1

The Rudd analysisThe Rudd analysis The current global economic crisis can be The current global economic crisis can be

traced back to the advent of neoliberalism, traced back to the advent of neoliberalism, some three decades agosome three decades ago

Neoliberalism pursued an agenda that Neoliberalism pursued an agenda that essentially comprised of deregulation and essentially comprised of deregulation and privatisationprivatisation

The private sector delivers goods and services The private sector delivers goods and services at a far more efficient and competitive rate to at a far more efficient and competitive rate to consumersconsumers

The objective was to create a wealthier and The objective was to create a wealthier and happier State, courtesy of the ‘trickle-down happier State, courtesy of the ‘trickle-down theory’theory’

2

The implications of neoliberalismThe implications of neoliberalism The State has become more of a facilitator and The State has become more of a facilitator and

less of an interventionist (Saunders & Eardley, less of an interventionist (Saunders & Eardley, 2008)2008)

The trickle-down theory has merely served to The trickle-down theory has merely served to concentrate wealth into the hands of a few concentrate wealth into the hands of a few privileged individuals privileged individuals

The US gini coefficient peaked in 2006 at 47.0, The US gini coefficient peaked in 2006 at 47.0, the highest index ever recorded thus far, the highest index ever recorded thus far, surpassing the 1929 level of 45.0surpassing the 1929 level of 45.0

(1945-2009) - the largest recorded levels of US (1945-2009) - the largest recorded levels of US debt/GDP ratio occurred during the era of debt/GDP ratio occurred during the era of neoliberalismneoliberalism

3

AustralianAustralian economyeconomy post 1991 post 1991 recessionrecession

Australia’s free-market economy experienced Australia’s free-market economy experienced unprecedented levels of national prosperity unprecedented levels of national prosperity between 1991 and 2008 on the back of a between 1991 and 2008 on the back of a resources boom (Andrews & Flynn 2008; resources boom (Andrews & Flynn 2008; Middendorp 2008; Nader 2008)Middendorp 2008; Nader 2008)

““Working families have never been better off” – Working families have never been better off” – John Winston Howard, 2007John Winston Howard, 2007

4

HomelessnessHomelessness

Homelessness affects 105,000 Australians each Homelessness affects 105,000 Australians each night of the week (Lunn 2008)night of the week (Lunn 2008)

16,000 experience absolute homelessness 16,000 experience absolute homelessness (Lunn 2008)(Lunn 2008)

84,000 homeless people are affected by some 84,000 homeless people are affected by some form of mental illness (lunn 2008)form of mental illness (lunn 2008)

More than half (84,000) have a co-existing More than half (84,000) have a co-existing addiction (Ellingsen 2004;addiction (Ellingsen 2004; Horin 2007)Horin 2007)

5

Subsidising the private housing sectorSubsidising the private housing sector

During the Howard Government’s 12-year reign, During the Howard Government’s 12-year reign, funding for public housing was reduced by funding for public housing was reduced by approximately AUD3.5b (~0.27% GDP) approximately AUD3.5b (~0.27% GDP)

In contrast, AUD2b (~0.15% GDP) was injected In contrast, AUD2b (~0.15% GDP) was injected into the private rental market during the final into the private rental market during the final year of the Howard Government (Perusco 2008)year of the Howard Government (Perusco 2008)

6

Obama/Rudd response to the Obama/Rudd response to the public housing crisispublic housing crisis

The approach taken by Barack Obama and The approach taken by Barack Obama and Kevin Rudd is very similar, based on Keynesian Kevin Rudd is very similar, based on Keynesian economic principleseconomic principles

Barack Obama is allocating USD12.7b, Barack Obama is allocating USD12.7b, beginning in 2009beginning in 2009

Kevin Rudd is allocating AUD1.2b over four Kevin Rudd is allocating AUD1.2b over four years, beginning in 2009years, beginning in 2009

The Rudd stimulus package will allegedly The Rudd stimulus package will allegedly stimulate the Australian economy by stimulate the Australian economy by generating up to 133,000 jobsgenerating up to 133,000 jobs

7

Social democracySocial democracy

Market based economies have relied on the Market based economies have relied on the State to provide mass public infrastructure and State to provide mass public infrastructure and maintain law and ordermaintain law and order

The State has played a protectionist roleThe State has played a protectionist role The State has played a significant role in The State has played a significant role in

collecting taxes, providing welfare, providing collecting taxes, providing welfare, providing goods and services and regulating against the goods and services and regulating against the excesses of capitalismexcesses of capitalism

The State offers protection to consumers and The State offers protection to consumers and the environment by regulating the marketthe environment by regulating the market

8

Scandinavian approach to public Scandinavian approach to public housinghousing

Markets left to their own devices cannot be Markets left to their own devices cannot be trustedtrusted

Sweden has a social rented sector of 15-18% Sweden has a social rented sector of 15-18% and a homeless rate of 0.2% (Communities and and a homeless rate of 0.2% (Communities and Local Government 2007; Socialstyrelsen 2005)Local Government 2007; Socialstyrelsen 2005)

Australia has a social rented sector of 5-6% and Australia has a social rented sector of 5-6% and a homeless rate of 0.5% (Communities and a homeless rate of 0.5% (Communities and Local Government 2007; Socialstyrelsen 2005)Local Government 2007; Socialstyrelsen 2005)

Neoliberalism unequivocally represents the Neoliberalism unequivocally represents the engine room of extreme inequality in societyengine room of extreme inequality in society

9

HopeHope Achieving a greater level of social inclusion by Achieving a greater level of social inclusion by

reducing homelessnessreducing homelessness

The extent of a nation’s poverty tells us a good The extent of a nation’s poverty tells us a good deal about the nation and the abject conditions deal about the nation and the abject conditions that it’s prepared to toleratethat it’s prepared to tolerate

A society’s integrity is not judged by its A society’s integrity is not judged by its economic success, but by how it treats and economic success, but by how it treats and supports its most vulnerablesupports its most vulnerable

Housing is unequivocally a basic human right, Housing is unequivocally a basic human right, as per the UN Charter of Human Rightsas per the UN Charter of Human Rights