Letters from a Labor Activist ; November/December 2016

above:  Humanity does not Live by Bread Alone ; What about Democracy and Political Literacy in our Educational Curricula?

Progressive Letters to 'The Age' and 'The Herald-Sun' ; (November/December 2016) ; Everything from ‘Public Debt Shibboleths’ to Privatisation, Defending Democracy,  The Right Protest, Education for Politically Literate and Active Citizenship, and more ; Please feel welcome to read and comment on the articles, share via Facebook and so on.

Dr Tristan Ewins

Is there a public debt crisis?  Or is the Crisis one of Private Debt?

(Debt letter One)  (Unpublished)  Regularly we are warned of the ‘immense threat’ of government debt.  But its best, here, to use the measure of ‘net debt’ which also includes revenue from government assets.  (instead of ‘gross debt’ - which does not)  For example, with the privatisation of assets like the Commonwealth Bank gross debt fell, but net debt worsened significantly.  Australian Government  net debt was recently measured around 18 per cent of GDP : approximately $285 billion in an economy around AUS $1.6 billion.  But HOUSEHOLD debt – ie: the debt owed by Australian individuals and families – is over 100% of GDP -  over $2 TRILLION.  Private debt is clearly the bigger threat. The Liberals try and offset private debt with public austerity – in health, education, welfare, infrastructure. But these areas are often more crucial to our well-being than private consumption.  So arguably we need a BIGGER social investment in these areas as opposed to cuts. We need a more balanced approach ; containing debt long term – without gutting public services and infrastructure, or destroying  jobs and growth.  And now is a good time to invest in potential income bearing (and other) government assets – on account of low interest rates.  A big investment in public housing could also make housing more affordable –  making significant inroads into private household debt.  We also need an industry policy to achieve full employment –and full time jobs for those who want them.  That could offset an ageing population without resort to measures like raising the age of retirement.

References:

http://www.natsem.canberra.edu.au/natsem-budget/natsem-pre-budget-2016-state-of-play/how-much-public-debt-do-australians-have/

https://theconversation.com/election-factcheck-has-100-billion-been-added-to-australias-national-debt-under-the-current-government-60701

(Debt letter Two) (Published) Bruce Hambour (Herald-Sun Letters, November 2016)  writes that debt is getting so out of control that welfare must be cut to rein it in. But why start by cutting the payments for some of our most vulnerable and disadvantaged Australians when there are other options?  Why not drop massive corporate tax cuts, and other tax cuts for the well off?    Why not cut back Superannuation Tax Concessions – mainly beneficial to the well-off – whom taxpayers are effectively subsidising by tens of billions every year?   Also public sector debt is actually negligible compared with private debt.  (approx. 30% of GDP compared with 200% of GDP)  The housing bubble hasn’t helped ; and what’s needed are big investments in public and social housing (to increase supply), and in infrastructure and services (to ensure quality of life).  Also Conservatives attempt to play the working poor of against the vulnerable welfare-dependent.  (divide and conquer) That’s better fixed by raising the minimum wage, and improving the social wage for the working poor.

Herald-Sun Op-Ed Describes Labor Left Opposition to Privatisation as “Extremist”.

(Published)  James Campbell (Herald-Sun, 24/11) depicts Labor Left opposition to privatization as ‘extremist’.  But what grounds are there for this opinion?   Most Australians did (and still do) oppose privatization of important government assets.  And the longest-serving Australian Liberal Prime Minister, Robert Menzies, presided over a relatively larger public sector (and more steeply progressive income taxes) than Labor governments of the 80s and 90s.  The ‘extreme’ tag is a flippant way of dismissing an argument without having to engage or justify your position.  ‘Natural public monopolies’ (eg: in water, communications, energy) would reduce costs for the broader economy.  And Medibank Private’s recent privatization saw private health insurance costs rise as the newly-privatizated corporation arguably began abusing its market power.   The Commonwealth Bank can also make profits close to $10 billion now.  That means our net government debt position is much worse now because of its privatization.  Since its privatization there have also been problems with fees, and the quality of services for regions and financially disadvantaged customers.

