The ALP - Arguing for a Minimum Program

 

by Dr Tristan Ewins ; ALP member of over 30 years

The ALP has long been characterised by internal ideological divisions between self-identifying social democrats and self-identifying socialists.  This division has always problematic because there are competing definitions of social democracy and socialism.  Sweden has been described both as socialist and social democratic. Democratic socialists always contested the notion that the former Eastern Bloc represented ‘real socialism’.   Other socialists continued to find inspiration in one or another form of Leninism.  Some self-identifying social democrats simply see their politics as ‘progressive but moderate’.  In a relative sense we think here of a ‘traditional social democracy’. Other social democrats identify as ‘revolutionary social democrats’: basically a continuation in the tradition of early Marxism. (before Leninism, and typified to a degree by the example of Austrian social democrats in the 1917-1934 period)  This paradigm of socialism (the Austrian example specifically) is notable for adherence to revolutionary aims ; even if pitched as ‘revolutionary reforms’ or ‘slow revolution’.  It is not opposed to socialism (or democracy) as such – but rather is a reclamation of an old politics where ‘socialism’ and ‘social democracy’ were not opposed to each other.  The question I intend to explore here is ‘what is a reasonable minimum program for the ALP, which brings together the Party’s diverse ideological elements?’.   What elements of a Party program should all members of the ALP share adherence to?  This is no easy question to answer: as there must be a degree of ‘give and take’, but without compromising on certain basic issues.  There’s also the question of what the modern ALP Left should stand for: and whether or not it is also ‘losing its way’.

The ALP used to adhere – in theory – to its own ‘Socialist Objective’.  This was always complicated by the so-called ‘Blackburn Amendment’ which committed itself to socialisation to the extent of eliminating “exploitation and other anti-social features”.   It was long considered by some as a ‘dead letter’ ; at odds with the practice of actual Labor policy ; and containing a contradiction: at least as far as Marxism is concerned.  For Marxism exploitation is structurally inbuilt in capitalism (expropriation of surplus value) : and socialisation must be absolute to eliminate it entirely.  Arguably the Objective was also at odds with political practice on the ALP Left ; despite the Left fighting tooth and nail for many years to preserve it.  When arguing for the preservation of the Objective Left leaders such as Kim Carr watered down their arguments to the point  where there was a very significant loss of meaning and content – in an attempt to broaden its appeal.  Guy Rundle has described Carr’s project as one of ‘national social democracy’ characterised by greater self-reliance in manufacturing.  But does this meet appropriate minimum requirements as a ‘stream of socialism’?  Meanwhile, Rundle portrays the rest of the party of embracing “distributionism” which aims to broaden economic ownership, including a place for co-operatives, but does not aim to negate capitalism’s core dynamics.  This means more than competition and markets ; it means accumulation of capital and hence political power in the hands of a dominant capitalist class – achieved through economic relations of exploitation. Meanwhile  avowed ‘Third Way’ politics water down social democracy itself – even in the traditions of ‘mixed economy and welfare state’ – to the point of meaninglessness.

For socialists in the Labor Party the reality is we cannot have it all our way.  And there are questions as to what ALP Left politics are really about these days anyway.  Cynics might argue that in practice the ALP Left simply stands for “a slightly bigger welfare state and social wage” ; and “a slightly more progressive tax system”.  Though incremental improvement of welfare, progressive tax and the social wage is desirable if the progress is sustained. The Left itself needs its own statement of beliefs: which involve a more fundamental critique of capitalism.  This might include critiques of monopolism, exploitation, alienation created by physically demanding work, and work involving lack of creative fulfilment and control ; as well as economic cycles and crises, and the distribution of political and economic power.  But these could also include building blocks for the broader Party.

To begin it is worth considering the common ground between different schools of socialism and social democracy in terms of a minimum program.  This would be inclusive of a steadily expanding social wage and welfare state – preferably to Nordic proportions. (in the sense that was realised at the height of Nordic social democracy)  Though Nordic Social Democracy has long been in retreat ; and this means we need to take their example with a grain of salt.   This means more robust pensions ; comprehensive socialised health (including Medicare Dental)  ; and appropriate subsidies for services and amenities  fundamental to modern human existence. This includes power, water, socialised or co-operative housing, communications (including internet access), transport, availability of nutritious food, and so on.  Ongoing Education is also crucial to modern life ; and all people ought be able to pursue personal fulfilment through education as well as skilling up to meet labour market requirements. 

While the reality is that the modern labour market is characterised by exploitation (workers do not keep the full proceeds of their labour power) , we do operate in a global economy where it is necessary to sell labour power in order to participate.   Right now there is ‘no way out’ of capitalism ; but that does not mean we cannot have a critique which informs strategies which address the anti-social, irrational and unfair features of the system. The Left should have a critique – including of the core workings of capitalist political economy ; and it needs a code of principles which provides this ; but a minimum program for a wide range of socialists and social democrats also needs to account for an alliance of forces including elements who are not committed to negating capitalism ; even far into the future.  Something needs to change in discourse more broadly – with an effective counter-hegemony - to achieve anything like a consensus on a Socialist Objective within the ALP.  This means we need a mobilised Left fighting to challenge ‘common sense’ ideas both within and outside of the Party.  Arguably the Communist Party of Australia used to play this role very effectively ; as did other Western Communist Parties - even though they did not usually enjoy significant electoral success.  (The Communist Party of Italy – the PCI - is a very important exception ; having won very strong electoral success for many decades)

That said, a minimum program could include a commitment for the foreseeable future to a democratic mixed economy ; or a hybrid system.  Strategic socialisation should be pursued for reasons of economic efficiency, equity, and sovereignty.  In areas characterised by a lack of competition, or by collusion – government business enterprises can be a game changer.  Think banking, general insurance, health insurance, postal services. In other areas it is appropriate to have natural public monopolies.  Infrastructure in energy, water, communications, transport -are other areas where the logic of natural public monopoly ought apply.  Public monopolies in these fields translate into reduced cost structures ; with the benefits flowing on to the economy more broadly, including consumers.  Governments – including Labor Governments – have systemically undermined the place of natural public monopoly in the economy.  But we need a debate on this within the Party ; about a commitment to strategic public ownership ; and if possible to natural public monopoly in specific fields such as water, energy, transport and communications infrastructure ; as well as a restoration of a public sector job network after the example of the old CES.

Still ;  it is hard enough already getting many self-identifying  ‘moderate’ social democrats to even agree to restoring a public sector role in these fields (in competition with private enterprise) ; let alone restoration of natural public monopolies.  Nonetheless the Left should lead a debate on natural public monopoly and strategic (including competitive) government business enterprise.  Specifically, a minimum program should refer to a democratic mixed economy ; and this should frame an internal debate which the Left tries to lead.  Government could also invest in primary industries ; and in Australia especially there is great scope to benefit from a public role in minerals exploration and mining.  Billions in revenue could be directed towards social programs.

Co-operatives could also play a central role in a democratic mixed economy ; and as far as they reach they attack economic exploitation at its very roots.   It’s important to observe, however, that even in Spain where the successful Mondragon Co-operative operates – that co-operative ownership is not very significant in the context of the broader economy.  But particularly, in Australia government could underwrite co-operative enterprise to enable it to remain competitive on global and local markets ; including by investment in Research and Development and economies of scale.  Government could also provide cheap loans to facilitate the establishment of co-operatives ; including smaller scale co-operatives – eg: co-op cafes – which not only attack exploitation ; but which also allow intimate creative control by workers.  Strong policies could secure a significant (as opposed to marginal or minimal) place for co-operatives in the Australian economy.   But importantly, co-operative enterprise is not a substitute for the public sector: both play a core role in a democratic mixed economy.  Commitment to promoting a greater and greater role for co-operatives in the economy needs to be integrated in a minimum program.

Other areas where an agenda of popular and workers control could be advanced include co-determination and collective capital mobilisation.  In Australia superannuation funds have become powerful players in investment.  Though they operate in the capitalist context ; and tend to adhere therefore to capitalist imperatives.  (eg: share value maximisation) Hence they advance a distributivist agenda ; but not much which is more radical.   Also public pension funds would have been more equitable ; and the superannuation system threatens the eventual marginalisation and undermining of the public Aged Pension over time.

Meanwhile, co-determination can manifest either as consultation, or in the sense of all parties having to agree on major decisions. In Australia the starting point would be workers’ representatives on company boards. Hence workers could have ‘an insiders’ view’ on the decisions affecting their productive lives.  This specific strategy would not be radically transformative in the sense of workers’ control ; but it would be a step forward.  Again we need to set the broad framework in a minimum program ; and then for the Left to lead a debate within that framework.

