Politics

By Michael Moore

IN reflecting on 2008 and looking forward to 2009 it is time for governments to take a lesson from Robin Hood!
The economic meltdown of 2008 has had a major impact across the community. In Australia, job prospects are narrowing, wages are set to stay at current levels and it is difficult to determine when the stock market will end its inexorable downward trend. 
For ordinary Australians, it is difficult to see things turning around in the next 12 months.  However, spare a thought for people in the developing world. Many of these people and their families live from hand to mouth – that is where the real impact of the economic blow-out will have the most devastating impact.
In Australia, the impact is really being felt by self-funded retirees who have to tighten their belts considerably after suffering devastating losses of up to half of their investments and consequently to their incomes.
We have had a decade of deaf ears to the outcry about the ludicrous payments to CEOs of banks, mining companies and big IT businesses.  In the US, the big motor companies are now apologising for their poor behaviour, their incompetence and their greed. Not many are offering to hand back any of the money! The reason they are grovelling is that they now want huge US Government hand-outs.
Robin Hood stole from the rich to give to the poor. Governments across the world are now taking from battlers to support the rich.
The poorly regulated US economic systems (particularly with their sub-prime mortgages) have plunged the world into crisis having already lined the pockets of the rich. 
When community funds from ordinary taxpayers are being used to bail out these huge companies with billion-dollar rescue packages, there is simply a transfer of money from ordinary people to the wealthy cowboys who were paid excessive packages for their irresponsible management. 
To the chagrin of ordinary taxpayers, the same people – who are now looking for taxpayer handouts – are also those who were no doubt the niftiest at minimising their own taxation contributions.
Attempts by outgoing US President George W Bush to defend poor economic regulation of his administration must make ordinary US citizens breathe a sigh of relief that the voters have opted for an alternative in Barack Obama. 
However, Congress and the Senate are still approving the big bail-out packages. At this stage they have little choice. The alternative is to face the prospect of plunging the country (and perhaps the world) into a depression.
In Australia, the Coalition in opposition are singing their own praises arguing that thanks to their good economic management the impact on Australia will be minimised by comparison to most of the developed world economies. 
There is one difference. The Rudd stimulus packages in Australia have at least been dipping into our hard-earned community funds to provide additional financial opportunities to those in most need.  Malcolm Turnbull has been suggesting that cuts in taxation would be a better way to provide economic stimulus. There are advantages in the suggestion, but tax cuts would take longer to have an impact would not be so well targeted at the poor and the extent of the impact on low-income earners would be difficult to determine.
Rudd’s seasonal bonus does have Robin Hood overtones. The trouble is that the money does not come from the rich, but from ordinary taxpaying citizens. 
As we head into 2009 it must be time for governments and economists to seriously consider how to implement a Robin Hood approach. Instead, it is likely that the wealthy will buy as the stock market hits its lowest levels and will enjoy the windfall gains as the cycle starts again.
Michael Moore is a former independent member of the ACT Legislative Assembly and minister for health.