The iPad is out! I can die in peace now, knowing that human kind is in its way to a better future. Yes, siree.
Newspapers all over this sunburnt land were jubilantly reporting “long lines in Europe and Asia to buy Apple's iPad”. Oh boy, oh boy, oh boy! What excitement!
You probably saw the images on TV: long queues of customers snaking outside Apple shops in Australia and Japan hours before their opening and similar huddled masses turned out at stores in six European countries.
Is there anything more emblematic of this brave new world we live in? Think about it: ordinarily, people hate queuing, as any unfortunate “customer service” officer will readily tell you. I know that, I’ve been there.
Yet, here we have thousands of anxious people, happily queuing for the opportunity of coughing up at least US$ 499 for the latest miracle gadget.
And remember: we’re supposed to be just leaving the greatest global recession since the 1930s, with Europe in the grip of what could easily turn out to be the second chapter in the GFC (or should I say iGFC v2.0?)
So, what’s so great about the iPad, anyway?
Frankly, I haven’t laid my hands on one of those gadgets. And, there ain’t no person less qualified to review it than yours truly. God, I’m yet to own my first garden-variety, no-frills mobile phone!
So, I’m ready to accept anyone’s word that this contraption is great, beautifully designed and user-friendly, too. In other words: the best thing since the invention of sandwich bread.
Still, I have difficulty understanding this generalized enthusiasm. Maybe I’m just a bitter old fart, but to me this all looks kinda childish.
Of course, some people have plenty reasons to feel genuinely excited about the iPad.
For starters, the good people at Apple, obviously. Judging by their 8GB iPhone, which started selling at US$ 599 in July 2007, but now costs US$ 99 (hopefully, still profitable), they could make a buck or two. [1]
And we might be justified to lay our worries to rest, because the market, in its infinite wisdom, provides the best testimony to Apple Inc. financial health: its 52-week low was 52 weeks ago ($132.03 precisely on the 28/05/2009) while its last closing price was on the 28/05/2010, at $256.88. 94.56% up! [2]
Another person who may feel legitimately excited about the iPad is Rupert Murdoch:
“The multi-functional device is tipped by some pundits to revitalise media and publishing, with many major newspapers and broadcasters launching applications. (…)
Newspaper mogul Rupert Murdoch has said the iPad has the potential to save the newspaper industry”. [3]
“Not happy, Jobs!” Or is it “no happy jobs”?
Still, I don’t know how happy Chinese workers ought to feel about this whole thing.
You see, Apple Inc. contracts the production of its wonderful gadgets to overseas factories.
The iPhone itself is assembled in China by Foxconn (whose parent company is the Taiwan-based Hon Hai Precision). In fact, a host of other large corporations have extensive dealings with Hon Hai, including Hewlett-Packard, Dell, Sony, Nokia, Motorola and Nintendo.
As you might imagine, although the products exhibit the customer’s logos, they were produced by the same people!
Between 01/01/2010 and 27/05/2010, 11 Foxconn workers killed themselves, at or near their workplaces. Apparently, by jumping from buildings.
Some people could be tempted to conclude that this suicide wave might be indicative of severe industrial relations problems in Foxconn. After all, the media has reported on young workers having to work 12-hour long shifts, 6 days a week, for a monthly pay of $300 (overtime included). [4]
However, as the editorial team of The Wall Street Journal online (which belongs to Mr. Murdoch's media empire) stated: “suicide is too complex an issue to rush to conclusions”. [5]
According to the same WSJ article, these suicides are best explained by non-work related causes: “love affairs gone wrong”, “adjustment difficulties” created by a mass-society, lack of family support.
Undoubtedly, low pay and terrible working conditions commonly associated to sweatshops are too simplistic an explanation to be taken seriously, even though the article also revealed that “a young manager killed himself last July [i.e. July 2009] after an Apple iPhone prototype went missing, and his final messages to friends suggest he had been interrogated and beaten”.
Nor that this was an isolated incident, either. The same WSJ editorial team goes on to say: “In a separate incident the following month [i.e. August 2009], the company confirmed its guards beat employees after the incident was caught on video.”
However, if one gives credence to the WSJ (and I have no particular reason to doubt it), Foxconn is far from your garden-variety sweatshop. The campus contains a hospital and a bookstore. Karaoke contests are organized for its workers and local streets are palm-tree lined. [6]
More importantly, management has taken measures to remedy the situation. For starters, nets have been installed around its buildings, so that workers would be caught if they do jump. As importantly, workers have been asked to sign a letter pledging they will not try to harm themselves and “saying that workers or their families, wouldn't sue Hon Hai if a worker died or was injured in a suicide attempt”. [7]
Furthermore, on the 29/05/2010, Hon Hai/Foxconn management decided to increase wages to its Chinese workforce by an average of 20%, in a measure described by Hon Hai/Foxconn management as “unrelated to the suicide wave” and to the enquiries made by their foreign clients (among whom was Apple). I just hope such generosity will not endanger Hon Hai/Foxconn’s financial health. Time and markets shall tell.
So, it is entirely possible that pay and working conditions in Hon Hai/Foxconn are not exceptionally worse than in the whole of China. In fact, they might be among the best.
The road to Monowitz.
Most readers probably have never heard of Monowitz. I can’t blame them.
Monowitz was built as a work camp, in what today is Poland, at the request of IG Farben.
In this pioneering Public-Private Partnership, the private sector contribution made by IG Farben consisted on the installations themselves, equipment and raw material.
Other large corporations, eager to fulfil their patriotic duty, like Siemens and Krupp, also arrived at similar agreements. In fact, the Auschwitz-Birkenau complex had 45 subcamps.