There is a broad scope to reform welfare. Labor should also be committed to strengthening the Aged Pension, Disability Pension, Job Seeker’s Allowance,  Sole Parents’ Pension , Austudy, and other welfare.   The Disability Pension (and National Disability Insurance Scheme supports) should be for life- in the sense of not being withdrawn depending on age.  Also, there should be more scope to earn additional income through casual or part-time work (or other means) without losing the Disability Support Pension. And entering into a relationship should not see a substantial portion of welfare payments withdrawn.  The NDIS should be strengthened more broadly also  ; not undermined.  University fees should be replaced by progressive tax levies which effectively relate proportionately to the actual financial advantage gained.  A Garaunteed Minimum Income relating to the cost of all fundamental needs could consolidate basic universal economic rights.

In a minimum program reference could be made to all pensions ; and the imperative of providing them on the basis of need.  (again perhaps expanded, and then indexed quarterly to inflation or cost of living – whichever is greater).  The debate on a Garaunteed Minimum Income can be won ; but it may take time to integrate it into a Minimum Program.

Finally there are issues of human rights, labour market and industrial relations rights, and housing – which also need to be addressed in a Minimum Program.  Labor needs to be unequivocal in a Minimum Program in its commitment to freedom of association, assembly and speech ; as well as the right to basic needs such as housing, heating, cooling, nutrition, education, health services, access to transport services, and access to communications and information technology.  This needs to be amended as new relative rights and needs arise with technological and economic progress.  The right to engage in Pattern Bargaining and to withdraw labour in good faith (whether for industrial or political goals) needs to be promoted ; and at the lower end of the labour market especially more robust minimum standards and regulation need to be provided for.  This should have a substantial effect if implemented in the case of heavily exploited ‘feminised’ industries.

Again, shelter is a human right ; and government policy (including provision of public housing) should seek to achieve its universal fulfilment. Government could also help facilitate co-operative housing, and affordable housing – through subsidies and regulations.  The Federal Government and the States have long lagged behind here ; and support from the Federal Government especially is needed – as they do not endure the same fiscal constraints as do the other tiers.  Recently there has been a trend to promote ‘affordable’ housing (as an alternative to public housing) through deals with private developers ; but while this strategy can provide better outcomes for some renters, it does not achieve either efficient financing or equity compared with public housing.  Labor needs a minimum program which significantly expands an ongoing policy of building enough high quality public housing to meet the demand ; while looking to the Austrian example to destigmatise public housing and establish it as an option for all Australians ; including but not limited to the most disadvantaged.  A minimum program needs to aspire to this ; and it should not be controversial for genuine social democrats and socialists.

In conclusion Labor also needs an independent foreign policy outlook and a humane policy with regards to rights of asylum seekers. We should lead the way on defusing conflicts between China and the United States and heading off any potential war. And there is no place for Mandatory Detention in any Party of the broad Left.   We should also promote 'deep democracy' ; supported through civics education 'for active, informed and critical citizenship' ; and government programs which put active citizenship at the centre of policy. This could include government funding to access public space - including, for instance shopping centres - where political and social movement organisations across most of the spectrum could promote their own ideas of 'active citizenship'.

In short – and to summarise in conclusion - a Minimum Program should promote a progressively expanding social wage and welfare state ; as well as a democratic mixed economy – with stronger public and democratic sectors which aim to improve underlying cost structures to the benefit of the broader economy and consumers - through strategic public ownership.  Here, the social wage includes socialised health and education ; and ensuring universal access to shelter (including public housing) , information and communications technology, transport services ; and a minimum income where access to energy and water is also universal.  And with a steadily more progressively-structured tax system – with an open commitment to just economic redistribution.  And we will define the welfare state’s role as comprising social provision of income ; especially the vulnerable ; with cross-over between welfare state and social wage where it comes to social services.  

Also the minimum program should include reference to the progressive expansion of economic democracy on several fronts ; and the provision of fundamental industrial and broader human rights.  This means a regulated labour market and the right to withdraw labour in good faith for industrial or political purposes.  As well as the minimisation of the anti-social complications of capitalism ; including its crisis-prone nature ; its tendency to concentrate wealth and promote monopolism ; as well as problems of inbuilt obsolescence – and of collusion and other anti-competitive or anti-consumer practices.   Also ‘the market’ does not necessarily ‘organically’ provide for human need – though there is a role for it in providing for the flexible satisfaction of individualised needs structures.   The need for choice – and hence competition – means there are limits to socialisation – at least under current conditions. ‘The market’ has a place ; but so too does social provision which goes beyond ‘market logic’.

This article has sought to explore the issues which should inform a minimum program for the ALP.  It should be possible to win broad agreement on most of this article’s broad tenets.  In other areas the article has outlined areas where minimum policies could be applied ; but where the Left should lead the debate in terms of achieving stronger policies. 

Also importantly ; there are limits to purely electoral politics – and there is a need for an organised counter-hegemony.  The counter-hegemony should seek a more radical reframing of debate and issues than the minimum program ; and it is necessary to build an alternative to the old Western Communist Parties who used to contest ‘political and economic common sense’.  But that is beyond the broad scope of this article. 

The point is that it is possible to achieve broad agreement on a minimum program which mobilises the broad Labor Party and frames its policies.  The minimum program, here, attempts to frame the ALP as involving currents ranging from traditional social democratic (mixed economy, labour rights and welfare state) on the relative right, to democratic socialism and revolutionary social democracy on the Left.  And these various currents are considered as being capable of solidarity behind basic programmatic and policy principles and agendas.  The most diluted ‘Third Way’ positions – which stand for little in terms of the traditions of social democracy or socialism – need to be seen as liquidationist – and hence are not accepted within the framework of the minimum program.

It is hoped that this article will promote debate and influence the development of the ALP’s Platform running up to the next National Conference.  And also the development of a program behind which both elements of the ALP Left and the ALP Right might be able to coalesce ; as well as non-aligned elements.  This goes so far is to problematise the very idea of an ‘ALP Right’ which is right-wing on the broader political spectrum. Even the most relative right-wing elements in the ALP should be relatively Left on the broader spectrum.  We all need to see ourselves as part of a ‘broad Left’, and in this sense having common cause.  Once we agree on this perhaps we can truly ‘move forward together’.

On Socialism Today - Planning a Way Forward

The following article - which the author plans to submit for publication by the Australian Fabians - is an in depth survey of the background and options for democratic socialism in Australia and the world. The idea is to spark debate in the lead up to a series of events in Victoria planned for 2020. Your contributions to the debate are also welcome!

Dr Tristan Ewins


Socialistic sentiment can be traced back to the slave revolt of Spartacus and Peasant uprisings in Europe ; for instance that led by Thomas Muntzer in Germany. But ‘modern socialism’ began with those labelled as ‘utopians’ by Karl Marx. Figures like Robert Owen – who personally wanted to convince the bourgeoisie (and nobility) of an egalitarian, communal society based around the means of production. (specifically communes of up to 3,000 people) And all those others who depended on a ‘socialist vision’ to convince people of the desirability of a socialist order ; as opposed to Marxists who based their approach on ‘the fact of class struggle’.

Generally, socialists preferred equality ; an end to exploitation ; extension of democracy to the economy. Marxists wanted to socialise the means of production to end both exploitation and the destructiveness and wastefulness of capitalism and its boom-bust cycle.

But Marx had another criticism of capitalism ; and that was the way in which the division of labour and demanding nature of much work traumatised workers. This was his theory of Alienation. Today in Australia for instance we are a world away from the working conditions of the 19th Century. But in call centres, offices and factories the division of labour can still exclude creative control and work fulfilment. Indeed, work conditions can still be traumatising.

In Germany where the class struggle was advanced the Social Democrats arose as a combination of the Marxists (Eisenachers) and the Lassalleans. Lassalleans (led originally by Ferdinand Lasssalle) believed in industry-wide co-operatives with state aid. Eventually Marxism became dominant. But by 1914 in Germany right-wing ‘socialists’ had come to predominate in unions and the parliament, and those people eschewed internationalism and supported the First World War.

Before World War One both the European and British socialists supported the class struggle and the fight for universal suffrage to advance workers’ rights. But Britain was relatively liberal ; and this resulted in less emphasis on revolution and more emphasis on incrementalism.

Fabianism arose in the 1880s ; and came to represent a movement to influence opinion in liberal and progressive circles. Especially in the Labour Party in Britain. Beatrice and Sidney Webb (prominent British Fabians) expressed sympathy with the achievements of Soviet Communism – but that view did not last. Some Fabians would focus on practical public policy ; others on the more radical aim of incrementally replacing capitalism. Again: Generally Fabians were gradualist rather than supporting a ‘sudden rupture’.

Modern Australian Fabianism shared the British Fabian principles and was formed organisationally in 1947. The height of Fabian influence was in the Whitlam Labor Government.

After World War One the broad Left was generally divided into Communist, Social
Democratic and Labourist Camps. Although pockets of Social Democracy remained highly radical – as in Austria in the 1917 to 1934 period. (Austro-Marxism) These sought a ‘middle path’ between Bolshevism and ‘mainstream’ international social democracy. And there were anarchists and anarcho-syndicalists – who were significant in the Spanish Republican forces and the fight against the Nazi-backed fascist insurgency of Franco in the Spanish Civil War.