Herald-Sun letter calls for ‘Technocracy’ in place of Democracy

(Unpublished)   Simon Hammond (Herald-Sun, 26/11) claims democracy is to blame for weak and indecisive government .  Instead he suggests a kind of ‘government of experts’. (a technocracy) But the problem is not democracy ; it is particular practices such as poll and focus-group driven politics ; and ‘gotcha’ politics’ which neglect the substance of policy choices.   Another problem is the major parties all aiming for ‘the centre ground’ ; not standing up for their beliefs. (‘Convergence politics’)   That means weaker pluralism. That is, less choice.  In fact we need a stronger democracy.  A free multi-party system is meant to ensure scrutiny of public policy and social issues ; but often media neglect the substance ; and politicians respond by playing to shallow agendas.  We need to transform our society ; which could be achieved partly through educational curricula for active and politically literate citizenship ; which is ideologically inclusive and  encourages students to think about – and stand up for - their rights and interests. 

Responding to Andrew Bolt on the causes of the Trump Victory

(Unpublished)  Andrew Bolt calls the Trump election victory “a revolt against the Left’s arrogance” (Herald-Sun, 10/11). But reality is more complex than this.  A neo-liberal consensus  - a particular INTERPRETATION of ‘globalisation’ - has prevailed around much of the world, facilitated by BOTH the parties of the Right and of the ostensible Centre-Left. Working class people who had lost their identity, as well as their economic and social security with the destruction of their jobs – gravitated towards a promise to restore America’s industrial base.   Trump’s old school protectionism might not be the answer, but Nordic-style, targeted industry policy might serve better.   Policies which promote high value-added manufacturing alongside Research and Development, and promotion of information and communications technology industrial development.   The US Left needs to actively court the working class – including white males – with policies that offer the respect and security which could be key to building a broad electoral bloc, and rolling back Trump’s support base.

Why Scott Morrisson and the Liberals are Wrong on Company Tax Cuts

(to both the Herald-Sun and The Age ; Unpublished)  Today (28/11)  it was distressing to see Treasurer Scott Morrison in Question Time defending massive cuts to Company Tax.   He referred to Trump’s objective of a 15% corporate rate, and suggested Australia needs to be ‘competitive’.  But the United States had enjoyed a maximum corporate rate of 35% for many years under both Republican and Democrat Administrations.  Elsewhere, the reality is that high quality social services, education, infrastructure are ‘pull factors’ for investment as well.   And this needs to be paid for somehow.  The Conservative approach is ‘corporate welfare’.  That is: the corporate rate is cut - but workers, pensioners, families ‘pay the price’ one way another.  Through unfair ‘replacement taxes’ like the GST , or through a neglect of services and infrastructure which is arguably bad for investment anyway. We need international agreement to stop ‘the race to the bottom’ in corporate taxation.  Without this the economy will suffer anyway – as ‘corporate welfare’ takes income away from the very workers  whose consumption supports the domestic economy. 

Feminist Revolution must take account of class ; must be based on Mutual Respect and Empathy

(Unpublished)  Trish Thompson (‘The Age’, letters;  30/11) reminds us of “the privileges of being a white heterosexual male”.  But she makes no mention of social class .  That determines our quality of life ; where our kids go to school ; often the quality of our diet and health care; whether we can pay the bills and put a roof over our heads ; what else we can enjoy outside of work.  Other factors include whether or not our work is fulfilling ; and what economic (and hence political) power we have.  Why is class usually forgotten today ; or otherwise relegated to a subordinate position?  Age, body image and disability are also relatively neglected. We are in the midst of what might be called a feminist revolution.  What’s at stake is whether or not that revolution is broadened in pursuit of genuine mutual solidarity and liberation.  Or whether there is a kind of ‘turning of the tables’.  Many men are reacting against discourse they see as inferring ‘masculinity’ and male sexuality are ‘essentially bad’.   Without mutual respect and empathy there will be a reaction and the feminist revolution might fail.

