Antinuclear

G20 fetish for Growth will not bring better job outcomes

Will growth mean more jobs? Not necessarily The Drum By Anthony D’Costa 13 Nov 2014, We can expect to see the continuing fetishisation of economic growth at the G20 this weekend, but that’s not the magic potion when it comes to employment, writes Anthony D’Costa………

The G20 leaders are bent on raising the global economic growth rate to 2 per cent or more than current projections. The economic logic behind this mysterious number is an unspecified investment commitment and reforms that collectively would induce economic growth and get the world economy moving again.

The question is, will it get the economy moving again in terms of jobs? In fact, there is no explicit discussion by the G20 on the employment challenges that confront the world economy……..

The presumption is that growth means employment. That might have once been true, but it is less so these days because of globalisation. The adage “what’s good for General Motors is good for America” is not necessarily true anymore, since investment in China may not employ American workers, but would fatten shareholder earnings. Of course, Chinese workers could buy more American products, but witness the US trade balance with China – it has persistently been negative. And as the recent growth improvement suggests, growth does not ensure quality jobs.

The 20 largest economies do have global clout, but that influence comes in many shades, with different levels of economic standing. However, all of them suffer, albeit differently, from not having enough quality jobs……….

There is a lot riding on the G20, but the sole emphasis on growth and a loud silence on the jobs question sounds jarring……..

If the recent growth experience is any guide, inequality at home and globally has become pronounced. If growth is not the answer, why isn’t the G20 vocal on the jobs issue – and by extension – inequality?……..http://www.abc.net.au/news/2014-11-14/dcosta-g20-should-focus-on-jobs-not-growth/5891308

November 15, 2014 - Posted by Christina Macpherson | General News