From the 1940s through to the 1980s Swedish Social Democracy enjoyed remarkable success (replicated to various degrees in other Nordic countries) with full employment, active industry policy, strong unions, and a strong welfare state. For the overwhelming majority of this period Social Democrats held government. Basically workers received social security in return for a ‘corporatist settlement’ including wage restraint. The full employment achieved under the ‘Rehn-Meidner model’ also made a stronger welfare state possible. Though Walter Korpi conceived of the Swedish situation differently: as a ‘democratic class struggle’, involving mobilisation of ‘Power Resources’ and compromise depending on the balance of class power. But in the 70s and 80s Sweden also had to respond to the Oil Shocks and devalue the Krona. The ‘Meidner Wage Earner Funds’ plan sought to compensate workers for wage restraint by giving them collective capital share. But this implied a radical redistribution of wealth over time. Also - because it appealed only to workers and not to citizens, it could be argued that the funds could have included a wider base. (which is democratically preferable anyway) Capitalists went on the offensive : socialists on the defensive. And there has been a slow retreat since.

Up until and including the 1970s and 1980s there remained strong pockets of radicalism in many Labourist and Social Democratic Parties. But the Oil Shocks of the 70s and the drive to restore profits divided the Left and led to Socialist retreat. Also the Soviet Collapse during 1989-1991 had an enormously demoralising effect on the Western Left ; despite the fact the Western Left had long distanced itself from Stalinism. It’s not unreasonable to see the Gorbachev reform movement as a window of opportunity ; and a missed opportunity.

From Hawke and Keating onwards Australian Labor has broadly internalised neo-liberal Ideology. Small government, privatisation, free trade, limits on the liberties of organised labour, trade agreements which give capital an effective ‘veto’ on regulation and public sector expansion. Marxism used to have a strong base in the Socialist Left. But increasingly the factions have lost ideological cohesion ; and have been subsumed in the mainstream political discourse.

Indeed, the experience of Hawke and Keating inspired Tony Blair and Antony Giddens with their ‘Third Way’ or ‘Radical Social Democratic Centre’. In the 19th and early 20th Centuries ‘Centrism’ had been a largely Catholic phenomenon including limited support for trade unions, labour market regulation and welfare. Since Giddens and Blair the ‘Third Way’ has come to represent ‘neo-liberalism with a human face’. Punitive welfare on the one hand, but also the principle there should be an economic and social ‘floor’ below which no-one should be allowed to fall. Blair also marginally increased tax. (will Australian Labor still consider tax reform for the next election?) But he would not retreat an inch in opposing any re-socialisation – no matter how badly privatisation had failed. (eg: of railways) In Australia more recently ‘Centrism’ as epitomised by the ‘Centre Alliance’ struggles to maintain a credible liberalism – let alone any kind of social democracy. For instance there is conditional support for the ‘Ensuring Integrity’ union-busting legislation. Today ‘Centrism’ in Australia can mean a shallow populism cashing in on broad disillusionment with the two party system. Significant parts of the ALP Right consider themselves ‘Centrist’ after the Blairite model. Blairites also generally accept capitalism as a given.

Fast-forward to 2019 and ‘What is to be done?’.

Capitalism remains more vulnerable than people think. There is much focus on public debt, but private debt is a ‘ticking time bomb’ that could lead to loss of confidence, panic and collapse. In Australia, the US and much of the world private debt is many times the level of public debt. The Australian economy especially has come to rest on the housing bubble. Millions are locked out of home ownership ; but sudden and radical devaluation would cause panic and collapse. The boom-bust cycle remains a fact: but governments focused on public debt are less likely to engage in counter-cyclical measures. This could one day mean recession (or Depression) as the ‘solution’ to indebtedness. Modern Monetary Theory (MMT) has it that government can ‘create money’ at will ; but this is not without limits. It involves a degree of redistribution which capitalists hate – but also inflation. Progressive tax is still more effective at redistributing wealth in a targeted and progressive way. But certainly the MMT crowd are on to something.

The Labor Party today is probably inclined to want to ‘save capitalism from itself’. The welfare state and higher minimum wages can assist by boosting expenditure and demand. A return to a meaningfully mixed economy can help by reducing cost structures via natural public monopolies. This could flow on to the private sector as well. As well, this could counter oligopolistic collusion – for instance in banking. (actually promoting competition) Higher government expenditure can also add money to the economy ; increase demand ; and ameliorate the explosion of private debt – which is a ticking time-bomb for the economy. (here and globally)

An expanded social wage, welfare state, collective consumption and social insurance – can also provide social justice and social security. Think reformed pensions – easing means testing and increasing payments. Public housing. Better-funded schools and hospitals. More money for the Pharmaceutical Benefits Scheme. More efficient public provision of infrastructure. (because of a better rate of borrowing and a ‘public interest test’ rather than share value and dividend maximisation) Also consider National Aged Care Insurance and a withdrawal of regressive user-pays mechanisms. As well as a retreat of user-pays in Education.

These are ameliorative reforms that can improve peoples’ lives. But Australia is still captive to the global economy and will suffer along the rest of the world in any ‘general downturn’ or ‘collapse’.

Over the long term we still need to think about an alternative to capitalism. Sub-Prime and the Global Financial Crisis did not only reveal instability – It also revealed the gap between Use Value and Exchange Value as Marx would put it. That is: there was an abundance of housing amidst widespread destitution and homelessness. This is a real capitalist failing and vulnerability.

Marx’s weakness was that he did not propose any concrete alternative vision to capitalism. He assumed ‘the class struggle would take care of things’. So maybe in part the ‘Utopian Socialists’ were on to something? The context of class struggle had to be engaged with ; but also concrete visions for the future. Today perhaps we need ‘provisional utopias’. We cannot afford to be ‘a force of pure negation’ with no vision for the future. Especially after the real historical experience of Stalinism.

But capitalism is a globally-reinforcing system. You can’t just ‘go it alone’ in revolutionising the entire economy. There are economic AND political constraints.

But what can be done is to begin a process of ‘revolutionary reforms’. Say in the spirit of the interwar Austrian Social Democrats. Even today in Austria there is a legacy in Vienna of 60% public housing – and overwhelmingly high quality public housing. A ‘democratic mixed economy’ would stabilise capitalism (through strategic socialisation and redistribution) while at the same time advancing towards an alternative. As in Austria this would also involve a counter culture: a rebuilding and reassertion of the labour movement ; but also a coalition with other social movements. What Gramsci would have called a ‘counter-hegemonic historic bloc’. That also involves establishing online presences ; other publications ; public meetings ; progressive radio and television ; social events of various kinds ; plays ; workers’ sport ; radical music etc. Establishing footholds where-ever possible.

Importantly the decline of industrial labour (with ‘deindustrialisation’) has widely meant a decline in class consciousness. Service sector workers can be just as exploited ; but are more likely to think themselves ‘middle class’ or lack class consciousness. We can and should fight this. But the industrial working class might not any longer be seen (in the Marxist sense) as a ‘finally redemptive’ ‘universal historic subject’. The labour movement is central: but the modern Left also needs alliances.

And should another Global Financial Crisis occur the big finance houses should not be ‘bailed out at the public’s expense’. Where the public sector steps in (if that occurs) it should retain a share in ownership.

Of course when it comes to advanced socialist transition bourgeois economic and political resistance has to be expected.

The ‘democratic mixed economy’ should be the short to medium term model. That includes a key place for natural public monopolies, strategic government business enterprises , consumers and workers co-operatives of various sorts (including multi-stakeholder co-ops which bring workers, governments and regions together) , mutualist associations . As well as ‘collective capital formation’. ( The Meidner Funds were such ; In Australia superannuation was a very pale imitation which may actually endanger welfare into the future by narrowing its base) ‘Multi-stakeholder co-ops’ are an important idea - as they could enable expansions of economies of scale to retain competitiveness under capitalism. All these are part of a concrete alternative.

There is also a need to restore and consolidate industrial liberties ; to increase organised labour’s power ; its ability to deliver ; and hence its coverage, strength, and ability to contribute to change.

Furthermore: how do we tackle ‘alienation’ today in Marx’s sense? Even with deindustrialisation, workers still find themselves alienated in modern professions – for instance call centre workers. The ‘post-industrial utopia’ has so far failed to emerge. At the least we can improve wages and conditions for the most exploited and alienated workers with low-end labour market regulation. (and maybe government subsidies where the market will not bear higher wages) Perhaps enabling a reduction of the working week for many. (though others would crave longer hours) ‘Free time’ is perhaps one alternative (for now) to Marx’s vision of a communism where workers regained creative control ; and labour becomes ‘life’s prime want’. (a quote from Marx) But ‘alienation’ is a feature of broader Modernity and not only capitalism. The rise of co-operatives could at least facilitate worker control – also ameliorating alienation.

