How the Australian Labor Party can reduce poverty

Definitions are very important.

According to the ACTU, who themselves quote the OECD, poverty is defined as earning less than 60% of median earnings.  Hence the ACTU is seeking a 10.7% increase – or $72.80 per week increase in the minimum wage.

It would be very simple for Australia to meet this ACTU/OECD target of 60% of median earnings.  All that would be required would be to implement many of the ALP’s policies around a concurrent increase in taxes and government spending.  Not to mention all the anti-productivity measures (regulation, regulation and regulations) and the increase in the superannuation levy.

When all these policies are bedded down, the Australian economy will crater, lifting unemployment and reducing the median wages.  Given it would be next to impossible to reduce the minimum wage, 60% of a much lower median wage will mean that:

no full-time Australian worker lives below the poverty line.

Fewer people working, but the ACTU does not care about them.  All Australian’s poorer.  But hey, anyone who is lucky enough to still be working will not be living under the the ACTU/OECD defined level of poverty.

Hey presto.  Like magic.  Socialism in action.

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23 Responses to How the Australian Labor Party can reduce poverty

  1. Dr Fred Lenin

    When it all collapses under reality conditions the maggots will say,”oooh it looked really good when the narxist professor who wrote it explained it to me “.
    It didnt work because of extreme right sabotage ,we need anti sabotage police ,what about calling them Cheka , checking anti government actions . Now where did I hear that name before?

  2. Bruce of Newcastle

    The best way for the ALP to reduce poverty is to not stand at the next election.

  3. duncanm

    Firstly – note that the goalposts have shifted. ACOSS saysit used to be 50% of median income, but has moved to 60%.

    Then.. they agree with your points:

    Trends in poverty (1999-2015)
    The overall poverty rate fluctuated within a band between 11.5% and 14.4% between 1999-00 and 2015-16. Poverty declined substantially from 13.1% in 1999 to 11.5% in 2003, rose sharply during the boom years to 14.4% just before the Global Financial Crisis (GFC) in 2007, declined to 12.6% in 2009,

    Median household incomes grew very strongly – a 22% increase after accounting for
    inflation – in the boom years from 2003 to 2007, and poverty rose over that period as
    the incomes of many people out of paid work or on low wages failed to keep up.

    Wealthy countries have more poverty…

    .. convention in poverty measurement that people are in poverty if they cannot
    attain a living standard that is acceptable in a given country at a given point in time.

  4. Paulo Nigrum Anatis

    How can the ALP reduce poverty? By changing their mantra from ‘equality of wealth’ to ‘equality of opportunity’ and from ‘collective responsibility’ to ‘individual responsibility’.

  5. Pyrmonter

    The Goalposts do shift – using the older ‘Henderson’ poverty measure, the real value of the poverty line adjusted for CPI measures of inflation has increased something like 2/3 since 1973. That’s approximately 1.15% increase pa. Or, in other words, faster than living standards rose consistently anywhere in history before 1870 and the onset of ‘convergence’ growth as Germany, Japan, Russia and their ilk industrialized and began to catch up with the early industrial economies of the UK and US.

    https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0012/2994789/Poverty-lines-Australia-September-2018_Final.pdf

    And the Left (and swathes of the ranting ‘Right’) insist we’re all getting worse off.

  6. stackja

    ALP/ACTU probably don’t worry about jobless.

  7. Dr Fred Lenin

    You totally misunderstand what they mean by getting rid of poverty they will only do this for the members of the aparat,”no member of the labor aparat will live in poverty during the shortvass government ,”is what they mean . Taking the example of previous devoted peoples leaders ,hawke.,keating,rudd,giliard none of whom are in poverty ,setting an example for devted workers representatives . Concerning the people who vote for them , Textor them ,they wont vote for anyone else no matter how corrupt and incompetent we are .

  8. Bunyip Bill

    What poverty are they talking about? Australians spent twenty four billion dollars on gambling last year. With population of twenty six million people, some too young or too old, incaserated either in prison or other institutions, some with religeous or personal mores against gambling. It leaves but a few who are spending a motza.

  9. Cynic of Ayr

    OT, but who’s going to report on the Demand by 300 muslims that the Government address bad mouthing muslims.

    Note “Demands”

    https://www.michaelsmithnews.com/2019/03/300-muslims-demand-the-australian-government-takes-responsibility-for-islamophobia.html

  10. Isn’t this a bit like how to reduce electricity prices by implementing renewables?

  11. Overburdened

    I have worked in places where the people would welcome Aussie style poverty.
    One of the offspring is working in South Sudan at present and can confirm that their poverty is somewhat different to that at home.

    Two things.
    If you can afford takeaway food, ciggers, a car, tv, tattoos, piss and dope you are not poor.
    The race by the pollies since Whitlam to buy the votes of tax Hoover’s has killed the incentive for people to seek work.

    I have fond memories of standing in the bull run at the abattoir at 04:30 as a 15yo with a swarm of angry men looking for a start.
    If you didn’t get picked you walked around building sites.
    It was a long time ago.

  12. Baldrick

    Taken straight from the Swannynomics & Emmanomics playbook entitled The Magic Pudding Economy.

  13. Up The Workers!

    The tried and true way for the A.L.P. to reduce poverty is simple.

    Just steal however much cash you feel you need, from the H.S.U.

    There is a precedent, as I recall (and once stolen, it never, ever has to be repaid!)

  14. Squirrel

    If Labor truly understood, and reflected on, what is squeezing the budgets of middle and lower income households they would do everything they can to eliminate and reduce over-regulation and bureaucratic duplication (and sometimes triplication), and enable genuine, healthy competition in sectors of the economy which tend to be populated by people who think that competition is a good idea for everyone except them.

  15. Overburdened

    I stand to be corrected.
    I think I remember Karl Marx writing words to the effect that to each is allocated according to their contribution.
    I think this is a reasonable proposition if you are living in a cave and hand to mouth.
    The issue at hand is that every bastard wants the same as everybody else regardless of their lack of effort.

  16. Seza

    Overburdened #comment-2970953
    I waited a year later to turn up at Angliss’ meatworks in Footscray. A 16 year-old pretending to be 18, helped by my size. Commuting by train, hoping to get job for the holidays. I always say it trained me for many of my later jobs, as one of the first was in a booth washing sheep’s behinds as they swung past on the chain. “Dealing with ar$eholes? Check”

  17. Tel

    Suppose the richest 10% of Australian earners went to live in Singapore … with a lower median, wage poverty would go away!

  18. Overburdened

    Sera
    Never was the story of the tree full of monkeys truer.
    I found starting at the bottom was character building.
    Not always for the good sometimes.

  19. Overburdened

    That’d be Seza.
    Fn iPad

  20. Overburdened

    When the flight of capital happens and there won’t be enough stability to ensure supply chains and infrastructure, Australians (that stay) will all be equal and justice will be served.

  21. sfw

    What have you been up to Spartacus? Via instapundit.

    INVESTIGATE THIS: 2020 Democrats Are Using a Donation Portal Known for Accepting Fraudulent Donations. “Cory Booker’s campaign accepted a donation from ‘I am Spartacus’ using a bogus address.”

  22. Overburdened

    shorten has declared that the biggest determinant in a persons social trajectory is whether or not one has rich parents.
    Why did it take him so long to stumble on to this axiom?
    What a fuckwit.

  23. Walter Plinge

    Full time Australian? I didn’t know there are part-time Australians. Oh hang on…what the author meant is “no Australian full-time worker…”.

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