And the public sector, that is, the Nazi Government, through the SS, agreed to provide onsite security, and slave workers (charging IG Farben 3 Reich Marks a day for each unskilled worker, 1.5 for children, and 4 for skilled workers) to work in IG Farben’s synthetic rubber production facility.
The products, obviously, had IG Farben’s name attached to them.
Workers who did not perform satisfactorily were beaten to death on the spot (sometimes at the request of visiting executives) or sent to Birkenau, where they would end sooner or later, anyway, as a result of overwork, starvation, disease, mistreatment and cold. [8]
I suppose no sweatshop today can really be compared to Monowitz: undoubtedly we have come a long way.
But I fear for the future and I hope apologists of globalization and outsourcing, some of whom describe themselves as leftists, are right. They better be.
[1] iPhone Wikipedia entry. Accessed 29/05/2010.
http://en.wikipedia.org/wiki/IPhone
[2] Data from http://online.wsj.com
[3] Carole Laundry. iPad-mania as thousands queue for global roll-out. SMH. 29/05/2010.
http://news.smh.com.au/breaking-news-technology/ipadmania-as-thousands-queue-for-global-rollout-20100529-wlsj.html
[4] I promise not to kill myself: Apple factory workers 'asked to sign pledge'. SMH. 26/05/2010.
http://www.smh.com.au/technology/technology-news/i-promise-not-to-kill-myself-apple-factory-workers-asked-to-sign-pledge-20100526-wddd.html
[5] The Foxconn Suicides. 28/05/2010. WSJ online. Accessed on 29/05/2010.
http://online.wsj.com/article/SB10001424052748704269204575270031332376238.html
[6] Jason Dean and Ting-I Tsai. Apple, H-P to Examine Asian Supplier after String of Deaths at Factory. 27/05/2010. WSJ online. Accessed 29/05/2010.
http://online.wsj.com/article/SB10001424052748704026204575267603576594936.html
[7] It appears that workers are no longer required to sign the letter.
[8] Monowitz concentration camp. Wikipedia entry. Accessed 29/05/2010.
http://en.wikipedia.org/wiki/Monowitz
Saturday, 29 May 2010
Friday, 26 March 2010
Why people kept jobs in this recession: Uh oh! Here we go again...
So, the name of the game is workplace flexibility. Why I am not surprised?
The esteemed Business Council of Australia asks for continued "support FLEXIBILITY in workplace relations policy, given its importance to the economy". [1]
Surprisingly, the opposition leader, Mr. Abbott, agrees with the BCA: "The phrase Work Choices is dead. No one will ever mention it again, but, look, we have to have a free and FLEXIBLE economy." [2]
After being credited with saving Australia from an economic collapse and devastating unemployment, the RBA seems to recognize that this wasn't quite so: "This outcome [low unemployment] is partly explained by the greater degree of FLEXIBILITY in employment and wage-setting practices, compared with those in the 1980s and 1990s recessions". [3]
And even our leftist journalists, as Ross Gittins, seem to be warming to this flexibility thing: "Why did employers respond to the downturn so differently this time? The Reserve says the first reason is because they could: reforms of the labour market going back even before the Keating government's shift of bargaining to the enterprise level have made relations more FLEXIBLE, thus making lesser-of-two-evils style deals more possible". [4]
Will surprises never end?
The bureaucrats.
Let's start with the RBA:
"This outcome [lower unemployment] is partly explained by the greater degree of flexibility in employment and wage-setting practices, compared with those in the 1980s and 1990s recessions. Following a succession of reforms over recent decades, rigidities in the labour market were significantly reduced. THIS MADE IT EASIER FOR FIRMS AND EMPLOYEES TO NEGOTIATE WORK AND PAY ARRANGEMENTS THAT ENABLED FIRMS TO PRESERVE JOBS during a period of subdued activity, partly by reducing average hours worked. While lower hours reduce compensation per employee, they avoid the significant social and economic costs associated with unemployment, including detachment from the labour force, skill atrophy and reliance on government assistance." [5]
So, this miracle was the product of a mutually beneficial agreement between employees and employers: before sacking their staff when the downturn started, employers consulted them and offered them a reduction in working times/wages as an alternative.
After a negotiation, employees decided to take on the offer.
This might sound absurd to anyone who has actually worked for a living, but I am sure the RBA has the statistics at hand to prove that these negotiations took place.
Or maybe not.
The Journo.
This might be why Mr. Gittins found it necessary to introduce his own explanation: "If you work 38 hours a week and I put you onto a four-day week, that means you change categories from full-time to part-time". [6]
So, it wasn't so much a negotiation, but a decision coming from "above": you go part-time or "you're fired".
Regardless, old Ms. A was working full-time until the crisis, was forced to accept a part-time, but she at least is still working. Everyone is happy. And this is what the RBA and ABS say, right?
Not quite. The exact same result (almost stable employment) could be achieved if old Ms. A was given the flick and remained unemployed, but her position was taken up by young B, who was unemployed, but is now replacing Ms. A, only on a part-time or even casual basis, on lower wages: less hours worked, but the same number of people employed(*).
Mr. Gittins recognizes this possibility, but draws a questionable conclusion from it: "reforms of the labour market (...) have made relations more flexible, thus making LESSER-OF-TWO-EVILS style deals more possible". [7]
Maybe Mr. Gittins should ask Ms. A her opinion: I can't see why this is so hot for her. In fact, I don't think young B is doing that well, either: part-time and lower wages.
On the other hand, I can understand why Ms. B's former employer is so enthusiastic about this. This whole thing might well be the lesser of two evils for Ms. A and young B, but it sure sounds good to their employer!
Perhaps is that just me?
Evidence to the contrary.