In the final instance we need to think of where improvements in productivity could lead. Either to greater equality, plenty and free time for everyone. Or in the capitalist context only the intensification of growth, profit and exploitation. And possibly greater inequality if we do not socialise much of the gains of productivity. What Marx called the ‘coercive laws of competition’ means that competition forces a focus on productivity for capitalist profit and short term economic advantage. The problem is finding a way out of this ‘circuit’. (as well as the intensification of exploitation ; and a 'lagging behind in wages' in labour intensive areas where productivity improvements are hard to come by) We need to think where free trade and internationalism fit in to this problem. There are environmental implications as well. Capitalism by its very nature will trend towards the ‘endless growth’ option. Perhaps if the emphasis is on information and service industries it could be more environmentally sustainable.

But Sweden is also a warning. Again: there has been retreat since the Meidner Wage Earner Funds. The ‘corporatist consensus’ delivered for several decades in Sweden. But since the bourgeoisie ‘got cold feet’ and organised more overtly against Swedish social democracy – there has been a retreat. Swedish social democracy now has to work with Swedish Liberalism to keep the right-wing parties out ; and the price has been a retreat of the Swedish welfare state and progressive tax. In short: Socialists and social democrats have to be ready for capitalist backlash.

Class struggle creates change. That remains true. But so too do broader coalitions, cultural and electoral strategies. The Fabian Society in Australia is placed to mount cultural interventions ; and hence influence the electoral strategies of the Labor Party and the broader Left. We won’t get all that we want all at once. But we need a critique of capitalism. We have to be prepared for future crises. We have to think what a transition would look like: under what circumstances and what time frame? But all the time considering the reality of power – economic and political ; including the power of the State. And all in a global context: where global progress remains limited without global consciousness and organisation. Which is something the Fabians also need to be thinking about. Building ties with Democratic Socialists of America, for instance, could be a fruitful endeavour.

The Fabian Society re-embracing its place as an organisation of democratic socialism means engaging with these problems. For the short to medium term it is to be hoped we have an important strategic place in developing a ‘democratic mixed economy’ ; critiquing capitalism ; and imagining ‘revolutionary reforms’ which could decisively shift economic and political power over the long term.

An Australian Response to Tony Blair: ‘Convergence Politics is not the Answer’

above:  Tony Blair urges Bill Shorten to 'return to the centre'

By Tristan Ewins

The ‘Weekend Australian’ (8/10/16) quotes former Labour British PM, Tony Blair as urging Bill Shorten to tack “back to the centre”. Typically, Blair holds that the occupation of ‘the centre ground’ is crucial to building a significant-enough constituency to carry an electoral majority. And that regardless of this ‘it is the right thing to do’. Furthermore, Blair contends that Australian Labor must not only “talk to its core constituency”. (ie: we might reasonably assume he means ‘the traditional working class’).

Blair also warns of the danger of unions becoming a small ‘c’ conservative force: mainly fixated on the public sector, and unable of grappling with the nature of today’s private sector – where unions have long been in decline.

Finally, Blair makes the usual assertion that parties of the ‘centre-left’ must be about ‘growing the [economic] pie’ – with the implication that ‘dividing the cake more fairly’ runs contrary to this.

British Labour leader Jeremy Corbyn is dismissed as ‘ultra-left’, with Blair raising his head as the champion of the globalist, cosmopolitan ‘third way’ ‘social democracy’ popularised by Giddens and others. Importantly: ‘globalisation’ is not some single, homogenous phenomena. There are desirable aspects of ‘globalisation’ as well. Though specifically, here, we are concerned with its neo-liberal guise; including how that applies to world investment and trade.

To briefly engage with some of Blair’s contentions before moving on:



There is truth in the observation that organised labour must ‘return to the private sector’. Indeed a strong foothold in the public sector could provide a base from which solidarity could be extended to less-secure private sector workers in the midst of industrial upheavals. Furthermore, Labor’s legacy of labour market deregulation must be reconsidered ‘at the lower end’ – with the aim of ending the exploitation of various workers in areas as diverse as child care, aged care, cleaning, retail, hospitality and so on.

Labor’s ‘natural constituency’ – the broader working class – is still very much in the majority (if one focuses on the social relation of wage labour, as opposed to peoples’ ‘self-identity’). Labor’s difficulty is not the dissolution of the working class: but the development within it of various conflicts and contradictions. Including conflicts of ‘consciousness’ and ‘identity’.

For example: there are residual delusions on the part of some white collar workers that they comprise ‘the middle class’ ; which are reinforced by social democratic reluctance to actually speak of ‘the working class’ – and elucidate what that really means today. Also: there is the supposition that ‘Labor’s base’ can be taken for granted – and that it’s ‘the swinging middle’ that really counts.

Class loyalties do not necessarily shift straight away – but over generations. Surely the United States shows the consequences where the US Democrats have long spoke only of ‘the middle class’, and could not bring themselves to prioritise discussion of ‘the working class’. They did not deliver workers from the ravages of deindustrialisation and ‘the neo-liberal version of globalisation’. And demagogues such as Trump have filled the vacuum. Trump does not represent workers’ interests; and this could be made apparent if only the Democrats would rise to the occasion. Similarly, Labor must overcome and heal the internal divisions within the Australian working class to promote a social democracy which appeals to the interests of the majority of voters.

Also admittedly: Unions are not ‘essentially progressive’ even if their class location positions them to effectively promote the interests of the majority of the labouring masses (as against a minority bourgeoisie). German unions, for instance, were central to mobilising the war-effort in Germany in 1914 ; and beforehand had turned against more radical elements who had traditionally led the Social Democrats, and who would come to oppose that conflict. That war decimated German social democracy, and also the German working class.

Revisionist socialist scholar and parliamentarian Eduard Bernstein also warned that specific unions had the potential to become ‘corporate interests’ who furthered their own dominance of particular markets and industries without prioritising the position of the broader working class and labour movement, and others amongst the disenfranchised and oppressed.

In Australia, meanwhile, (with a much different phenomenon) some right-wing unions have promoted agendas of privatisation and economic neo-liberalism; and some (such as the right-wing ‘Shop, Distributive and Allied’ union – or ‘SDA’) have at times abandoned their own members’ interests in order to secure industry coverage (and hence political power within the Labor Party) due to collusion with employers. Sometimes unions are seen as vehicles for political power and political careers, as opposed to being primarily vehicles for workers’ interests, and social democracy.

That said: these instances should not be taken as ‘typical’ of the Australian labour movement. Despite legitimate misgivings about The Accord years and their aftermath, for example, Australian unions waged a vigorous campaign against the Howard Government’s regressive ‘Workchoices’ industrial legislation. They are still capable of representing and mobilising their members, and of waging successful campaigns.

With regard the old shibboleth that neo-liberal economic policies are required to ‘grow the pie’: something ‘traditional social democracy (supposedly) is not positioned to do’ , we might make another series of observations. The Nordics have demonstrated that it is possible to build a robust public sector and welfare state; with saturation levels of unionisation ; and a culture of solidarity. In the ‘golden age’ of the Swedish ‘Rehn-Meidner’ economic model, this combined effective full employment with low inflation, and the extension of welfare and social services. If not for a series of tactical errors, economic democracy might also have been entrenched through the ‘Meidner wage earner funds’ initiative during the 1970s and 1980s.

In fact, today it is ‘the systemic imperatives of capitalism’ and capitalist Ideology that stand in the way of fulfilling the personal and social needs of humanity. Amidst greater abundance than has been known ever before in human history, we are informed repeatedly that we must ‘tighten our belts’. Welfare and social services are progressively cut. Education is for ‘industry needs’ and not ‘the development of human potential’. And of course ‘the user must pay’ (though this is taken to mean students; and not the corporations who benefit from the various skills and aptitudes which are developed). Improved life expectancy is seen as a ‘curse’ rather than a ‘blessing’. So the retirement age is pushed upwards incrementally. The elderly are made to feel they are ‘a burden’ , and working class people are expected to exhaust their assets and savings to pay for ‘aged care’ which denies them dignity, comfort or happiness.

Alongside an increased age of retirement, the intensity of labour increases. Capitalism demands growth into new markets to preserve its own stability; but with ‘globalisation’ (just for now interpreted as the expansion of international trade; though it has other interpretations) reaching its limits, markets for consumption depend on increasing the sheer volume of labour (and hence purchasing power). Though casualisation shows it does not always work out that way (‘capital mobility’ is another aspect of globalisation; as is the rise of a ‘global culture’ that emerges via improvements in communications technology; Marx himself had observed the emergence of a ‘world literature’ as early as the 19th Century).

Where technology does not improve productivity, instead productivity is tied to that intensity of labour. In Australia today improvement of wages and conditions are largely ruled out without such productivity improvements. Hence for a great many wages and conditions stagnate or are rolled back. Organised labour is vilified. The working poor are even played off against the vulnerable welfare-dependent with ‘the politics of downward envy’. In response the Left must promote a politics of respect and solidarity.

