Full Employment of Labour

Unemployment comprises of the people who aren't working but are actively seeking employment.

Unemployment rate = Unemployed People/Total Labour Force X 100%

Labour Force = Employed + Unemployed (Age 15+)

Labour Force Participation Rate = Labor Force/Civilian Population Over 15 X 100%

Types of Unemployment-

General or Cyclical Unemployment

-Depends on level of economic activity

Frictional Unemployment
-people between jobs

Seasonal Unemployment
-temporarily jobless between seasons
-government not interesting in correcting cause its temporary

Structural Unemployment
-Firms downsizing/restructuring

Hardcore Unemployment
-ownself sohai

Hidden Unemployment
-Discouraged from working, but would wanna work but not seeking job. (Not counted in labour force)

Underemployed
-Want full-time but only get part-time

Natural Rate of Unemployment = Frictional + Structural + Hard Core
As all these are unavoidable

Acceptable Rate = 5%

Price Stability

-occurs with low inflation
-2%-3% Target of inflation

Indicators:
Consumer Price Index (CPI) most accurate


CPI = (Total dollar expenditure on market basket in current year)/(Total dollar expenditure on market basket in base year) x 100

Percentage change in prices = ( CPI later year – CPI earlier year)/
(CPI earlier year) ] X 100

Uses of CPI
To measure changes in the rate of inflation or deflation.
In the adjustment of wages.
To assess the effectiveness of government economic policy in the control of inflation.
To measure “real” changes in economic growth.

Limitations of CPI
Includes only small sample of G&S so its not accurate
Not accurate as everyone buys diff stuff
Published 6-8 weeks after calculated, inflation rate late

Causes of Inflation
Imported Inflation - importing their inflation increasing our price domestic price increased also
Demand-pull Inflation - consumers demand more, so pull price up
Cost-push Inflation - production prices increase, wages/raw materials, taxes

Worsens EB and causes Unemployment

External Balance - Part B

FOREX - foreign exchange

When the Australian dollar depreciates:
International competitiveness improves.
Better international trade competitiveness improves Australia’s trade balance.
Higher economic growth and employment.
Fall in Australian investment overseas.
Rise in foreign investment into Australia.
Higher rate of inflation.
Increased net foreign debt and worsening CAD.
Rise in domestic interest rates.

When the Australian dollar appreciates:
Australia’s level of foreign debt falls.
The rate of domestic inflation falls.
Loss of international competitiveness.
Decrease in foreign direct and portfolio investment into Australia.
Rise in Australian investment overseas.
Levels of employment, income, and economic growth fall.

Causes of imbalance:
High inflation and declining international competitiveness
trade deficit
The lowering of protective barriers to trade (tariffs and quotas)
saving – investment gap.
The income transfers
deteriorating state of the global economy.
depreciation of the Australian dollar
appreciation of the Australian dollar
drought
rapid economic growth

Effects of imbalance:
Foreign debt
Reduced credit rating
Loss of investor confidence
Putting country at Risk of not being able to pay
Policy Responses (government policies)

External Balance

External Balance
-being able to meet all its financial obligations to other countries
-affected by current and capital flows

Current Flows:

Export and imports
-borrowing occurs to pay debt
-if export does not > import, trade balance deficit

Income transfer overseas
-interest payments on loans and dividend payments to owners of shares in domestic firms & other payment to foreigners (outflow of money)
-if income flow in > outflow, income transfer surplus archieved

3 Current Accounts:
Good and Services
(Export and import)

Income Transfer
(International payment and receipt)

Current Transfer
(giving without returns)

Current account deficit (CAD)
-import > export
-high level of capital inflow into Australia

The Australian Capital and Financial Account:

-total receipt > total payment, positive/surplus

-2 types of foreign investment

~Direct Investment
-Ownership more then 10%
-involves establishment and continued operation of firms and businesses within Australia
~Portfolio investment
-less then 10% firm purchased
-commercial bonds, foreign government securities and debentures
-depends on Aus's level of interest rates, share prices and level of business confidence

-income repatriation (send money back overseas)

-foreign ownership (country lose sovereignty over resources, owns more then 50% of company)

Indicators of External Balance
-Current account deficit as percentage of GDP (3% of CAD as a percentage of GDP)
-Net foreign debt as a percentage of GDP (40%-50%)
-Exchange rate (outflow > inflow, $ exchange fall)

Topic 4 : Macroeconomics Objectives

Economic Growth
-sustained increase in total output of goods and services
-occurs when there is increased total value of goods and services produced compared to previous years
-rate of increase of real GDP
-PPF shift outwards when it occurs

GDP-
Consumption, Investment, Government Spending, Net Exports

Benefits of economic growth:
–Higher income per capita and improved standard of living
–Creation of employment
–Less absolute poverty
–Higher levels of investment
–New technology
–External balance
–Greater tax revenue
–Higher environmental standards
–Leisure time

Costs of Economic Growth:
-Environmental degradation
-Structural unemployment
-Effects of inflation
-External balance and foreign debt
-Inequality of income worsens
-Materialism and consumerism
-Social costs

ICC

International covenant on Civil and Political Rights (ICCPR)
-adopted by General Assembly in 1966
-came into force in 1976
-Article 17 directly implemented into statute law as Human Rights(Sexual Conduct) Act 1994 allowing consenting adults freedom of sex in private