Well, not really. Other media and journalists have focused on this topic:
"Announcing its latest first half profit - a record $100 million - the retailer David Jones confirmed that a variation on this strategy [replace full-time workers with part-time/casuals] was the key to its profits during the downturn. DJ's chief executive Mark McInnes said the company hasn't employed a single full-time retail salesperson since 2004 - so it's been able to adjust the working hours of it store staff to match sales volumes". [8]
Imagine that Ms. A was sacked last June, and young B was hired around that time. They could have been working for DJ!
Academic circles, even in Australian limestone universities, have reported on this in releases widely available to the public:
"During the global financial crisis workers who stayed in their jobs did not reduce their working hours, despite widespread government and commentator claims that cuts in hours had helped stem job losses during the downturn. (…)The study found no evidence to support the contention that job losses have been mitigated by de facto work-sharing. The most significant change in work hours was experienced by those who changed jobs. Workers who entered new jobs during the study period were also worse off in other ways, the researchers found. Some 35 per cent of those who changed jobs experienced a cut in pay. Workers who entered the job market or who changed jobs in the past year were also more likely than other workers to enter into precarious forms of employment, such as casual jobs without entitlements to paid leave." [9]
A copious body of scientific literature, analyzing both the Australian and overseas cases, has been produced since at least 10 years ago, warning of the consequences of this "workplace flexibility":
"Since the beginning of the 1990s Australia has experienced a gradual but far-reaching process of labour market deregulation. (...) Labour market deregulation is amplifying existing trends to growth in precarious employment, wage dispersion and the development of a low-pay sector amongst full-time employees". [10]
Even private sector experts have warned that this phenomenon is real and is affecting the Australian workforce. [11]
And, in spite of the evidence, we find business circles, political parties, governments and regulators remain oblivious to the noxious effects of these policies.
It's understandable that business interests, and their direct promoters in Parliament, have incentives to ignore the devastating effects these policies have for a large (maybe the largest) proportion of the population. In other words: they can't hear, because they don't want to.
It's much less understandable that regulators, bureaucrats, and journalists still repeat the same mumbo jumbo as if it was the truth revealed by god on Mount Sinai.
Regulators and bureaucrats are supposed to be public servants, and they are failing in their duty to serve the whole public. Maybe this is a product of ideological blindness. I would like to be proven wrong here, but I am afraid I don't trust their competence.
But it's in Mr. Gittins' case, that this becomes particularly disappointing, as I am sure he means well. I would not like to use the words "gullibility", and "sloppiness" in relation to Mr. Gittins, but what alternative is left?
PS: I would advise Australian workers to learn yoga, not only to learn how to contort their bodies (and maybe, just maybe, get a job in the Cirque du Solei), but also for the ability to withstand deprivation.
NOTE: (*) Correction added, with thanks to Sean Carmody.
SOURCES:
[1] BCA President Graham Bradley's interview on the Sky News 'PM Agenda' Program. BCA. 05/03/2010.
http://www.bca.com.au/Content/101662.aspx
[2] Jacob Saulwick. Forgive my sins and let me start anew, leader says. SMH. 02/12/2009.
http://www.smh.com.au/opinion/politics/forgive-my-sins-and-let-me-start-anew-leader-says-20091201-k3xs.html
[3] Michael Plumb, Mark Baker and Gareth Spence. The labour market during the 2008-2009 downturn. RBA Bulletin - March Quarter 2010.
http://www.rba.gov.au/publications/bulletin/2010/mar/pdf/bu-0310-1.pdf
[4] Ross Gittins. Why people kept jobs in this recession SMH. 27/03/2010.
http://www.smh.com.au/business/why-people-kept-jobs-in-this-recession-20100326-r34s.html
[5] Plumb, Baker and Spence. Op. cit. page 2.
[6] Gittins. Op cit.
[7] Gittins. Op cit.
[8] Stephen Long. Employment myths cloud Social Trends Survey. ABC. 25/11/2009.
http://www.abc.net.au/news/stories/2010/03/18/2849017.htm?site=thedrum
[9] Australia at work: in a changing world. Workplace Research Centre, The University of Sydney. 26/11/2009.
http://www.wrc.org.au/index.php
[10] Iain Campbell, Peter Brosnan. Labour market deregulation in Australia: the slow combustion approach to workplace change. International Review of Applied Economics, 1999, vol. 13, issue 3, pages 353-394
http://www.informaworld.com/smpp/content~content=a713673027~db=all
[11] Australia's underemployment rate growing: experts. SMH 26/03/2010.
http://www.smh.com.au/small-business/trends/australias-underemployment-rate-growing-experts-20100326-r1a5.html
The esteemed Business Council of Australia asks for continued "support FLEXIBILITY in workplace relations policy, given its importance to the economy". [1]
Surprisingly, the opposition leader, Mr. Abbott, agrees with the BCA: "The phrase Work Choices is dead. No one will ever mention it again, but, look, we have to have a free and FLEXIBLE economy." [2]
After being credited with saving Australia from an economic collapse and devastating unemployment, the RBA seems to recognize that this wasn't quite so: "This outcome [low unemployment] is partly explained by the greater degree of FLEXIBILITY in employment and wage-setting practices, compared with those in the 1980s and 1990s recessions". [3]
And even our leftist journalists, as Ross Gittins, seem to be warming to this flexibility thing: "Why did employers respond to the downturn so differently this time? The Reserve says the first reason is because they could: reforms of the labour market going back even before the Keating government's shift of bargaining to the enterprise level have made relations more FLEXIBLE, thus making lesser-of-two-evils style deals more possible". [4]
Will surprises never end?
The bureaucrats.