A move back towards a social democratic mixed economy could stabilise national economies and the world economy over the short to medium term as a consequence of superior cost structures. But this is eschewed for reasons of Ideology, power, and private greed. Instead trade agreements are deployed to break down any ‘barriers’ preventing the fullest possible exploitation of potential markets by multinational corporations. ‘Natural public monopolies’ could stand to be criminalised (ie: sovereign governments could be sued); as well perhaps as ‘market distorting’ initiatives which may promote economic democracy (for example, any scheme providing assistance to co-operative enterprise of various sorts). Amidst all this ; and even after the cataclysm of the 2008 Global Financial Crisis – Tony Blair and ‘The Australian’ are still trying to sell us ‘neo-liberalism with a human face’.

From the outset it is also worth observing that historical traditions other than ‘modern third way social democracy’ have also claimed the ‘centrist ground’ (for instance Catholic ‘social Centrism’ in Germany, and the Swedish ‘Centre Party’). Defining ‘the centre’ is fraught with possible confusion. As opposed to a linear ‘left-right spectrum’ a ‘political compass’ accommodates both economic egalitarianism AND personal and collective liberties. But Blair is employing a more ‘traditional’ left-right spectrum.

Hence Blair’s ‘centrism’ is confusing: sometimes comprising a mish-mash of liberal and authoritarian positions. Hawkish foreign policy; rejection of class struggle; embrace of economic and cultural globalisation; according to some interpretations implementation of ‘punitive welfare’ and labour conscription; and effective rejection of a traditional mixed economy in favour of privatisation and what we have come to know as ‘neo-liberalism’.

Also importantly: ‘the Centre’ is always RELATIVE. A political party which makes a habit of ‘passively occupying’ ‘the middle ground’ rather than striving to RE-DEFINE and shift it resigns itself to a passive or even reactive response to social issues and conflicts.

Under Hawke and Keating – who Blair praises profusely – Australia moved decisively to the Right on many fronts– embracing small government, privatisation, deregulation, dilution of progressive taxation, rejection of class struggle; widespread deindustrialisation ; and so on. Whereas Blair followed Hawke and Keating, Australian Labor in turn followed Blair. The consequence was a ‘rightward-spiral’ which was the undoing of social democracy and labourism as we had known them.

In a further article in ‘The Australian’ by Troy Bramston (8/10), poet, W.B.Yeats’s ‘The Second Coming’ is taken very much out-of-context. The title proclaims “Things Fall Apart – The Centre Can’t Hold’. Bramston is very much with Blair, fearing the decline of the ‘centre-left’ as a consequence of a more unambiguous left-turn by Corbyn. Corbyn (and perhaps by implication, Shorten) are portrayed as wanting ‘a return to the past’ rather than ‘progressing forward’. Ironically this implies the in-some- ways similar notion of a ‘progressive teleology’ as proposed by Hegel and Marx; and more recently by Fukuyama. ‘Neo-liberalism’ is upheld as ‘the progressive and objective direction of history’: in a way which denies historic choice; and the meaningful contestation of history by social actors.

The problem with Blair is that his position is very much one of ‘convergence politics’. ‘Convergence on the centre’ actually dissolves genuine ‘centre-left’ politics as we once knew them. Whereas democratic socialists once claimed ‘the centre left ground’ – roughly halfway between liberal centrism and the unambiguously revolutionary Left traditions; today ‘convergence on the centre’ is the undoing of meaningful democracy. It is the undoing of meaningful choice.

As French social theorist Chantal Mouffe has insisted ‘convergence politics’ ‘empties out’ democracy by denying real choice and democratically-mediated conflict as a consequence of ‘a rush to the Centre’. It is worth briefly considering her position – and that of critical theorist, Jurgen Habermas – to critique the ‘Blair-ite Third Way’ from different perspectives.

Whereas Habermas supposed a ‘deliberative democracy’, with the pursuit of a ‘perfect speech situation’ – or ‘communicative rationality’, Mouffe does not believe rational exchange and engagement can resolve all differences and conflicts. Still strongly-influenced by Marx, though, Habermas continues to suppose a ‘historical telos’; which will be realised through ‘communicative action’ (ie: rational engagement, argument and deliberation by social actors). Importantly, as opposed to Blair, Giddens, etc, Habermas was optimistic enough to suppose that this process would ultimately lead to socialism (realised via communicative rationality and not only through ‘traditional’ class struggle; hence some divergence from Marx’s original position).

Both Habermas and Mouffe are radical Leftist democrats, however; and BOTH Habermas’s ‘communicative action’ and Mouffe’s ‘Agonism’ reject ‘centrist convergence’. What is notable with Mouffe’s position is essentially that history is not assumed as ‘having a fixed direction’ (or ‘telos’). And as opposed to traditional Marxism, neither are particular social actors (such as the working class) assumed to have any ‘essential and fixed historic mission’. For Mouffe history is contested by social actors who articulate ‘counter-hegemonic strategies’. History is not pre-determined but rests on our CHOICES. Though Mouffe does accept that despite this capitalism has systemic imperatives and ‘logics’ that no isolated individual can challenge.

Here ‘meaningful choice’ – central to democracy – must mean a robust pluralism. But as opposed to older notions of class struggle, Mouffe’s ‘post-Marxism’ insists that:

“within the ‘we’ that constitutes the political community, the opponent is not considered an enemy to be destroyed but an adversary whose existence is legitimate.”

And most preferably these assumptions must cut both ways! (though it will not always be the case) Importantly, Marx argued for the dissolution of the bourgeoisie as a class; that is the dissolution of particular social relations – as opposed to the wholesale murder of human beings as occurred under Stalinism. But Mouffe insists an ongoing and legitimate place for pluralism, and hence appears to reject Marx’s notion of communism as ‘an end destination’ (or to put it in Marx’s own words, ‘the end of pre-history’).

So Mouffe assumes mediated conflict as being central to meaningful democracy. And the silencing of dissident voices by ‘third way, cosmopolitan, neo-liberal globalism’ could perhaps even lead to a technocracy – governance by ‘experts’ – and rejection of the proper place of democratic conflict.

Effectively siding with Blair, ‘The Australian’ has predictably embraced ‘neo-liberal globalism’.

Shorten has ‘been taken to task’ for a very modest step back towards traditional social democracy and labourism. Under Shorten there has been talk of enforcing corporate taxation and effectively tackling ‘corporate welfare’. There is talk of holding the banks accountable. ‘Small government’ is no longer explicitly endorsed (though neither is ‘big government’). “Trickle-down” is rejected.  In the ranks of Labor there is some talk of tackling obscene superannuation concessions which feather the nests of the unambiguously wealthy (to the tune of tens of billions annually) at the same time as vulnerable pensioners are vilified by the Conservatives for the sake of ‘budget repair’. But Shorten still insists on ‘budget repair that is fair’.

None of this is particularly radical! But as the Anglosphere and parts of Europe continue to turn Left in the wake of the 2008 Global Financial Crisis the voices of Conservatism and neo-liberalism have become more shrill. Modest reversions to ‘traditional social democracy’ are ‘fought tooth and nail’ as they ‘set a bad example’ which may provide a ‘turning point’ away from neo-liberalism, and the prioritisation of corporate interests in economics and trade policy. Bernie Sanders has seen the rise of a distinctly Left politics ‘into the US mainstream’. Accused of ‘ultra-Leftism’, in fact British Labour Opposition Leader, Jeremy Corbyn is also reverting to more-traditional Labour perspectives on the mixed economy, rights of labour; affordable education; and support for progressive tax; with a commitment to the NHS (National Health Service); as well as a rejection of ‘Hawkish’ foreign policy. This ought not be seen as ‘going backwards’ – because (contra-Marx) there is no objective definition of what ‘progressing forward’ actually means anyway.

With his warnings of ‘impending doom’ for British Labour – as well as the need for a ‘policy correction’ by Shorten in Australia, Blair does not seem to perceive the shift Leftwards in parts of Europe, and even the ‘Anglosphere’ itself. Ironically it is Blair who is ‘looking backwards’: to the 1990s – when ‘the historical moment was his’. Similarly ‘The Australian’ looks back to the ‘reform era’ where Hawke and Keating to a significant degree liquidated much of what had before-hand passed as labourism, social democracy and democratic socialism in this country. That’s not to say ‘Third Way’ theorists cannot strategise such as to set the agenda once more. But such success in the past is no guarantee of success today or in the future.

So history does not stand still. Over a quarter of a century after the fall of the Soviet Union neo-liberal triumphalism is beginning to wear thin. The Stalinist nightmare is fading from living memory; and the Democratic Left is finally re-emerging from behind its long shadow. Bernie Sanders has brought the American democratic socialist Left ‘into the mainstream’. McCarthy-ist hysteria is largely in the past. And despite defeats, parties like Syriza and Podemos have heralded the return of the Democratic Left after years utterly eclipsed by a ‘Third Way consensus’ in European social democracy.

