Last night’s budget contained an important step towards realising a National Disability Insurance Scheme (NDIS), with $1bn allocated over the next four years. Of these funds, $342.5 million will pay for individualised care and support for 10,000 people in four yet-to-be-announced “launch sites” in 2013-14. The trial will grow to include 20,000 people by 2014-15.
The remainder of the funding will go towards the set-up costs of the NDIS over four years, including systems for data collection and analysis, local area coordinators, a new agency to oversee implementation and manage delivery, assessment of need and monitoring of outcomes and the effectiveness of the scheme.
The government’s announcement will see people assisted by the scheme a year earlier than the timeline the Productivity Commission suggested in its 2011 report into disability care and support.
But there are some major shortfalls in last night’s announcement.
The Germany that engaged in the successful 1973 float of the DM, now seems to be missing the main point of that decision. That monetary autonomy is valuable.
Also odd is German backing of currency areas across very differing economies, in tandem with federal fiscal rules absent a federal government.
Inflation and threats to currencies loom large in German history and so German activism on such matters is no surprise. But what is a surprise is the evident failure to get the core issue of monetary autonomy right.
The rise of Hitler was a cataclysmic response to hyperinflation that destroyed German savings of the 1920s. German Marks traded at 67 billion to the US dollar in 1923. Notes were carried in increasing numbers of wheelbarrows, as people desperately sought scapegoats and new leadership.
Few economic challenges are as potentially destabilising as threats to currencies – or exchange rates. German history, including the rise of Hitler, was a shattering response to the hyperinflation that destroyed savings in the 1920s. Assets had been destroyed by a currency that in Nov 1923 traded at 67 billion to the US dollar. Inflation that meant money was carried in wheelbarrows; and one needed more and more barrows.
Ever since that time, German unions, businesses and households have been inflation averse to a very marked degree – which made the 1999 Euro decision understandable in non-inflationary times, but unwise given widely divergent economic conditions across Euro nations and an uneven level of fiscal discipline across many European countries.