The neoliberal trickle-down story is a myth. It never shows up. It fails because the wealthy put much of their wealth into unproductive asset speculation and luxuries for themselves, not into productive investment. This keeps the financial markets and housing prices high, but our economy has been hollowed out. We are left with being China’s quarry.

The right-wing neoliberal parties of Margaret Thatcher and John Howard set upon the industrial unions with a vengeance, so it is almost comical now to see the Morrison Government’s continuing obsession with the last feeble vestiges of union power. But Labor and Labour also undermined and defanged the unions, and allowed industries to wither and collapse with little help for displaced workers.

In place of real jobs, people are offered the gig economy, with no security and a likelihood their wages will be stolen as well. Yes, the nature of the economy has changed, but the employed still have a common interest against the owners of capital, as Adam Smith himself well understood in his day.

via The Keating and Blair consensus has failed