Wednesday , February 19 2020
Home / John Quiggin
John Quiggin

John Quiggin

He is an Australian economist, a Professor and an Australian Research Council Laureate Fellow at the University of Queensland, and a former member of the Board of the Climate Change Authority of the Australian Government.

Articles by John Quiggin

Our political class: the National Party

2 days ago

There are lots of things going wrong with Australian government, resulting, for example in its failure to deal with climate change. One of these things is the membership of our political class. The problems are widespread but I’ll start with the National Party. The name itself is a problem, dating back to the brief delusion, encapsulated by the Joh for Canberra campaign in the 1980s, that the Country Party (as it then was) could become the dominant rightwing party. To the extent this idea had any substance, it was based on the success of various Country Party spivs in securing seats in the Gold and Sunshine Coasts.

What we now have is the process in reverse – a string of upper class spivs posing as salt of the earth bushies, and being elected to rural seats. To take just a few

Read More »

Monday Message Board

3 days ago

Back again with another Monday Message Board.

Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please. If you would like to receive my (hopefully) regular email news, please sign up using the following link

http://eepurl.com/dAv6sX You can also follow me on Twitter @JohnQuiggin, at my Facebook public page   and at my Economics in Two Lessons page
Like this:Like Loading…

Read More »

Baristas and coal miners: apples and oranges

6 days ago

ABC Fact Check has a piece looking at a claim by the Young Greens that “making lattes provides more Australian jobs than the entire coal industry.” The detail of the tweet included the claim that there were 86000 barista jobs compared to 52000 in the coal mining industry

The Fact Check Unit observed that the quoted firgure is for total employment in the cafe industry, not just barista. By comparing an estimate of the number of baristas to total employment in coal mining, the Fact Check Unit concludes that the claim is Incorrect.

There is an apples and oranges problem here. There are two reasonable ways to do this comparison

(a) Treat “barista” as shorthand for “someone who works in a coffee shop”. Then compare employment in the coffee shop sector, including “permanent,

Read More »

Post materialism liberal enviro elitism

6 days ago

That’s how a Labor partisan on Twitter described my criticism in Independent Australia of Labor’s strategy of avoiding any policy difference with the Morrison government, and shutting down all discussion of the climate catastrophe until they get around to announcing a policy for the 2022 election. The one exception I noted (and the one that incited this response) was support for the coal industry. As I noted

Rather than offer a climate policy in response to the catastrophic bushfires of the last summer, Labor took the view that ‘the immediate focus should be on firefighters battling the blazes, people at risk and those grieving lost loved ones’. While scoring points on scandals like the sports rorts and cynically exploiting of divisions within the Government, Labor has put

Read More »

Review of Economics in Two Lessons

8 days ago

Here’s a review of Economics in Two Lessons, by Nikki Dumbrell in the Australian Journal of Agricultural and Resource Economics. It’s the first in an academic journal, and captures all the main points nicely.

Free market economics (or ‘One Lesson Economics’, Hazlitt 1946) refers to the idea that markets, left alone with very minimal intervention, will achieve equilibrium and as such allocate resources to their most valued use. This idea is persistent. Indeed, famous schools of economic thought (and individuals’ careers) are built on this idea. Economics in Two Lessons, by Professor John Quiggin (Distinguished Fellow of the Australasian Agricultural and Resource Economics Society) recognises the importance of One Lesson economics but challenges the completeness of this way of

Read More »

Climate crisis campaign

8 days ago

I’ll be speaking at the launch of the NTEU Climate Crisis campaign at Queensland College of Art Southbank tomorrow (Wednesday 12 Feb) .
Share this:Like this:Like Loading…

Read More »

The best books on Learning Economics

9 days ago

Following the release of Economics in Two Lessons, Sophie Roell of Five Books invited me to do an interview. The Five Books format is that the interviewee (usually an author) nominates the best five books (not including their own) on a given topic. My topic was the Best Books on Learning Economics, with the explanation

these are not textbooks for students studying economics. They’re books for the intelligent, general reader to learn what economics is about—and what the important issues are—without doing any actual [technical] economics.