Convention on the Elimination on all forms of Racial Discrimination (CERD)
-Introduced in 1969
-Committee on Elimination of Racial Discrimination established to monitor compliance
-Commonwealth passed Racial Discrimination Act 1975 in compliance

Convention Against Torture (CAT)
-Came to force in 1987
-Aus has not passed domestic legislation
-The Crimes' (torture) Act 1988 was passed with references to acts of torture outside of Aus

Convention on the Elimination of all Forms of Discrimination Against Women (CEDAW)
-Forced in 1981
-Sex Discrimination Act 1984

Convention on Rights of the Child (CRC)
-Came to force in 1989
-Family Law Reform Act 1995 passed to comply regarding child rights on the breakdown of parents' relationship

International Covenant on Economic, Social and Cultural Rights
-Set up committee monitoring compliance
-No specific legislation

* * *

Aus has been criticized as little legislation has been passed by aus responds by saying it has very good human right records and common law together with parliamentary democracy adequately protects human rights identified in the treaties.

* * *

Arguments for use of HR Trearties:

• Provision of consistency between member-states
• Provision of leadership to other nations
• Setting of standards and provision regarding human rights
• Universally protect human rights as people move from country to country
• Mechanism to monitor compliance by member states and reports to committees allows issues of violations to be addressed

Criticisms

• Interferes with country's sovereignty
  
• Committees set up are not courts, appearing to lack impartiality and objectivity
• If commonwealth legislated for every HR under external affairs power they are encroaching on state's residual power
• Lack of consistency in criticisms
• Aus govern = directly accountable to people, limited in degree which they can respond to all provisions of treaty

***

International Court of Justice (ICJ)

-Settle disputes brought to it by member-states in accordance with international law
-Give advisory opinions on questions of law internationally

**Hostage taking, asylum seekers' rights, territorial sovereignty, maritime borders

International Criminal Court (ICC)

-Investigates serios international crimes
-Genocide (Killing/causing serious harm to group of people with intention of destroying them)
-War crimes (breachs of Geneva Convention 1949) that apply internationally and domestically.
--Crimes against humanity (widespread and systematic attacks against civilian population

* * *

What are the roles of international treaties in Australian law? (8 marks)





I. Improve human rights protection for all Australians, set a new benchmark for human right protection in Australia.



· International covenant on Civil and Political Rights (ICCPR).

· Convention on the Elimination of all forms of racial discrimination (CERD).

· Convention Against Torture (CAT).

· Convention on the Elimination of all Forms of Discrimination Against Women (CEDAW).

· Convention on Rights of the Child (CRC).



II. Additional guidelines to assist judges in interpreting statutes. Additional source of law to assist judges in interpreting statutes.



· International treaties signed by Australia act as additional guidelines for judges when interpreting statutes. This will ensure judges keep up to new evolving international standards when it comes to judicial law making.

· Additional source of law on top of domestic law. This ensures that domestic laws in Australia are constantly being ‘updated’ by new sources of laws if treaties signed by the Executive are passed by the Legislature (Parliament). This ensures that a domestic law in Australia does not remain stagnant and evolve according to new international norms.



Example: Enacting the Consequential Amendments Act 2002 (Cth) which incorporated offence of genocide into domestic Australian law.



Teoh’s Case * elaborate on the applicability. Note: the doctrine of Parliamentary Supremacy or Parliamentary Sovereignty against the judges decision in Teoh’s case.







III. Influence Australia’s trade policies and trade legislation. Facilitate enactment of Australian laws to improve Australia’s economy and international trade with other countries.



-US – Australia Free Trade Agreement: refer to page 125 of the textbook.

-Other International Trade Treaties.

· Facilitate safer inter-state relations

· Enhance international cooperation and understanding with other Australian trading partners.

· Trade treaties such as WTO Agreements and the United Nations multilateral treaties are shaping the way trade is conducted. Adopting these treaties sends a signal to international investors and trade operators that a country is serious about creating a secure climate for business.



IV. Affect Australian laws and policies on security and defense in including Australian criminal laws. (for example relating to terrorism laws *refer to example given in Lesson 33, referral of powers on new codification of criminal laws relating to terrorism).

· Improving the defense in Australia, the region and the world in general



· Defense Agreement between the government of Australia and the government of the Republic of Singapore concerning the use of Shoalwater Bay training area (Queensland) 2005.



· Australia’s role in Iraq and Afghanistan.





V. Preserve international stability and act as a guideline to resolve international territorial disputes, law of the sea.



· United Nations Law of the Sea (UNCLOS) (refer to Lesson 34)







VI. Extradition treaties, ensure criminals are prosecuted.

· signatory to the Geneva Convention 1949

· Enacting the Consequential Amendments Act 2002 (Cth) which incorporated offence of genocide into domestic Australian law

· Relationship with the ICC

Federation

Federal System -
System of government in which a national government and state government have their own independent legal systems and law making powers

Federation -
Forming of a nation by union of states which give up some powers and responsibility to national government.

Stages

1)Pre-convention stage
involvement in pre-federation colonial conferences and agreement

2)Australasian conventions
participation in two formal australasian conventions to draft the constitution

3)Colonial ratifications
passing of enabling bills to conduct colonial referendums to get the approval of the colonists for the federation proposal

4)British approval
negotiation with britist government to have them sponcor the bill through the Imperial Government

5)Proclaimation and Inauguration
1 january 1901

1840s-1901


Reasons -

institute free interstate trade and national defense arrangements

Restricted immigration policy
industrial relations systems to resolve interstate disputes
national approach to communication networks