Again: Amidst all this Shorten’s tentative shift to the Left is very modest. And hand-wringing by Blair and ‘The Australian’ that Shorten Labor must ‘return to the Centre’ clearly demonstrates how narrow a political milieu certain interests, as well as ‘the media establishment’ would have us choose from. ‘Convergence on the Centre’ denies politics; denies pluralist, democratically mediated conflict; and denies real democratic choice.

Nonetheless; Mouffe’s ‘Agonism’ suggests the possibility of a new pluralist democracy – where the democratic Left and the democratic Right accept each others’ ‘right to exist’ – and indeed their ‘legitimacy’ in the sense that voters and citizens must always be posed with real choices in order for democracy to flourish. And that certain liberties are necessary to overcome alienation; and socialists perhaps should even think of their adversaries here.

Perhaps therefore the Left could accept a place for Conservatism in a pluralist democracy; and on the basis of an inclusive public sphere; a more ‘level playing field of ideas’. But in Australia the monopoly mass media is dominated by figures such as Murdoch and Rinehart. The monopolists think they are in control and beyond effective challenge. Hence they do not discern any compelling pressures to accept a more inclusive public sphere; or say ‘active-critical’ civics and citizenship education curricula which also promote ideological and political literacy, and hence informed and participatory citizenship. Some would argue when the opportunity comes the advantage must be pressed. And so long as the Conservatives are not willing to accept the democratic and authentically pluralist principles promoted by the likes of Chantal Mouffe – then perhaps they have a point.

Also ‘social rights are human rights’. No less essential than civil liberties. And ideally should be constitutionally enshrined. Even though these matters should nonetheless be deliberated upon freely. There is the challenge of balancing the aim of ‘pluralism’ and hence ‘openness to change’, while striving for a ‘baseline consensus’ of liberal and social rights which is acceptable to the various social actors. Habermas believed this (and ultimately socialism itself) could be achieved via ‘communicative action’.

In many parts of the world ‘the tide is beginning to turn’. PERHAPS once again the future belongs to radical social democracy.

Critique of Labor and The Greens on ‘Policy Compromise’

 above: Labor and the Greens can work together; But need to be conscious of each others' electoral imperatives ; Carbon Tax was good policy ; but a 'political death warrant' for Labor

 

 

Dr Tristan Ewins


Recently the Australian Greens negotiated a compromise with the Liberal Federal Government in Australia on the question of pursuing tax evasion by “Australia’s wealthiest private companies”. ‘The Age’ reported that as part of the compromise “Up to 300 of Australia's wealthiest private companies will be forced to disclose their annual tax bill for the first time.” But that the legislation also will “shield up to 600 more companies that would have been brought under new transparency requirements.”

Labor has branded the deal “a sellout”. They had pressed for all companies with revenues of over $100 million to be affected by the reform – whereas the Greens negotiated a compromise with a threshold of of $200 million. Labor argued a compromise was not necessary – on the assumption the Government itself would have been forced to compromise before the end of the sitting of Parliament.

(Read more: http://www.smh.com.au/federal-politics/political-news/greens-deal-with-scott-morrison-on-tax-shield-sparks-labor-fury-20151203-gle9ft.html#ixzz3taKrNOA9
Follow us: @smh on Twitter | sydneymorningherald on Facebook )



Also considered recently in discussion has been the decision by the Greens several months ago to agree to another compromise - tightening means tests on Aged Pensions in order to save $2.4 billion over four years.

By contrast Labor was arguing for reform of Superannuation Concessions delivering windfall gains to some of the very most wealthy: though arguably Labor wasn’t considering a broad enough base (including the upper middle class) in order to bring in serious revenue without need for unfair austerity elsewhere.

To summarise: Shorten’s plan foreshadowed savings of $14 billion OVER TEN YEARS. But the Government is facing a deficit ballooning to over $40 billion a year ; and root and branch reform of tax is what is necessary – not only to get the deficit under control, but to pave the way for a reforming Federal Labor Government which actually improves the social wage, social insurance and social welfare by tens of billions in the context of a $1.6 trillion economy.

Again by contrast: The deal agreed to by the Greens with the Liberals had 170,000 of the most financially disadvantaged Pensioners standing to gain $30/week as of 2017; But approximately 330,000 (relatively better-off) Pensioners would see cuts through tougher means tests ; and more than double that into the future.

(See: http://www.smh.com.au/federal-politics/political-news/pension-assets-test-deal-with-greens-secures-coalitions-changes-20150616-ghplxg.html )  

The following are some excerpts regarding my thoughts: not only on this specific compromise, but on the ALP working with the Greens generally.


SL in relation to the Greens ; Is it right for the SL to Criticise ALP Policy?


At the ‘ALP Socialist Left Forum’ Group we’ve had plenty of debate on the place for criticisms of the ALP. Should criticism be considered ‘treason’ of some kind? Should we work for co-operation with the Greens – or should we fight them tooth and nail on account of the threat to several of our most talented Left MPs ; and the likelihood of declining Socialist Left influence in Caucus and Cabinet?


Nonetheless: Labor often gets it wrong on policy. For instance, we often pursue symbolic policies for appearances sake which are far from the ‘root and branch’ reform needed to serve the interests of our constituents. Shorten’s Superannuation Concession reforms are very modest , and at this rate Labor will be pressed to pursue extensive austerity if we regain government. Perhaps regressive policies such as more attacks on vulnerable groups such as Sole Parents. Or an increase in the Age of Retirement. And yet Labor’s Platform leaves the way open potentially for an expansion of progressive tax and social expenditure. Labor still has options for a genuinely progressive mandate.

If as the most significant Left formation in the country (The broad ALP Socialist Left) we do not criticise our own party's policies when our leaders get it badly wrong - then who will step into that space? There are a number of possibilities. Either groups like the Greens will step into that space ; or because of our silence the Left more broadly will be demobilised. This would especially be a threat if the Greens’ tending towards compromise marked ‘a move to the Centre’ which again would leave a space in the Left of the Australian political milieu. A new challenger on the Left of Australian politics could take a long time to re-emerge therefore ; just as it has taken decades for the Greens to establish themselves properly. This would simply assist the broad Australian Right in consolidating their hegemony.


 Don't get me wrong:... I'm all for staying and fighting within the Party. But when the Party leadership gets it badly wrong its up to us whether we vacate that (public) Left space and/or demobilise the Left - or whether we choose our battles - and publicly dissent at times – in the context of important debates – such as a much more robust winding back of superannuation concessions for the wealthy and the upper middle class. We must do this because there is the alternative of Left demobilisation. And before we know it even our own people don't know what we're supposed to be fighting for anymore... (take privatisation, tax reform, social wage and welfare expansion and reform, industrial rights and liberties etc)


Insofar as criticism is constructive we shouldn’t just tolerate criticism of Labor policy - indeed it must be encouraged.

Nonetheless, the trend towards Labor and Greens just trashing each other always seems to involve a degree of 'spin' and is not necessarily 100% honest. What we need is honest, reciprocal criticism.


 There's also the urgent question: What will WE (ie: Labor) do on Company Tax? Here we really need ALP and Greens to team up and vote down Company Tax cuts - because that is Corporate Welfare. That is business avoiding paying their share for the services and infrastructure they benefit from! So instead ordinary citizens, workers, taxpayers - are left to pick up the tab – directly or indirectly. (whether with an increased GST, or austerity elsewhere) Where does Shorten line up on this? (seriously) There are many billions at stake.


More on Greens Compromises


Regarding Greens’ compromises it must be observed: It’s the old dilemma over whether to compromise and get something 'right here right now' - or whether to hold back - in the hope of discrediting the Conservatives - and getting something much better with the next change of government. Labor has faced these dilemmas itself at times.


 For instance, the Carbon Tax was the best policy - but was politically impossible after Gillard’s commitment "There will be no Carbon Tax in a Government I lead". The Greens should have recognised this. There were other options. Like billions in annual direct public investment in renewables research and infrastructure. In a convoluted kind of way the Greens’ insistence on the Carbon Tax could even have been considered an instance of opportunism in its own right. The Greens got their policy – and it granted them prestige with their constituencies. But arguably it sealed the fate of the Labor Government. This is not to say the Greens shouldn’t press their leverage to get robust policy compromises from Labor. And arguably Julia Gillard should never have backed Labor into that corner in the first place. But direct investment in renewables research and public infrastructure would not have involved a blatant, high-profile broken promise. Of note: Labor must not back itself into a corner on ‘small government’ now either!



What Reforms must Labor and the Greens pursue now as the 2016 Federal Election approaches?