Let's start with the RBA:
"This outcome [lower unemployment] is partly explained by the greater degree of flexibility in employment and wage-setting practices, compared with those in the 1980s and 1990s recessions. Following a succession of reforms over recent decades, rigidities in the labour market were significantly reduced. THIS MADE IT EASIER FOR FIRMS AND EMPLOYEES TO NEGOTIATE WORK AND PAY ARRANGEMENTS THAT ENABLED FIRMS TO PRESERVE JOBS during a period of subdued activity, partly by reducing average hours worked. While lower hours reduce compensation per employee, they avoid the significant social and economic costs associated with unemployment, including detachment from the labour force, skill atrophy and reliance on government assistance." [5]
So, this miracle was the product of a mutually beneficial agreement between employees and employers: before sacking their staff when the downturn started, employers consulted them and offered them a reduction in working times/wages as an alternative.
After a negotiation, employees decided to take on the offer.
This might sound absurd to anyone who has actually worked for a living, but I am sure the RBA has the statistics at hand to prove that these negotiations took place.
Or maybe not.
The Journo.
This might be why Mr. Gittins found it necessary to introduce his own explanation: "If you work 38 hours a week and I put you onto a four-day week, that means you change categories from full-time to part-time". [6]
So, it wasn't so much a negotiation, but a decision coming from "above": you go part-time or "you're fired".
Regardless, old Ms. A was working full-time until the crisis, was forced to accept a part-time, but she at least is still working. Everyone is happy. And this is what the RBA and ABS say, right?
Not quite. The exact same result (almost stable employment) could be achieved if old Ms. A was given the flick and remained unemployed, but her position was taken up by young B, who was unemployed, but is now replacing Ms. A, only on a part-time or even casual basis, on lower wages: less hours worked, but the same number of people employed(*).
Mr. Gittins recognizes this possibility, but draws a questionable conclusion from it: "reforms of the labour market (...) have made relations more flexible, thus making LESSER-OF-TWO-EVILS style deals more possible". [7]
Maybe Mr. Gittins should ask Ms. A her opinion: I can't see why this is so hot for her. In fact, I don't think young B is doing that well, either: part-time and lower wages.
On the other hand, I can understand why Ms. B's former employer is so enthusiastic about this. This whole thing might well be the lesser of two evils for Ms. A and young B, but it sure sounds good to their employer!
Perhaps is that just me?
Evidence to the contrary.
Well, not really. Other media and journalists have focused on this topic:
"Announcing its latest first half profit - a record $100 million - the retailer David Jones confirmed that a variation on this strategy [replace full-time workers with part-time/casuals] was the key to its profits during the downturn. DJ's chief executive Mark McInnes said the company hasn't employed a single full-time retail salesperson since 2004 - so it's been able to adjust the working hours of it store staff to match sales volumes". [8]
Imagine that Ms. A was sacked last June, and young B was hired around that time. They could have been working for DJ!
Academic circles, even in Australian limestone universities, have reported on this in releases widely available to the public:
"During the global financial crisis workers who stayed in their jobs did not reduce their working hours, despite widespread government and commentator claims that cuts in hours had helped stem job losses during the downturn. (…)The study found no evidence to support the contention that job losses have been mitigated by de facto work-sharing. The most significant change in work hours was experienced by those who changed jobs. Workers who entered new jobs during the study period were also worse off in other ways, the researchers found. Some 35 per cent of those who changed jobs experienced a cut in pay. Workers who entered the job market or who changed jobs in the past year were also more likely than other workers to enter into precarious forms of employment, such as casual jobs without entitlements to paid leave." [9]
A copious body of scientific literature, analyzing both the Australian and overseas cases, has been produced since at least 10 years ago, warning of the consequences of this "workplace flexibility":
"Since the beginning of the 1990s Australia has experienced a gradual but far-reaching process of labour market deregulation. (...) Labour market deregulation is amplifying existing trends to growth in precarious employment, wage dispersion and the development of a low-pay sector amongst full-time employees". [10]
Even private sector experts have warned that this phenomenon is real and is affecting the Australian workforce. [11]
And, in spite of the evidence, we find business circles, political parties, governments and regulators remain oblivious to the noxious effects of these policies.
It's understandable that business interests, and their direct promoters in Parliament, have incentives to ignore the devastating effects these policies have for a large (maybe the largest) proportion of the population. In other words: they can't hear, because they don't want to.
It's much less understandable that regulators, bureaucrats, and journalists still repeat the same mumbo jumbo as if it was the truth revealed by god on Mount Sinai.
Regulators and bureaucrats are supposed to be public servants, and they are failing in their duty to serve the whole public. Maybe this is a product of ideological blindness. I would like to be proven wrong here, but I am afraid I don't trust their competence.
But it's in Mr. Gittins' case, that this becomes particularly disappointing, as I am sure he means well. I would not like to use the words "gullibility", and "sloppiness" in relation to Mr. Gittins, but what alternative is left?
PS: I would advise Australian workers to learn yoga, not only to learn how to contort their bodies (and maybe, just maybe, get a job in the Cirque du Solei), but also for the ability to withstand deprivation.
NOTE: (*) Correction added, with thanks to Sean Carmody.
SOURCES:
[1] BCA President Graham Bradley's interview on the Sky News 'PM Agenda' Program. BCA. 05/03/2010.
http://www.bca.com.au/Content/101662.aspx
[2] Jacob Saulwick. Forgive my sins and let me start anew, leader says. SMH. 02/12/2009.
http://www.smh.com.au/opinion/politics/forgive-my-sins-and-let-me-start-anew-leader-says-20091201-k3xs.html
[3] Michael Plumb, Mark Baker and Gareth Spence. The labour market during the 2008-2009 downturn. RBA Bulletin - March Quarter 2010.
http://www.rba.gov.au/publications/bulletin/2010/mar/pdf/bu-0310-1.pdf
[4] Ross Gittins. Why people kept jobs in this recession SMH. 27/03/2010.
http://www.smh.com.au/business/why-people-kept-jobs-in-this-recession-20100326-r34s.html
[5] Plumb, Baker and Spence. Op. cit. page 2.