I’ve picked books by Milton Friedman, Paul Ormerod, Tony Atkinson, Thomas Piketty, and Abhijit Banerjee & Esther Duflo. The interview is here.
Share this:Like this:Like Loading…

Read More »

Monday Message Board

10 days ago

Back again with another Monday Message Board.

Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please. If you would like to receive my (hopefully) regular email news, please sign up using the following link

http://eepurl.com/dAv6sX You can also follow me on Twitter @JohnQuiggin, at my Facebook public page   and at my Economics in Two Lessons page
Like this:Like Loading…

Read More »

The worst case is happening

13 days ago

A couple of years ago, I published an article on why “extremely unlikely” climate events matter. The central point was that climate outcomes with a probability of 5 per cent or less (“extremely unlikely” in IPCC terminology) were still much more likely than risks we take seriously in our daily life, like dying in a car crash). As an illustration, at the time the piece was written, it seemed less than 5 per cent probable that, within two years, many countries in the world (including Australia) would see catastrophic fires on the scale of those that have actually happened.

I made this point in an interview for an ABC story on economists’ views of the likely costs of 3 to 4 degrees of climate change. Most of those interviewed agreed with me that the costs were likely to be much

Read More »

The statistical significance of focus groups

16 days ago

I’ve generally taken a pretty dim view of focus groups, which seem to be used mostly to detect and amplify unthinking prejudices. But, I have to admit, that probably is due at least in part to the fact that my prejudices aren’t very close to those of the median focus group participant. So, it wasn’t until I saw focus group results matching my own thoughts that I paid any attention to the question of whether the results actually meant anything.

According to the SMH report, participants in two Ipsos focus groups almost uniformly saw Morrison’s response to the bushfires as “pathetic” and “lacking empathy”. In each case, eight of nine respondents gave such negative views. Ipsos also concluded there was “little confidence” Labor leader Anthony Albanese would have provided better

Read More »

Sandpit

17 days ago

A new sandpit for long side discussions, conspiracy theories, idees fixes and so on.
Like this:Like Loading…

Read More »

Monday Message Board

17 days ago

Back again with another Monday Message Board.

Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please. If you would like to receive my (hopefully) regular email news, please sign up using the following link

http://eepurl.com/dAv6sX You can also follow me on Twitter @JohnQuiggin, at my Facebook public page   and at my Economics in Two Lessons page
Like this:Like Loading…

Read More »

More news from the apocalypse (crosspost from Crooked Timber)

20 days ago

I’m still writing furiously (in both senses of the word) about climate change, the fire disaster in Australia and the responsibility the entire political right bears for this catastrophe, along with those of the centre and left who have shirked the struggle. Australian writer Richard Flanagan, in the New York Times, has compared our leaders to famous traitors like Benedict Arnold, Vidkun Quisling and Mir Jafar, and that’s a pretty good summary of how large numbers of Australians feel.

Over the fold, links to some of my latest commentary

An Open Letter on Australian Bushfires and Climate: Urgent Need for Deep Cuts in Carbon Emissions from 80 current and former Australian Laureate Fellows (our most prestigious research award, across natural and social sciences and humanities).

Read More »

Libertarians Can’t Save the Planet

23 days ago

As promised, my article on climate change and the death of libertarianism/propertarianism, in Jacobin.

Conclusion

Global warming is the ultimate refutation of Lockean propertarianism. No one can pump greenhouse gases into the atmosphere while leaving “enough and as good” for everyone else. It has taken thirty years, but this undeniable fact has finally killed the propertarian movement in the United States.