Instead of just positioning against each other with the hope of gaining an electoral advantage over largely ‘cosmetic’ policies, again Labor and the Greens should be projecting root and branch reform in any Labor Government where the Greens hold decisive sway over the cross-benches


 More specifically: Labor and the Greens need to move together to secure a minimum $35/week increase in all full pensions INDEXED upon Labor taking government.
This must include Newstart and Student Allowance. Although I've been arguing for this for years already and $35/week isn't as much as it used to be. Full indexation is crucial, and perhaps now the figure should be somewhat higher. (eg: $40/week


Also in an exchange at the ALP Socialist Left Forum Facebook Group I accepted the need for subsidies to help the elderly invest in air conditioning and heating. Increasing the Aged Pension should be part of that. Existing pensions and payments make insufficient consideration of contingencies which vulnerable Australians may be faced with. From a visit to the dentist to having to replace a washing machine – such everyday challenges can leave our most vulnerable destitute.

Some would call the Greens' compromises through 2015 opportunism. Labor would attract that claim from the Greens themselves if it was Labor who had made the compromises. The Greens are trying to shake off their reputation as a ‘protest party’ – which never has to compromise. Labor argues the Greens are about appearances re: policy protest – but are not about outcomes.



But there is the argument that some of the compromi...ses the Greens have pursued have helped the most vulnerable. Though in a way which has hardly been fair to some people who would not fairly qualify as 'rich'.

There are two sides to this. What matters is that if we get a Labor Government - and if the Greens hold the cross-benches - there will be no more need for 'compromise with the Liberals'. And in that case we should see the whole policy schema recalibrated in a way which is truly fair - and doesn't involve 'compromises' whereby one constituency (not really 'privileged' by any reasonable measure) is played off against another (truly, genuinely disadvantaged). Better to target the top 15 per cent income and wealth demographics for redistributive measures aimed at improving the lot of those on low and middle incomes ; workers and vulnerable welfare recipients.


Target 'the top 15 per cent' as it is a narrow enough constituency for redistribution to be fair ; narrow enough to be electorally viable ; and broad enough to bring in serious revenue for serious reforms...
 

The problem right now is that most in the Parliamentary Labor Party will oppose taxing the sole residence of the elderly - fair enough - but they may not support other progressive measures (as listed) necessary to repairing the welfare state, social insurance and social wage.

Ideally we should pursue a more progressive tax mix which does not necessitate the elderly being forced to sell their home towards the end of their lives when familiarity can be so important. We should hit superannuation concessions for the wealthy and the upper middle class. We should restructure the income tax mix radically. We should consolidate Company Tax and begin to gradually wind back D...ividend Imputation - which most advanced economies manage to do without. (worth over $20 billion now) Perhaps we should tax the banks. And perhaps we should tax the largest inheritances ; and introduce a Tobin Tax on financial transactions. Finally we should definitely raise the Medicare Levy - and progressively restructure it into more progressive tiers.

With this we can bring in tens of billions. We can introduce National Aged Care Social Insurance ; we can implement Medicare Dental, Physio and Optical and cut waiting lists. We can fully implement NDIS. We can implement Gonski and transform HECS into a genuinely progressive tax. We can invest billions into social and public housing, as well as infrastructure of all kinds – increasing housing supply , making housing affordable , providing transport and services to new suburbs. We can revivify Legal Aid, and we can provide Federal Funding for Local Government - to make Local Government less dependent on relatively regressive levies/council rates. And we can reform welfare, support payments and pensions and lift the most vulnerable out of poverty. Finally, we can invest in the ABC and SBS. That's what we should do ; and it doesn't necessitate driving the elderly from their homes - even if their homes are valuable. And especially if their residence is their major asset - and they are not wealthy aside from this by any reasonable measure.


In conclusion – Labor needs to settle on policies of depth and substance. Because while ‘cosmetic’ policies may win over some voters – that is not our ‘reason for being’. Labor should not be driven by the quest for government purely for its own sake: outside the context of winning deep, meaningful reforms. Before Thatcherism and the decades-long retreat of the Left there was reference to the notion of “The Forward March of Labour’. We need to reconceive of our reform trajectory. Of what comprises our ‘forward march’ on policies which reform social wage, social insurance, welfare, personal and collective liberties, the extension of democracy – and more.

And we need to establish our reform trajectory quickly and soon if we are to have the time and the opportunity to sell such a package to voters ahead of the Federal Election in 2016.

Responding to Kim Carr on the ALP's ‘Socialisation Objective’

 

Above: ALP Socialist Left Senator Kim Carr is right to take NSW Labor leader, Luke Foley to task for rejecting the ALP's 'socialisation objective'; But he is wrong in his apparent rejection on an 'extensive' public sector.

The socialisation objective is about more than nationalisation ; but extensive and strategic social ownership needs to factor into our plans and principles.

Tristan Ewins

In ‘The Age’ on August 9th 2015, Socialist Left Labor Senator Kim Carr provided a statement in defence of the ALP’s standing Socialist Objective.   That includes the ‘socialisation objective’ specifically which (originally in 1921) committed Labor to the following:

‘‘The Australian Labor Party is a democratic socialist party and has the objective of the democratic socialisation of industry, production, distribution and exchange, to the extent necessary to eliminate exploitation and other antisocial features in these fields.’’

He also relates how in 1981

“23 explanatory subparagraphs were added to it. These set out goals such as full employment, the abolition of poverty, a more equal distribution of wealth and the elimination of exploitation in the home.”

Carr places himself at odds with NSW Labor Leader Luke Foley – for whom the socialisation objective was ‘confusing’.   Foley was beginning from the assumption that socialisation means nationalisation – and that those defending it were simply engaging in obfuscation.  For Foley Labor ought ‘say what it means and mean what it says’.   If we are about ending exploitation, then in the Marxist sense this infers the abolition of wage labour.  This is important – as is the question of socialisation interpreted as nationalisation.  And we will come back to this later- to consider why the positions of both Foley and Carr are problematic.

For Kim Carr it is the more-recent explanatory paragraphs which communicate the true essence of the Party’s Socialist Objective.  Further elaboration or reformulation are thus considered not necessary.

Some commentators have argued to the effect that these ‘explanatory paragraphs’ rendered the Objective meaningless anyway.  But before proceeding it is useful to consider specifics.  Hence the following selection from that section of the ALP Platform in question:

"c) Redistribution of political and economic power so that all members of society have the opportunity to participate in the shaping and control of the institutions and relationships which determine their lives.

"d) Maintenance of and support for a competitive non-monopolistic private sector, including small business and farming, controlled and owned by Australians, operating within clear social guidelines and objectives.

"l) Equal access and rights to employment, education, information, technology, housing, health and welfare services, cultural and leisure activities and the law.

"j) The abolition of poverty, and the achievement of greater equality in the distribution of income, wealth and opportunity.

"n) Recognition and protection of fundamental political and civil rights, including freedom of expression, the press, assembly, association, conscience and religion; the right to privacy; the protection of the individual from oppression by the state; and democratic reform of the Australian legal system.

"p) Elimination of discrimination and exploitation on the grounds of class, race, sex, sexuality, religion, political affiliation, national origin, citizenship, age, disability, regional location, economic or household status.

"t) Recognition of the need to work towards achieving ecologically sustainable development.

"u) Maintenance of world peace; an independent Australian position in world affairs; the recognition of the right of all nations to self determination and independence; regional and international agreement for arms control and disarmament; the provision of economic and social aid to developing nations; a commitment to resolve international conflicts through the UN; and a recognition of the inalienable right of all people to liberty, equality, democracy and social justice."

Hence the Objective is really quite extensive and substantial, and it does not restrict itself solely to socialisation interpreted as nationalisation. Indeed it could be considered both politically liberal and democratic socialist as well in the sense of advocating universal social rights of citizenship.  The promise of moving towards equality of political and economic power suggests a radically redistributive project, but at the same time there is the important (and realistic) concession in support for a non-monopolistic, competitive private sector. 

This Objective – reformulated in 1981 to be inclusive of both the Party’s Left and Right could be interpreted after the way of Nordic social democracy, with the probable implication of supporting a comprehensive welfare state and social wage; a progressive taxation system; as well as appropriate industrial rights. But there is room for improvement.  Some of these could be spelled out more clearly and overtly. And the significance of socialisation interpreted either as occurring through the public sector – or through a more diverse ‘democratic sector’ including State Aid for co-operative and mutualist enterprise – is not elaborated upon sufficiently.

Kim Carr gives the impression that he believes Foley’s proposed Objective is “tepid” and weak – and could just as easily find a place in the Platform of the Liberal Party.  After all, who today disagrees with the principle of ‘equal opportunity’ – at least openly or ‘in theory’?  Carr gestures towards the true inequality of opportunities that persist under capitalism ; for instance the meaninglessness of any ‘freedom’ of individuals to negotiate terms in the labour market – where the only real strength of workers under these circumstances – their collective solidarity – is progressively undermined and even criminalised.  He argues that this:

“is like saying that a millionaire and a homeless person have the same freedom of choice to sleep under bridges”

And for socialists ‘equal opportunity’ must mean more than ‘meritocracy in the labour market’. As the Objective insists, it must include: “Equal access and rights to employment, education, information, technology, housing, health and welfare services, cultural and leisure activities and the law.”   Socialism implies progress towards the principle of ‘From each according to ability, to each according to need’.