[6] Gittins. Op cit.
[7] Gittins. Op cit.
[8] Stephen Long. Employment myths cloud Social Trends Survey. ABC. 25/11/2009.
http://www.abc.net.au/news/stories/2010/03/18/2849017.htm?site=thedrum
[9] Australia at work: in a changing world. Workplace Research Centre, The University of Sydney. 26/11/2009.
http://www.wrc.org.au/index.php
[10] Iain Campbell, Peter Brosnan. Labour market deregulation in Australia: the slow combustion approach to workplace change. International Review of Applied Economics, 1999, vol. 13, issue 3, pages 353-394
http://www.informaworld.com/smpp/content~content=a713673027~db=all
[11] Australia's underemployment rate growing: experts. SMH 26/03/2010.
http://www.smh.com.au/small-business/trends/australias-underemployment-rate-growing-experts-20100326-r1a5.html
Saturday, 13 March 2010
Liebe ist fuer alle da (II)
In a personal conversation a friend argued that Spanish photographer Eugenio Recuenco's cover art for the newest Rammstein album, Liebe ist fuer alle da, is much more in line with early baroque painters like Caravaggio.
For instance, the setting (lighting, background, surroundings) in Recuenco's photos is very similar to that in Caravaggio's The Calling of St. Matthew.
Caravaggio, unlike the Flemish and Dutch masters, did not shy away from representing grotesque topics (similar to Goya), and, much more to the point, Recuenco:
Caravaggio's Severed head of Medusa
Judith beheading Holofernes
Although not fully convinced, I admit my friend has a strong argument (thanks, mate). Then, again, I am no art expert.
Now, with Rammstein's lyrics... There is a shared characteristic in most of Rammstein's lyrics: they are a bit like seeing the world through the eyes of monsters. Rammstein represents what I call the Pathological Dada.
And although the view from Rammstein's eyes is far from sympathetic, its mere being empathetic makes the experience unsettling.
Let me give an example: as in the Reise, Reise album, there is a theme evocative of a criminal event: Wiener Blut (there is another theme evocative of Austria, but it's otherwise unrelated: Donaukinder).
A common translation is "Viennese spirit", as in Johann Strauss' operetta and waltz. But these Rammstein guys have a perverse sense of humor: it also can be translated, much more literally, as "Viennese blood". This gives you a general idea of the mood and content of the song.
Although not explicitly mentioned, there are elements (apart from the title itself) in the song alluding to the notorious Joseph Fritzl case: a brief infantile giggling in the background, allusions to darkness, a basement and suffering…
This is not the first time Rammstein finds inspiration in cases like this. In Reise, Reise, there was Mein Teil, inspired by the "German cannibal" case.
Unlike Mein Teil, though, which had some black humor and sarcasm sprinkled around what was also an extremely creepy song, Wiener Blut is strictly sinister, unpleasant and gloomy.
Don't get me wrong: it's not a bad song (although I don't know if the adjective "good" is appropriate, either). It achieves, in my opinion, what its authors aimed at: to disturb the listeners by confronting us with aspects of reality we know exist, but are beyond our daily experience.
This doesn't mean that all Rammstein songs are equally effective. As in previous releases, there is a song that seems aimed at shocking by its mere shock value: Pussy. It shares similarities with the older Te Quiero Puta (I Want you, Whore). As the title suggests, it's not fully in German. As I see it, it's the weakest song in the album, although I wouldn't be surprised it was a hit in nightclubs (not in radios, though, as it uses some English "forbidden" words, pronounced with a distinct German accent, that makes them, somewhat comical).
But the song that speaks more to me, given my ideological leanings, is Mehr (i.e. "more"). I suppose for a band that dwells on the pathological and morbose, it was just a matter of time until a song about what makes capitalism tick appeared.
In Reise, Reise, we already had Amerika and Moskau (which from a humorous, and pained points of view, respectively, alluded to globalization and the move towards a "free market" society in the former USSR) we had hints to this. But Mehr attempts to go to the core of what capitalism is:
All die anderen
haben so wenig.
Gebt mir auch das noch
sie brauchen's eh nicht
(Everybody else/has so little/Give me that too/they don't need it).
I don't know why, but I could imagine a few politicians and talking-heads starring in a video clip for this song. If the Rammstein agent reads this, please remember, the idea was mine: Gebt mir geld und credit, bitte.
PS: There are other remarkable songs in this release. I will comment on them later on.
For instance, the setting (lighting, background, surroundings) in Recuenco's photos is very similar to that in Caravaggio's The Calling of St. Matthew.
Caravaggio, unlike the Flemish and Dutch masters, did not shy away from representing grotesque topics (similar to Goya), and, much more to the point, Recuenco:
Caravaggio's Severed head of Medusa
Judith beheading Holofernes
Although not fully convinced, I admit my friend has a strong argument (thanks, mate). Then, again, I am no art expert.
Now, with Rammstein's lyrics... There is a shared characteristic in most of Rammstein's lyrics: they are a bit like seeing the world through the eyes of monsters. Rammstein represents what I call the Pathological Dada.
And although the view from Rammstein's eyes is far from sympathetic, its mere being empathetic makes the experience unsettling.