Share this:Like this:Like Loading…

Read More »

Australia Day

24 days ago

There have been Australia Days more loaded with fear and foreboding than yesterday’s (in 1942, for example), but not many. Richard Flanagan’s jeremiad in the New York Times might be overstated, but it’s a lot closer to the mark than our appalling Prime Minister’s suggestion that we should take the time to celebrate our greatness as a nation.
Share this:Like this:Like Loading…

Read More »

Economics isn’t as highfalutin’ as the jargon makes it sound

25 days ago

Ross Gittins has a very nice piece in the SMH today, with some kind words about Economics in Two Lessons which he recommends as “the best book to introduce you to economics”. Ross says that the crucial concepts in economics are: Opportunity cost (of course!), the Invisible Hand (roughly, my Lesson One), imperfect competition, market failure and externalities (the microeconomic component of my Lesson Two).

His final para gives the lie to those who imagine economists oppose action to save the global enviroment

As for external costs (“negative externalities”), Quiggin notes that the leading British economist Lord Nicholas Stern has described climate change as “the biggest market failure in history”. So now you know why so many of the nation’s economists are appalled by

Read More »

The ash falls on the just and unjust alike

27 days ago

Looking at our elected leaders, it’s hard to avoid the feeling that we, as Australians, deserve the cataclysms that have been visited upon us in the last few months. And reading the international press coverage of the disaster, this is a theme that constantly recurs.

Yet its less than a year since 49 per cent of us voted for a policy program far better than that of the government that scraped in or the shell-shocked opposition that proposes to wait until 2022 before doing anything.

If it hadn’t been for any of half a dozen largely random factors (Shorten’s personal unpopularity, Clive Palmer’s advertising blitz, Labor’s clunky “big end of town”rhetoric and so on, we might have had the opposite result just as the polls predicted

Of course, a Shorten government wouldn’t have

Read More »

Monday Message Board

January 19, 2020

Back again with another Monday Message Board.

Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please. If you would like to receive my (hopefully) regular email news, please sign up using the following link

http://eepurl.com/dAv6sX You can also follow me on Twitter @JohnQuiggin, at my Facebook public page   and at my Economics in Two Lessons page
Like this:Like Loading…

Read More »

Nuclear update: Gen III dies an early death

January 19, 2020

One of the more tenacious beliefs on the political right is that their support for nuclear power demonstrates superior rationality and openness to evidence. But the evidence is that, no matter what the structure of energy markets no one is willing to choose (new) nuclear power over any of the alternatives: gas, renewables and coal. That’s bad in the sense that the true costs of new and existing coal far exceed those of even new nuclear. But where those costs are factored in to decisions, it’s renewables (plus storage) that benefit.

Let’s look at the evidence. The World Nuclear Association currently lists “about 50” plants under construction, a number that’s been declining over time. A closer look reveals 47 plants, of which 23 are due to be completed this year or next (most are

Read More »

Climate change and the strange death of libertarianism

January 18, 2020

It wasn’t that long ago that everyone was talking about the “libertarian moment” in the US. Now, libertarianism/propertarianism is pretty much dead. The support base, advocacy groups and so on have gone full Trumpists, while the intellectual energy has shifted to “liberaltarianism” or, a more recent variant, Tyler Cowen’s conversion to “state capacity libertarianism“.

Most of those departing to the left have mentioned the failure of libertarianism to handle climate change. It was critical for two reasons. First, any serious propertarian response would have required support ofr the creation of new property rights (emissions permits) and the restriction of existing ones (burning carbon). That would imply an acknowledgement that property rights are natural relations between people

Read More »

Blackrock and the AAA rating

January 16, 2020

Blackrock, the world’s largest asset manager has announced some big steps towards divestment from thermal coal. As I observe in this article in The Conversation, Blackrock’s shift marks the point at which divestment has become the norm for financial institutions, and continued involvement with coal a choice that must be justified in the face of the evidence.

As has already happened with Adani’s Carmichael project, thermal coal miners and power station developers will soon find it impossible to get external finance except from government and government-backed sources, such as China’s Belt and Road initiative. The Australian government is already pushing in this direction.