Working Class Men don’t have ‘a lot to gain’ from Deindustrialisation and the Consequence is Unemployment and Poverty

(Unpublished)  Jacqueline Maley  (‘The Age’, 3/12/16)  writes as if men have more to gain than lose through deindustrialisation. The reality, though, is that older skilled manufacturing workers will not find replacement work making use of their skill sets.  And service industry jobs are unlikely to make up for the 50,000 jobs lost in the car industry and supporting industries .  The notion that when men take up service industry jobs that these will rise in stature is questionable.   The balance of trade is another associated concern.  It is a function of capitalism more so than patriarchy that ‘unprofitable’ service jobs are devalued. For example, a better deal for both aged care workers AND residents might ‘eat into corporate profits’ – directly (eg: through higher corporate tax) or indirectly (with a reduction in private consumption power with higher income or consumption  taxes). That said we do need to ‘valorise’ caring (often ‘feminised’) professions.   We need a re-regulation of the most-highly-exploited end of the labour market.  To reform the tax mix and extend the social wage.  Resistance to the extension and improvement of social services is most likely to come from capitalists and their advocates in the so-called ‘political class’ rather than from working class men.

We Must be unambiguous on the Right to Protest ; and stand against even more regressive User-Pays in Tertiary Education

(Part-Published)  David Penberthy  (Herald-Sun 4/12/16) condemns the protestors who disrupted parliament the other day as ‘ratbags’. He goes on to support user-pays in Higher Education, arguing ‘Why should blue collar workers pay for someone’s Law degree?”   In response ; democracies must defend liberal and democratic rights, including speech, association and assembly.  But arguably a mature democracy – which feels secure in itself - accepts there will be occasions where differences of principle become so steep that accommodation must be made for civil disobedience as well.  Such flexibility helps define us as a genuinely *liberal* democracy.   Furthermore: Penberthy’s defence of user pays in Higher Education ignores the fact that were a greater portion of education costs shouldered through income and corporate taxes – then roughly people and interests would pay in proportion to the financial benefit gained.  And if we wanted to reform the Higher Education Contribution Scheme (HECS)  to make it fairer, then we might raise repayment thresholds.  There are many former students on less than the average wage who are forced to repay loans that bear no relation to their actual incomes.  Repayment thresholds have fallen relative to the average wage: and that is unfair.

 

Why Political Literacy, and encouraging Active Citizenship must Have Their Place in Educational Curricula ‘in a strong democracy’

(Unpublished)  There is a developing view (Herald-Sun Editorial, ‘Teach don’t Preach’ , 7/12/16) that ‘politics should be kept out of the classroom’; and that means not only that teachers ‘should not be advocating causes’ – but also that there should be a ‘back to basics’ movement emphasising science and maths.  The problem with this is that education needs to be for life – and while maths and science have their place,  education for politically literate and active citizenship can strengthen our democracy and empower our citizenry to work for their beliefs, rights and interests. To achieve bipartisanship – there needs to be a reformed National Curriculum – which exposes students to the ideas of BOTH the Democratic Left and the Democratic Right, while also imparting an understanding of other ideologies.  As the saying goes ‘man does not live by bread alone’.   An active and informed democracy should have bipartisan support across the Democratic Right and the Democratic Left.

(Unpublished)   Greg Byrne (Herald-Sun, 10/12/16) refers to  education about “gender, ethnicity and class” as “nonsense” that has nothing to do with finding jobs.   But the Humanities and Social Sciences involve research and writing skills ; the construction of detailed arguments , and evaluating complex information.  Also humanity ‘does not live by bread alone’.  (ie:  the labour market and work)  A stronger democracy (based on understanding and participation) rests on citizens’ political literacy (understanding political ideologies, values, movements, processes) and on their powers of expression.   The Humanities and Social Sciences drive us to ask fundamental questions about the human condition ; about ethics ; and thinking critically about democracy, economy and society.   In a strong democracy we must be empowered to make informed choices as citizens – regardless of whether we perceive ourselves as being of  “the Right” or “The Left”.  That means imagining alternatives to current social and economic arrangements in pursuit of ‘The Good Society’. Here,  assessing the balance of wealth, power  and opportunity in society is a legitimate question.