Let me give an example: as in the Reise, Reise album, there is a theme evocative of a criminal event: Wiener Blut (there is another theme evocative of Austria, but it's otherwise unrelated: Donaukinder).
A common translation is "Viennese spirit", as in Johann Strauss' operetta and waltz. But these Rammstein guys have a perverse sense of humor: it also can be translated, much more literally, as "Viennese blood". This gives you a general idea of the mood and content of the song.
Although not explicitly mentioned, there are elements (apart from the title itself) in the song alluding to the notorious Joseph Fritzl case: a brief infantile giggling in the background, allusions to darkness, a basement and suffering…
This is not the first time Rammstein finds inspiration in cases like this. In Reise, Reise, there was Mein Teil, inspired by the "German cannibal" case.
Unlike Mein Teil, though, which had some black humor and sarcasm sprinkled around what was also an extremely creepy song, Wiener Blut is strictly sinister, unpleasant and gloomy.
Don't get me wrong: it's not a bad song (although I don't know if the adjective "good" is appropriate, either). It achieves, in my opinion, what its authors aimed at: to disturb the listeners by confronting us with aspects of reality we know exist, but are beyond our daily experience.
This doesn't mean that all Rammstein songs are equally effective. As in previous releases, there is a song that seems aimed at shocking by its mere shock value: Pussy. It shares similarities with the older Te Quiero Puta (I Want you, Whore). As the title suggests, it's not fully in German. As I see it, it's the weakest song in the album, although I wouldn't be surprised it was a hit in nightclubs (not in radios, though, as it uses some English "forbidden" words, pronounced with a distinct German accent, that makes them, somewhat comical).
But the song that speaks more to me, given my ideological leanings, is Mehr (i.e. "more"). I suppose for a band that dwells on the pathological and morbose, it was just a matter of time until a song about what makes capitalism tick appeared.
In Reise, Reise, we already had Amerika and Moskau (which from a humorous, and pained points of view, respectively, alluded to globalization and the move towards a "free market" society in the former USSR) we had hints to this. But Mehr attempts to go to the core of what capitalism is:
All die anderen
haben so wenig.
Gebt mir auch das noch
sie brauchen's eh nicht
(Everybody else/has so little/Give me that too/they don't need it).
I don't know why, but I could imagine a few politicians and talking-heads starring in a video clip for this song. If the Rammstein agent reads this, please remember, the idea was mine: Gebt mir geld und credit, bitte.
PS: There are other remarkable songs in this release. I will comment on them later on.
Monday, 22 February 2010
Uninterested Advice.
Well, after a long hiatus, let's bring a long story!
As the Australian and global economies are already out of the woods, as we all know, it's time to resume growth.
This is the Business Council of Australia (BCA, "CEOs of 100 of Australia's top companies" [1]) uninterested advice:
"The federal government has committed itself to fiscal discipline and a high-productivity future. The Budget must include a plan to reduce the level of government involvement in the economy. It must shift the focus of revenue and spending to support business growth, job creation and workforce participation." My emphasis [2].
The reader might remember the Rudd government has vaguely stated its intention to keep federal budget bound to 2% real increases. Well, this is the commitment alluded, and the BCA is asking for a change in the way government money is raised and spent, to flesh out the Rudd government commitment.
What kind of changes is the BCA talking about?
"The BCA endorses the government's strategy to return the budget to surplus via expenditure constraint and savings rather than higher taxes". My emphasis [2].
Now, the Federal government is yet to reveal the detailed contents of the Henry Tax Review report, which not surprisingly, deals with taxes. Extra-officially a proposal to reduce income tax has leaked to the media. The shortfall in revenue, according to what has transpired, would be covered by a tax on natural resources rent (a.k.a. a tax on mining). With the statement above, I'm sure the BCA doesn't mean they want this "tax on mining" to be scrapped.
However, the BCA has made clear what taxes should be reduced, and what should increase:
"The essence of the BCA's position is that tax reforms arising from the Henry review should reduce the reliance on corporate income tax (and capital income taxes more broadly), increase the reliance on the least distortive taxes (notably consumption and property taxes) and not increase taxes on labour income". My emphasis [3].
Among those "least distortive taxes" is the GST.
So, if the Budget is (A) to be on surplus [4], but (B) new or increased corporate taxes are not desired, this suggests that government spending must also be cut, not simply "constrained" as stated above (unless the idea were to plug the deficit just with an increased GST).
If you've followed this far, you might be asking: "Okay, then, to cut government spending where?"
Well, the BCA suggests several places:
1. "Progressively increase the qualifying age for the age pension to 67 years was a step in the right direction - more difficult decisions of a structural nature like this will be required". Although the BCA does not specify a more appropriate retirement age, it does state that "as a purely illustrative exercise, it is estimated that the traditional retirement age of 65 years would need to increase to 73 years by 2049 in order to ensure that the age dependency ratio at that time is equal to its current proportion of 5 people of working age for every 1 retired". My emphasis [5].
2. "To meet its expenditure commitments, the government should consider ways to tighten eligibility and apply means testing to some of its larger payment items (…)".
3. "(…) And subject unspent stimulus funding to a re-assessment against other fiscal priorities and Australia's future needs".
4. "In this context, funding in a mixed public and private system represents a key lever for shaping and directing the health system". My emphasis in all items [6].
The first item requires no further comment, as it is self-explanatory,
In regards to the second item, as human memory is a risky thing, I will remind the reader that last year, as part of its stimulus package, the federal government relaxed the eligibility criteria for unemployment benefits (Newstart Allowance), without increasing the fortnightly amount paid.