That brings us to the next step in divestment: government bonds. The Swedish central bank has already

Read More »

Economic estimates don’t account for tragic bushfire toll

January 15, 2020

That;s the headline for my latest piece for Independent Australia Obviously, costs like ecosystem destruction and the deaths of millions of native animals can’t easily be put into the framework of the National Accounts. But, even if we stick to the National Accounts, Gross Domestic Product is a terrible measure of economic welfare. As I always say, there are three reasons for that; it’s Gross, it’s Domestic and it’s a Product.
Share this:Like this:Like Loading…

Read More »

Sandpit

January 12, 2020

A new sandpit for long side discussions, conspiracy theories, idees fixes and so on.
Like this:Like Loading…

Read More »

Monday Message Board

January 12, 2020

Back again with another Monday Message Board.

Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please. If you would like to receive my (hopefully) regular email news, please sign up using the following link

http://eepurl.com/dAv6sX You can also follow me on Twitter @JohnQuiggin, at my Facebook public page   and at my Economics in Two Lessons page
Like this:Like Loading…

Read More »

Consumed by fire (crosspost from Crooked Timber)

January 12, 2020

(Most of this will be familiar to regular readers of this blog. But it seems simplest to crosspost the whole thing, rather than do a separate version).

It’s been hard to think straight with the fires that have burned through most of Australia for months. Brisbane was among the first places affected, with the loss of the historic Binna Burra lodge, on the edge of a rainforest, a place where no one expected a catastrophic fire. But, as it turned out, we got off easy compared to the rest of the country. Heavy rain in early December helped to put out the fires in Queensland, and we can expect the delayed arrival of the monsoon in the near future. By contrast, southern Australia normally has hot, dry summers and this has been the hottest driest year ever. The increased likelihood of

Read More »

On CNN

January 12, 2020

If all goes to plan, I will be on CNN International Newsroom at 3pm Brisbane time talking about economic impact of #AustralianFires My preliminary estimate of costs, at least $100 billion.
Share this:Like this:Like Loading…

Read More »

Australia is promising $2 billion for the fires. I estimate recovery will cost $100 billion

January 10, 2020

That’s the self-explanatory headline for a piece I wrote for CNN Business in the US. Major contributors to this number, beyond the direct loss of property include

damage to the tourist industry (I estimate up to $20 billion)health effects, including 1000 or more premature deaths from smoke (up to $10 billion)need for massive expenditure to deal with future disastersecosystem destruction and wildlife deaths (impossible to value, but catastrophic) Share this:Like this:Like Loading…

Read More »

Slow Burn

January 9, 2020

That’s the headline for my latest piece in Inside Story, with the summary

Hundreds more deaths will result from the particulates created by Australia’s current crop of bushfires

At the time of writing, at least fourteen people have been killed by this season’s bushfires. And with most of January and all of February still to come, the number is sure to rise. But these dramatic deaths are far outweighed by the hundreds, perhaps thousands, of deaths that will ultimately result from the toxic smoke blanketing Australian cities.

The most dangerous component of bushfire smoke are tiny particulates, no more than 2.5 micrometres in diameter, known as PM2.5. Over the past twenty years, studies have shown that high levels of PM2.5 have contributed to millions of premature deaths

Read More »

Old men behaving badly (3rd repost)

January 6, 2020

I first posted this in 2011, reposted it in 2014 and again in 2019. Sadly, nothing changes, except that the old men keep getting stupider and behaving worse.
John Howard’s endorsement of Ian Plimer’s children’s version of his absurd anti-science tract Heaven and Earth has at least one good feature. I can now cut the number of prominent Australian conservatives for whom I have any intellectual respect down from two to one.[1] Howard’s acceptance of anti-science nonsense shows that, for all his ability as a politician, he is, in the end, just another tribalist incapable of thinking for himself. [2]
Although not all the tribal leaders are old men, an old, high-status man like Howard is certainly emblematic of Australian delusionism . Like a lot of old, high status men, he stopped

Read More »