Mad Albo is annihilating Australian workers

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Who needs the LNP when capital has the ALP!

The Liberals are only so effective because they come with the nasty social conservatism of the Nats. This limits their shelf life as a government.

Whereas the ALP comes with the LNP policies plus a woke corporatised culture for a seamless fit that disguises the underlying class war.

And what a war it is under Mad Albo. The most vicious attack on Australian workers in living memory, rebadged as soft and progressive.

Gaslighting par excellence!

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The war on workers is being conducted on five fronts. The first is in the labour market which is being swamped by cheap Third World workers, most obviously Indian. This is already crushing wages with growth falling away fast as jobless queues grow.

There is nothing that regulation can do to stop it. Not at the level of Awards. Not at the microeconomic level. Migrants (and Aussies) will rort migrants. And migrants themselves will volunteer for rorting for the visa.

The same goes for marginal efforts to limit modern slavery via reforms to Labour Hire and unionisation etc. This can only work in a few large corporates. But they will just outsource more work to middlemen and the rort will continue.

Thus, the enormous cut-price labour supply shock will smash wages back to the lowflation period in due course.

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The second dimension of Mad Albo’s war on workers is the roof over their heads. The cost of renting or buying property is already skyrocketing as COVID supply shortages collide with Mad Albo’s immigration deluge.

Workers in major cities are now being forced to either shack up together, move to the very margins to find a dwelling at all, or into tents in the nearest park.

Needless to say, all three are a material lowering of living standards.

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The third front in Mad Albo’s war on workers is the crush-loading of public services. There is vertical fiscal imbalance that enables Mad Albo to collect 80% of the nation’s tax revenue while shifting most of the costs to the states for the increased public services demand of a larger population.

But state budgets are shot post-COVID so they are cutting infrastructure investment hand over fist. Services delivering across transport, health, law and order, and education are all going to erode even faster than under the LNP.

All public functions are more important to less fortunate households.

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The fourth front in Mad Albo’s war on workers is any and all goods related to energy. No fewer than five federal MPs are being daily humiliated by an east coast gas cartel that is selling its fuel for twice Mad Albo’s price cap.

Wholesale electricity prices are now up 400% from pre-Ukraine War days. This is a doubling of utility bills.

For workers, these bills represent a much higher percentage of disposable income than the well-off.

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As well, these energy prices spill over directly into consumer staples inflation. Like food. Again, a much higher proportion of income among poorer households.

Yet Mad Albo just watches on as the energy cartel breaks the law, for fear of upsetting capital.

The fifth and final front in Mad Albo’s war on workers is that the above crushing of workers is softening them up for an artificial intelligence jobs shock that is coming at lightning speed.

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Indeed, Mad Albo is setting a vice to squeeze Aussie workers with cut-price foreign labour on one side and multifaceted robots on the other.

This is more pressure on wages and stimultaneously higher unemployment. This guarantees that the productivity benefits of higher income owing to AI will accrue directly to capital.

To summarise, Mad Albo is crushing wages, lifting unemployment and cutting public services delivery on one hand, while skyrocketing household costs on the other, especially for the staples that comprise the larger portion of lower-income cohorts.

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Is it any wonder that Aussie workers are going backwards at the fastest pace that anybody can remember?

Mad Albo is annihilating Australian workers.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.