This way, an unemployed homeowner couple with combined assets exceeding $11,000 and up to $252,500, is able to claim up to $411.50 each partner per fortnight. But in this case, as the asset amount exceeds $11,000, the payments may be delayed. And payments are reduced by at least $0.50 by each dollar income the couple might have in excess of $62 per fortnight (say, interests on savings) [7].
The third item is also quite self-explanatory, but I will make a little comment: the idea is to cancel works for which the federal government has already allocated funds, but whose execution has not started.
The fourth item is by far the vaguest. Regardless, I am sure it has nothing to do with the sudden Opposition intention to privatize Medibank Private, should they win the next federal elections. [8]
Although the document under analysis is a Budget Submission, and thus should deal on fiscal policy issues, the BCA goes further with items unrelated to federal budgets, such as "the need for ongoing structural reforms to our system of workplace relations and enhancements to our education and training base". [9]
As before, I will draw the reader's attention to the extraordinary coincidence between this statement and Mr. Abbott's intention to restore the system of individual work contracts.
Concluding remarks
The BCA Submission is interesting, for what it contains and for what it leaves out.
In spite of its recommendations against new taxes, it leaves out the ETS, called by Mr. Abbott the "new great tax on everything". Does this mean the BCA considers the ETS is definitely dead? Or they don't mind this specific "new great tax on everything"?
To increase the retirement age, as suggested, unless made effective immediately, will do nothing to reduce spending in the near future, which is the scope of a federal budget. But it comes at a price that no government would be happy to pay in an election year.
How much savings can tighter eligibility criteria for Newstart Allowance bring? Hard to say, but it shouldn't be much: if the employment situation is improving as much as ABS statistics say, unemployment benefits should be falling already, automatically.
The BCA doesn't specify what kind of workplace reform is required, unless one were to assume that Mr. Abbott's words reflect the institutional opinion of the BCA. Still, given that the Australian economy has performed as magnificently as we had been led to believe, there seems to be little point in reforms: it ain't broken, so don't fix it.
Interestingly, the BCA has not made any pronouncement about public sectors lay offs (an obvious way of saving), as the opposition, in the person of Mr. Joyce, has.
Similarly, other than it needs to be cut, little detail is given about the BCA position on health spending, so it's risky to comment on this. Does the opposition Medibank proposal fit in with the BCA Submission?
Given that new taxes or increased corporate, capital and personal income taxes are off limits, I suppose this leaves the Federal government with few options, other than to raise the GST rate.
As with cutting down Federal spending in social security in general, this would be risky in an election year. More importantly, however: it may be counterproductive.
Combined, an increase in GST and a reduction in the already meagre unemployment benefits (considering that workforce underutilisation runs at about 13-14%), could impact aggregate demand, at a moment when the RBA has indicated its intention to continue its policy of rising interest rates, while the global economic outlook remains uncertain.
But, then again, as we all know, we are already out of the woods and now we can forget about demand management and concentrate instead in supply management:
"The BCA endorses the importance of pressing ahead with microeconomic reforms needed to enhance the SUPPLY SIDE of the economy". [10]
REFERENCES:
[1] Our Members
http://www.bca.com.au/Content/100830.aspx
[2] News Releases. Recovery Road Map Requires Balance, Commitment and Leadership. 14 February 2010.
http://www.bca.com.au/Content/101652.aspx
[3] Balancing Act: Fiscal and Policy Priorities to Support Growth – BCA Budget Submission 2010–11. p. 3.
http://www.bca.com.au/DisplayFile.aspx?FileID=618
[4] To the chartalist readers: as I'm trying to merely report what is there in black and white, I'll abstain to go into the subject of whether governments issuing fiat money need to cover their spending or not.
[5] Balancing... p. 5.
[6] News Releases...
[7] A guide to Australian Government Payments. 1 January - 19 March 2010. p. 22.
http://www.centrelink.gov.au/internet/internet.nsf/filestores/co029_1001/$file/co029_1001en.pdf
[8] Opposition will sell off Medibank. SMH, 21/02/2010.
http://news.smh.com.au/breaking-news-national/opposition-will-sell-off-medibank-20100221-on2m.html
[9] Balancing... p. 4
[10] Balancing... p. 4
As the Australian and global economies are already out of the woods, as we all know, it's time to resume growth.
This is the Business Council of Australia (BCA, "CEOs of 100 of Australia's top companies" [1]) uninterested advice:
"The federal government has committed itself to fiscal discipline and a high-productivity future. The Budget must include a plan to reduce the level of government involvement in the economy. It must shift the focus of revenue and spending to support business growth, job creation and workforce participation." My emphasis [2].
The reader might remember the Rudd government has vaguely stated its intention to keep federal budget bound to 2% real increases. Well, this is the commitment alluded, and the BCA is asking for a change in the way government money is raised and spent, to flesh out the Rudd government commitment.
What kind of changes is the BCA talking about?
"The BCA endorses the government's strategy to return the budget to surplus via expenditure constraint and savings rather than higher taxes". My emphasis [2].
Now, the Federal government is yet to reveal the detailed contents of the Henry Tax Review report, which not surprisingly, deals with taxes. Extra-officially a proposal to reduce income tax has leaked to the media. The shortfall in revenue, according to what has transpired, would be covered by a tax on natural resources rent (a.k.a. a tax on mining). With the statement above, I'm sure the BCA doesn't mean they want this "tax on mining" to be scrapped.
However, the BCA has made clear what taxes should be reduced, and what should increase:
"The essence of the BCA's position is that tax reforms arising from the Henry review should reduce the reliance on corporate income tax (and capital income taxes more broadly), increase the reliance on the least distortive taxes (notably consumption and property taxes) and not increase taxes on labour income". My emphasis [3].
Among those "least distortive taxes" is the GST.