Sure, the Liberals make a mockery of ‘equal opportunity’ in practice – supporting privilege in Education, and proposing deregulation where quality of education would depend upon user pays mechanisms which excluded the poor and much of the working class.  Chris Bowen has also gone a bit further, arguing for equality of outcomes in Health.  Bowen’s proposal of a ‘toothless’ National Conference; his apparent opposition to a robust mixed economy; his support for a simpler (ie: in reality less progressive) tax system –  are all disappointing. But support for real equality of opportunity in education, and crucially equality of outcomes in health - comprise a beach-head for something more progressive – and so this common ground should be capitalised upon.

Hence we desperately need to commit to a National Aged Care Insurance Scheme,  Medicare Dental, and ‘closing the gap’ on life expectancy of the mentally ill – ahead of the next Federal election.

Notably: because the Conservatives are progressively abandoning meaningful commitments to political liberty and civil rights, as well as genuine and comprehensive meritocracy through a more accessible and equitable regime of Education – that should not be taken as a signal to simply opportunistically occupy the vacated political space. Aspects of Greens policy have been depicted as ‘extreme’; whereas in reality they are closer to the legacy of Whitlam, say, than we are ourselves often in the ALP today.  We cannot accept these terms of debate ; and we cannot simply move to the Right and allow to Greens alone to occupy that political terrain. The Politics of ‘Convergence on the Centre’ are really self-defeating where it occurs on the terms of our Conservative rivals, and on the terms of an Ideological monopoly mass media.

If we are truly a democratic socialist party we must not only exist for winning elections as an end in itself.  We must be about contesting the very substance of ‘the mainstream’, progressively reshaping the discourse to shift the relative centre to the Left in keeping with our values.  Antonio Gramsci would refer to the formation of a  ‘counter-hegemonic historic bloc’ – an alliance of forces through which society’s ‘common sense’ is reconstructed as the substance of democratic socialism. Again after Gramsci this could be interpreted as a ‘war of position’ – taken in our own specific circumstances as a process of laying political siege to, and contesting the institutions of civil society and the state. Culminating in the democratisation of the State itself – so that the way is unambiguously open for ‘a democratic path’ to socialism.

Kim Carr concludes his commentary by elaborating on what socialisation means to him.  To establish this we will reproduce some of his closing comments on socialisation:

“It is not about the straw man of extensive public ownership and a centrally planned economy. But it is about public entrepreneurialism, and public investment in the forms of human endeavour that are necessary to build and sustain a democratic, just and technologically advanced society.

Socialisation is about defending a just minimum wage and fair working conditions. It is about the creation and defence of Medicare, the enhancement of a great public education system, and the construction of national infrastructure such as the Snowy Mountains Scheme and the National Broadband Network.”

While Carr’s support for public education, nation-building infrastructure and ‘public entrepreneurialism’ are encouraging, he himself appears to be conceding substantially to the neo-liberal Ideology.  That is: In the sense of implying support for ‘small government’ through rejection of an “extensive” public sector.   While Foley wants to get rid of the socialisation objective because he rejects any radical connotations, Carr seems to be implying that we sidestep or reject content associated with public ownership – content which could potentially and progressively challenge the current distribution of power and wealth under capitalism. (and hence not acceptable to capitalists)  Though perhaps Carr is open to tax reform, as well as social wage, social insurance and welfare extension – all of which are central components of a democratic socialist agenda of ‘socialisation’.  Here we could do with specifics – and policy ambition.

Few today support a Soviet model of centralised state planning.  But we should not close our eyes to the possibilities of strategically extending the public sector, and engaging in strategic instances of planning.  Neo-liberal Ideology rules out public and democratic sector expansion as well as socialisation interpreted as regulation where ‘the absolutism and prerogatives of capital’ are progressively curtailed.  (see the work of the Swedish social democratic thinker, Nils Karleby) But the old socialist Ideology aspired towards progressive nationalisation – potentially over decades.  In the 1970s socialists like Stuart Holland hoped that the ‘commanding heights’ of the economy would ultimately revert into public hands.  Today, though, we could well embrace the project of a ‘democratic mixed economy’.  

The ‘way forward’ to something along the lines of ‘socialising the commanding heights’ appears to be blocked on account of the dominant Ideology, and also because of the power of Capital to obstruct reform through destabilisation, capital strike, disinformation etc.  Indeed, this can be a corrupting influence upon democracies.  Here, while the sheer political and economic clout of the biggest transnationals is a genuine threat to democracy, working people and citizens nonetheless stand to benefit from job-creating-investment, and as consumers from various innovations in areas ranging from automotive industries to information technology.  While the scale of the transnationals is in some ways threatening – and we need to frankly recognise this - the economies of scale and competition involved can have benefits in these fields. Though there are also other problems (eg: built-in-obsolescence) which might be remediable through some form of regulation.  And global solidarity of labour is necessary to prevent the transnationals from simply exploiting the poorest and least organised workers.

And yet much of the old socialism remains instructive. Capitalism can be inefficient, unstable and wasteful. It can create conditions of exploitation and human alienation.  The expropriation of a portion of the proceeds from labour by capitalists remains morally problematic even though few on today’s Labor Left will openly discuss this. For genuinely small investors (eg: other workers) dividends may comprise a fair return in the context of making a sacrifice through deferring consumption. But in the bigger picture a portion of the value created by workers is expropriated by capitalists. Workers generally do not enjoy the full proceeds of their labours. These arguments are commonly ignored simply because the consequences are potentially radical for a Left ‘on the back foot’ in a steady (decades-long) process of liquidating its own traditions in order to ‘Converge at the Centre’. Here it was really Hawke and Keating who ‘led the way’ providing the ‘inspiration’ for Blair.   We need to retain a frank critique of capitalism even if the movement towards something better has currently stalled.

But the extension of the ‘democratic sector’ - including the important ‘subset’ of the public sector -remains important despite being at odds with the prevailing Ideology.  By ‘the democratic sector’ we refer not only to the traditional public sector, but also to a multiplicity of co-operative and mutualist forms, as well as democratic collective capital formation and other like-projects, as well as self-employment and co-determination.  These democratic economic forms and strategies can mitigate or indeed end instances of alienation and exploitation.  They can result in a more equitable distribution of wealth and the power that corresponds to this; and also give working people creative control over their labours.  

Efficiencies and reduction of cost-structures through natural public monopolies can also be capitalised upon – flowing on to the private sector and making better wages and conditions, and more progressive corporate taxation sustainable.  For instance: did we really ever need two sets of mobile telephony infrastructure?  And what price are we still paying for that duplication?  Indeed, ‘competition’ in areas such as energy, transport and communications infrastructure, water – are still deeply ‘anti-intuitive’, wasteful and unnecessary.  Hence it is possible to add to the current capitalism’s survivability while laying foundation stones for something better ‘long term’. 

An extended public sector specifically can lead to many other desirable outcomes.  Socialisation of profits via public enterprises in areas like mining, general insurance, private health insurance and banking could (in the Australian context) deliver tens of billions into welfare, infrastructure and social wage programs.  And a ‘not-for-profit’ footing could enable better pay and conditions for child care and other professionals who currently face extreme exploitation. Without getting into a long debate over the labour theory of value – public sector workers could be compensated fairly – but profits would be redistributed through the social wage, investment in infrastructure and services, and in welfare.  There would be no expropriation of surplus value, here, in the traditional capitalist sense. Though the redistribution of profits could appear to some to be diluting the return to labour. (that would not be a problem for some forms of co-operative enterprise for instance)  Government Business Enterprises and public infrastructure could also be administered in such a way as to cross-subsidise in favour of the disadvantaged ; but also to enhance competition where oligopolistic collusion would otherwise be a threat.

So indeed there are many arguments in favour of an extended public sector as part of a broader project of a ‘democratic mixed economy’.   Contra-Luke Foley - Let’s defend the Socialist Objective.  But let’s not dilute it to the point where it becomes merely token or symbolic.  Indeed let’s try and improve the Objective to make clear our aspirations for a democratic mixed economy; an expanded welfare state; a reformed tax mix and an expanded social wage.  Yet as against Kim Carr’s aversion to an ‘extensive’ public sector, strategic expansion of the public sector remains important and valid, as does the spread of other democratic forms – such as co-operative enterprise – with assistance via State Aid.  Indeed, these together could comprise a ‘multi-pronged strategy’: a long-awaited Left counter-offensive against the dominant neo-liberalism.

Both neo-liberalism and the old ‘Communism’ have demonstrably failed.  We need to reject the prevailing intellectual fetish for ‘undistorted’ markets, privatisation and small government and return to the question of a democratic mixed economy with an open mind.

Nb: Several other essays on the theme of a ‘democratic mixed economy’ can be found here:

http://democraticmixedeconomy.blogspot.com.au/2013/10/what-is-democratic-mixed-economy.html