From the place of socialism in modern Australian politics, to 'Record High Taxes', and Police Powers

 

 

 

above:  In the Herald-Sun (4/6/16) Joe Hildebrand laments the decline of  'Third Way Centrism' and the rise of the 'margins' in European (and to his mind probably Australian) politics.  But democracy must mean pluralism and real choices.  In this the real history of socialism and Marxism must be kept in mind. Regardless of the horrors of Stalinism, it is time to reclaim the traditions of the Democratic Left.

 

LETTERS LATE MAY AND EARLY JUNE:    The following are a series of letters written to ‘The Herald-Sun’ and ‘The Age’ over the course of late May and early June 2016.  The issues discussed include the place of socialism, liberalism and Marxism in Australia.  As well as police powers, and whether or not Australia faces ‘record high taxes’.  At the time of posting only one of the letters had been published – in The Age. (though edited for length)

 

(Published) “Waleed Aly (The Age ; 26/6) regrets the marginalisation of political ideologies like socialism and liberalism, and the rise of disengagement, cynicism, right-wing populism.  But Sanders in the US and Corbyn in the UK show that with the distance of time the damage caused to the democratic Left by the example of Stalinist totalitarianism is finally being overcome.  Australia needs progressive leadership – articulating the best of political and social liberalism, and economic socialism.  There is a constituency waiting for the right leadership: articulating ideas of social justice and compassion.  For Labor to articulate a vision based on provision for human need through social insurance, the social wage, social welfare, the democratic mixed economy, as well as labour market regulation and industrial/civil liberties.  Shorten has moved in the right direction with very modest proposals to reform tax. Though his back-down on crucial Aged Care funding suggests Labor is too sensitive to empty claims of ‘over-spending’:  In fact Labor has a record of bipartisanship on ‘small government’.  In fact our taxes are only approximately HALF of Sweden’s’! A new Labor government needs to be more ambitious fully-funding perhaps $40 billion (or 2.5% of GDP) in new progressive commitments without austerity elsewhere.

 

(NOT PUBLISHED)  Democracy must mean a real choice! ; Joe Hilebrand (Herald Sun 4/5/16) laments the decline of ‘Third Way Centrism’ and the rise of the ‘fringes’, with Marxist voices finding a place in the public sphere.  A few points, though. First, a true democracy finds itself in pluralism.  That is: if voters do not have real choices on the democratic Left and on the democratic Right then the meaning of those choices is diminished. Secondly, fear of ‘Marxism’ in Australia ought not be overstated.  Labor has moved marginally Left of Centre – but only marginally.  Its reform agenda is modest.  Finally, we could do to remember that while Marxism was crudely distorted under totalitarian Stalinism, that it nonetheless began as a democratic movement. Indeed it was one of the first social movements to propose free, universal and equal suffrage (ie: votes for all adult men and women) from the late 1840s and into the early 20^th Century.  Those who remain true to Marxism’s democratic roots would seek “a democratic road to socialism”, with an important place for parliamentary democracy.  As such today’s democratic Left – partly inspired by Marxist traditions – is one of the real, substantial choices Australians should enjoy, informed by a vision of social and economic equality and democracy.  