So, if the Budget is (A) to be on surplus [4], but (B) new or increased corporate taxes are not desired, this suggests that government spending must also be cut, not simply "constrained" as stated above (unless the idea were to plug the deficit just with an increased GST).
If you've followed this far, you might be asking: "Okay, then, to cut government spending where?"
Well, the BCA suggests several places:
1. "Progressively increase the qualifying age for the age pension to 67 years was a step in the right direction - more difficult decisions of a structural nature like this will be required". Although the BCA does not specify a more appropriate retirement age, it does state that "as a purely illustrative exercise, it is estimated that the traditional retirement age of 65 years would need to increase to 73 years by 2049 in order to ensure that the age dependency ratio at that time is equal to its current proportion of 5 people of working age for every 1 retired". My emphasis [5].
2. "To meet its expenditure commitments, the government should consider ways to tighten eligibility and apply means testing to some of its larger payment items (…)".
3. "(…) And subject unspent stimulus funding to a re-assessment against other fiscal priorities and Australia's future needs".
4. "In this context, funding in a mixed public and private system represents a key lever for shaping and directing the health system". My emphasis in all items [6].
The first item requires no further comment, as it is self-explanatory,
In regards to the second item, as human memory is a risky thing, I will remind the reader that last year, as part of its stimulus package, the federal government relaxed the eligibility criteria for unemployment benefits (Newstart Allowance), without increasing the fortnightly amount paid.
This way, an unemployed homeowner couple with combined assets exceeding $11,000 and up to $252,500, is able to claim up to $411.50 each partner per fortnight. But in this case, as the asset amount exceeds $11,000, the payments may be delayed. And payments are reduced by at least $0.50 by each dollar income the couple might have in excess of $62 per fortnight (say, interests on savings) [7].
The third item is also quite self-explanatory, but I will make a little comment: the idea is to cancel works for which the federal government has already allocated funds, but whose execution has not started.
The fourth item is by far the vaguest. Regardless, I am sure it has nothing to do with the sudden Opposition intention to privatize Medibank Private, should they win the next federal elections. [8]
Although the document under analysis is a Budget Submission, and thus should deal on fiscal policy issues, the BCA goes further with items unrelated to federal budgets, such as "the need for ongoing structural reforms to our system of workplace relations and enhancements to our education and training base". [9]
As before, I will draw the reader's attention to the extraordinary coincidence between this statement and Mr. Abbott's intention to restore the system of individual work contracts.
Concluding remarks
The BCA Submission is interesting, for what it contains and for what it leaves out.
In spite of its recommendations against new taxes, it leaves out the ETS, called by Mr. Abbott the "new great tax on everything". Does this mean the BCA considers the ETS is definitely dead? Or they don't mind this specific "new great tax on everything"?
To increase the retirement age, as suggested, unless made effective immediately, will do nothing to reduce spending in the near future, which is the scope of a federal budget. But it comes at a price that no government would be happy to pay in an election year.
How much savings can tighter eligibility criteria for Newstart Allowance bring? Hard to say, but it shouldn't be much: if the employment situation is improving as much as ABS statistics say, unemployment benefits should be falling already, automatically.
The BCA doesn't specify what kind of workplace reform is required, unless one were to assume that Mr. Abbott's words reflect the institutional opinion of the BCA. Still, given that the Australian economy has performed as magnificently as we had been led to believe, there seems to be little point in reforms: it ain't broken, so don't fix it.
Interestingly, the BCA has not made any pronouncement about public sectors lay offs (an obvious way of saving), as the opposition, in the person of Mr. Joyce, has.
Similarly, other than it needs to be cut, little detail is given about the BCA position on health spending, so it's risky to comment on this. Does the opposition Medibank proposal fit in with the BCA Submission?
Given that new taxes or increased corporate, capital and personal income taxes are off limits, I suppose this leaves the Federal government with few options, other than to raise the GST rate.
As with cutting down Federal spending in social security in general, this would be risky in an election year. More importantly, however: it may be counterproductive.
Combined, an increase in GST and a reduction in the already meagre unemployment benefits (considering that workforce underutilisation runs at about 13-14%), could impact aggregate demand, at a moment when the RBA has indicated its intention to continue its policy of rising interest rates, while the global economic outlook remains uncertain.
But, then again, as we all know, we are already out of the woods and now we can forget about demand management and concentrate instead in supply management:
"The BCA endorses the importance of pressing ahead with microeconomic reforms needed to enhance the SUPPLY SIDE of the economy". [10]
REFERENCES:
[1] Our Members
http://www.bca.com.au/Content/100830.aspx
[2] News Releases. Recovery Road Map Requires Balance, Commitment and Leadership. 14 February 2010.
http://www.bca.com.au/Content/101652.aspx
[3] Balancing Act: Fiscal and Policy Priorities to Support Growth – BCA Budget Submission 2010–11. p. 3.
http://www.bca.com.au/DisplayFile.aspx?FileID=618
[4] To the chartalist readers: as I'm trying to merely report what is there in black and white, I'll abstain to go into the subject of whether governments issuing fiat money need to cover their spending or not.
[5] Balancing... p. 5.
[6] News Releases...
[7] A guide to Australian Government Payments. 1 January - 19 March 2010. p. 22.
http://www.centrelink.gov.au/internet/internet.nsf/filestores/co029_1001/$file/co029_1001en.pdf
[8] Opposition will sell off Medibank. SMH, 21/02/2010.
http://news.smh.com.au/breaking-news-national/opposition-will-sell-off-medibank-20100221-on2m.html
[9] Balancing... p. 4
[10] Balancing... p. 4
Subscribe to:
Posts (Atom)