultimately they’re still running with the, “No, not that,” strategy. They’re just telling everyone that people don’t want the ALP to run the country. There’s no actual alternative being put up. Just vote them out.

    So, three years and no policy work done, nothing actually being offered, nothing’s been costed, none of the brainfarts appear to work at all. What they do have is a sophisticated set of insults and smears, which they’ve been collecting assiduously for a long time. Laziest set of do-nothings ever.

  22. Ewwwww…the Queensland LNP chooses the sleaziest MPs. Well done to the former mistress for revealing all the sordid details. Hell hath no fury like a mistress conned.

    Mr Dowling isn’t the only MP/senator with a mistress/lover and an addiction to dubious texting. I bet there are a lot of worried persons in parliaments all over the country right now.
    http://www.couriermail.com.au/news/queensland/sexting-mp-peter-dowling-sent-explicit-images-to-secret-mistress/story-fnihsrf2-1226691713991

  23. Aguirre,

    But, the Abbott has been promised by Murdoch and his Big rich business sector that when he’s got his arse into the Lodge, they will start employing workers under the New Hope and Opportunity IR policy they’ve got ready to go, that a big rise in the GST will start the money streaming into the coffers so that the company tax cuts can be delivered, schools and hospitals can be privatised and the country can be REWARDED with a second grade, useless Fraudband.

  26. This might explain Latika’s thinking –

    Denise Allen ‏@denniallen 9m
    Cannot believe how rude Steve Austin ABC presenter is to Kevin Rudd….and so sweet to LNP candidate. Blatant bias. #Griffith

  27. People have known about it for a while. I think they wanted to know who would do something,” Dr Douglas told AAP on Tuesday.

    “The premier has got a huge staff and they trawl all the social networking sites. If they didn’t know about this, then they’re pretty slow.”

    Leone, That quote in the CM is telling–the fact that a leaders office monitors sites such as ours.

  29. Joe Hockey, from his own web site, three years ago, explaining why high interest rates are bad and why low interest rates are a result of prudent fiscal management. And what’s more, he’s quoting Treasury and the Reserve Bank to back up his argument. Joe’s crystal ball wasn’t working all that well back then, his predicted interest rate rises never happened.
    http://www.joehockey.com/media/speeches/details.aspx?s=80

    How Joe has changed. Today high interest rates are good and Treasury’s word is not to be trusted. Joe’s sudden embrace of higher interest rates has a lot to do with him realising interest rates will go up during the next term of government regardless of who wins the election and should he be treasurer (God forbid!) he’ll have some explaining to do.

  30. Dear Australian Voters,

    Any party, pollie or general fuckwit who pushes the ‘interest rates will be lower’ line is a moron & you have the right to LOL in their face.

    Fact:
    The govt DOES NOT control interest rates. The independent Reserve Bank Officials do with ZERO input from the govt.

    Fact:
    Interest rates are manipulated to manage inflation. If inflation is above or below the 2-4 % desired inflation band, the RBA raises or lowers interest rates to either rein in inflation or stimulate the economy accordingly.

    Fact:
    Current Official Interest rates are 2.75% (Expected to move to 2.5% at 2pm today).

    Question:
    So why are my home loan interest rates so high?

    Because the c#nts at the bank are recording record profit margins on your home loans. AND DO NOT PASS the full rate cut onto their customers.

  32. Joan Kirner being treated for cancer. In best of hands at Peter Mac in Melb. I admired her pluck as a politician and admire her fight.

  33. Jeebus, Al Palster, that is bad news. I wish her all the best in her fight.

    I got news yesterday that my dearest friend has a very rare and aggressive form of cancer. Only one other case documented in this country.

    The fight is on. Her courage in the face of this battle is inspirational.

  34. Bob Watch

    It’s been a week now since Bob had his attack of vestibular symptoms.

    Bob continues to improve and to eat. He ate TWO breakfasts this morning… smelly Beef n’ Liver, and my own creation, “Chicken Chien”, a combo of chicken breast, Vegeta stock, and a little Gravox just to thicken it up a little. Mix, then boil the shit out of it until you remember to take it off the stove.

    Both brekkies went down and didn’t touch the sides. Then he staggered over to his water bowl and had a big drink.

    He followed me from the lounge room to the kitchen this morning without falling over. OK, so once he got to the kitchen he continued walking in circles, but there was a definite straight line of five metres in-between the circles. Progress!

    He even tried to mug Cozzie as he walked by, but poor old thing, Bob fell over. At least the old evil intent was there. A flash of spirit.

    Bob seems a bit more upbeat and optimistic, more like a dog than a sicko today.

    I continue to pace my own optimism. I’m grateful that he’s shown little improvements each day, but I don’t regard any of these improvements as a prognosis. Both Bob and I are taking things one day at a time.

  35. Mother Milne presser on at the moment – have had to mute the TV as I just cannot listen to her same old rhetoric any more. She is as big a pain in the bum as the abbott imo.

  37. foreverjanice,

    All good with me, recovering from the worst of the flu, working my butt off and getting ready to help my friend fight the big c.

    When I can, I fight the fight against the lies being spruiked wherever I can on social media and put a blow torch to Abbott’s BS.

    Is all well with you?

  39. BB, thanks for the Bob Update – It is wonderful that he continues to improve but I understand your position in taking it one day at a time. There is much joy though in seeing the improvement. He is one very courageous little dog to fight back and of course, he probably wouldn’t bother if he didn’t have such loving support from you.

  40. What can I do with Bob? He’s been looking after me since the October long weekend in 1999. The least I can do is look after him for a while.

  41. Spacey,

    Nothing much changes with me so I consider myself very fortunate that I don’t have any huge fights healthwise as your friend has to deal with. I just have to deal with the relatively minor problems of senile decay which, unless my doctor talks me into taking some drug or other, don’t cause too much distress.

    All the best to you and your friend – whilst I cannot offer help, I will keep you both in my thoughts.

  44. Recently and amazingly it would appear that The Age has finally decided to place the Coalition under a little more scrutiny.
    Probably as a counterpoint to the toxic Murdoch Herald Sun leading up to the election.

  47. Hi there,
    I’d like to reblog this piece on my shitty little blog. Would that be OK?
    I know I could just press the ‘reblog’ button, but I’m a bit old-fashioned and like to ask first.
    Thanks!

  48. Well, rates cut to 2.5%, and the Coalition are all at sea on their attitude.

    On the one hand they want mortgage holders to jump for joy at lower monthly payments, and then go and punish Labor because rates didn’t go up.

    DOES.NOT.COMPUTE.

  49. Oh, and congratulations on surpassing the 1 million hits! That is an awesome milestone.
    On current statistics, it will take me until the year 3282 to reach that, so I’m well-impressed.
    Cheers.

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