(NOT PUBLISHED)  (late May 2106)  The Herald-Sun has been depicting Labor as ‘irresponsible big spenders.’ But taxes have hovered around 25% of GDP across BOTH Labor and Liberal governments for many years now. In fact both Labor and Liberal have maintained a regime of ‘small government’, and any Australian government would need to double spending by approximately $400 BILLION a year to reach Swedish levels of expenditure! (ie:  at approx. 50% of GDP)  In fact, if we want to INVEST in education, health, aged care, transport and communications infrastructure, then we need more progressive tax and higher spending. The alternative is that our services and infrastructure will decay. People will suffer ; and so will the economy.  To provide a sense of proportion: Labor’s proposed changes to Capital Gains Tax and Negative Gearing will save only $7 billion a year.  But Malcolm Turnbull’s approach of cutting Company Tax by $50 billion over ten years cannot but result in a massive hit to Education and Health, services and infrastructure.  At the same time it could make any return to surplus impossible.  (once the tax cut reaches its full amount it will cost the Budget more over time)

 

(NOT PUBLISHED)  (Late May 2016)  The Herald-Sun AGAIN publishes information to the effect that cuts must be made “to avoid record high taxes”. (HS 28/5, p 9)  What the Herald-Sun does NOT publicise is the fact that for decades there has been bipartisan commitment from the ALP and Liberals to holding taxes down as a proportion of GDP.  Both ALP and the Liberals have kept taxes down so far that we are one of the lowest taxing countries in the OECD.  We would need to raise spending by $400 BILLION/year to match Sweden for example!  Instead Shorten is proposing modest Capital Gains Tax and Negative Gearing changes that will bring in only $7 billion annually.  The idea of ‘record high taxes’ appears ludicrous in light of all this! 

But without higher levels of fair taxation we will ALL pay more through user pays. User pays for roads. The end of bulk billing and Medicare.   $30,000 a year to send your kids to private schools because the public system is neglected.  Working class people forced to sell the family home to access an aged care system which is grossly under-resourced and understaffed.  This is the price we will all pay for lower taxes!

(nb: DEAR Editor - You keep publishing information to the effect we are faced with the prospect of 'record high taxes' ;  This verges on misinformation when put in context.  It is only reasonable during an election campaign to give significant space to 'the other side of the story'. Not just my own critique ; But a wide range of respectable opinion which would question the notion we are 'heavily over-taxed' ; or that Labor is 'high taxing and high spending' when compared with other governments ; or even with the  Liberal Party itself)

(NOT PUBLISHED)  A Sense of proportion on Company Tax

(Herald-Sun Early June)   In his letter John Morrissey argues  that Australia’s Company Tax regime is “uncompetitive”.   Yet the United States’ Federal rate of Company Tax is 35% ; and in some states goes higher than 39%.  The problem with lower Company Tax is that there isn’t the money left over for infrastructure and education. (that is, without ‘corporate welfare’. ie: workers/taxpayers ‘picking up the tab’ for the services and infrastructure corporations use)  Our Company Tax regime is not ‘uncompetitive’ when compared with the United States itself, and top quality infrastructure and a skilled workforce (paid for by tax!) will attract more of the right kind of investment. Australia also has one of the lowest overall levels of tax in the OECD – at approx. 25% - compared with 50% in Sweden.  To get a sense of proportion: Shorten’s $7 billion of tax reforms re: Negative Gearing and Capital Gains Tax Concessions accounts for less than half a percent of GDP.   A massive $400 billion would be necessary to match Sweden and provide a Nordic-style Welfare State. So keep a sense of proportion when talking about tax in Australia   (source:  Wikipedia)

(NOT PUBLISHED)   Police Powers

The Herald-Sun has been running hard on the issue of Police “move on” powers, and has given voice to those within the force who want a return of those powers.  A couple of points.  Firstly, the role of the Police is to enforce the laws of the day rather than to lobby the government of the day.  The police as such should not be politicised like that against civil liberties which many of us cherish as part of our liberal society.  Secondly, our civil liberties are too valuable to sacrifice in response to the actions of a couple of dozen of people – perhaps including provocateurs.  There are already laws dealing with those who engage in violent behaviour.  But we should be wary of the ‘heavy hand’ where it restricts rights of assembly, association and speech – or even civil disobedience.  Neither should civil liberties be curtailed because they are an ‘inconvenience’ to some.  This is the SUBSTANCE of the liberties and rights we are regularly reminded that our men and women fought for in WWII.  Rights and liberties should not be sacrificed for a headline.