Freedom and Mutual Respect - Letters for October 2016

above:  The Herald-Sun commonly questions the right to protest , but doesn't question its own assumptions re: the availability of work , or the right to refuse exploitative employmentThe following are a series of progressive letters sent to 'The Age', 'The Herald Sun' and 'The Australian' during October 2016.  The clear majority were not published.  But I am hoping they spark debate here.  
Topics include:

'Benefits and Drawbacks of Globalisation'

'A congestion tax for Melbourne?' 

'In a similar vein:  Immigration, Tax and Infrastructure'

'Refuting Double Standards on Tolerance while Promoting real Pluralism and Freedom'

'Engaging with Feminism on the Complexity of Intersectionality and Privilege'

'Gender, Sexuality and Mutual Respect and Consideration' 

'Refuting the Herald-Sun Again on 'Welfare Shaming'

'Refuting the Herald-Sun Again: Misleading Characterisations on the Unemployed'

 

Dr Tristan Ewins

Benefits and Drawbacks of Globalisation

Jeremy Francis (3/10) observes the benefits of globalisation ; criticising the double standards of Conservatives . He compares free trade with the defence of “strong borders” ; limiting the free movement of people – punishing and indeed criminalising refugees. But globalisation is too complex and multi-faceted for progressives to simply be ‘for’ or ‘against’ it.  Cultural exchange and engagement is arguably a good thing ; enriching cultures and acting as a check on abuse of power by particular nation states.  But the ‘inverse side’ of globalisation is the ‘free movement of capital’ .  Agreements such as the Trans-Pacific Partnership (TPP) are deployed to break down all barriers which would prevent the exploitation of every potential market by the transnational corporations.  This kind of ‘free movement of capital’ disciplines labour, compelling states to provide corporate welfare.  It also acts as a barrier to ‘natural public monopolies’ in diverse areas including water, energy, communications and so on.  Yet such natural public monopolies could drive efficiencies and fairness in the Australian (and other) economies.   The TPP might  also arguably prevent ‘market-distorting’ economic democracy policies such as state support for co-operative enterprise. (nb: that is a criticism of the TPP not an endorsement)  Again: Globalisation is just too complex to simply be ‘for’ or ‘against’ it.

A Congestion Tax for Melbourne?

Daniel Andrews and the Liberals as well have quickly ruled out any congestion tax. (in the state of Victoria in Australia) But there are things we should keep in mind. Taxes have been falling and becoming less progressive for some time.  The Conservatives especially wear that as ‘a badge of honour’.  Before the most recent ALP National Conference Labor also considered holding taxes down as non –negotiable.  But if we don’t provide infrastructure and services through progressive taxes (which tax target the wealthy more) – then we must pay in other ways.  A ‘congestion tax’ is not especially progressive ; but would at least promote the use of public transport , taking pressure from our roads.  Also experience has shown infrastructure privatisation (eg: of roads) can actually stymie possible competition – as governments guarantee profits – shutting down alternatives while consumers pay.  Privatised ‘cost structures’ also include dividends and corporate salaries.  As a matter of fact consumers get a much better deal paying for infrastructure in their capacity as taxpayers than they ever will as atomised consumers in a ‘market’ which involves nepotism and monopolism.  And progressively structured tax can ensure ‘a fair go’ for all.

 In a similar vein:  Immigration, Tax and Infrastructure

Tom Elliot (HS 7/10) takes aim at immigration to explain the failure of infrastructure and services to keep up with population. There is an element of truth that there are logistical limits to how swiftly migration can proceed without running into such problems.  But there’s another side to this.  Cumulative migration creates ‘economies of scale’ in areas like the public service and Defence.  That is: it becomes possible to finance these for a proportionately smaller amount of resources.  The most significant problem we have with infrastructure is that the tax take has been cut unsustainably by Liberal and Labor governments alike for over 30 years.  (though Labor might be beginning to realise things must change) This situation means ‘corporate and middle/upper class welfare’ which average workers and vulnerable pensioners are now expected to pay for. Limited resources and Ideological opposition to debt financing (even when interest rates are so low!) also means roads, communications infrastructure etc are privatised. Consumers end up forking out more for their services and infrastructure because they must pay for marketing, executive salaries, profits and dividends – that go with privatisation. Taxes need to rise – but they must rise fairly.  Increasing the GST is not the answer.


Refuting Double Standards on Tolerance while Promoting real Pluralism and Freedom

With regard to Rita Panahi’s recent Op-Ed in the Herald-Sun ‘Students who Refuse to Learn Tolerance’  (10/10/16) there are a number of observations to be made.  Personally I am sympathetic to some of the ideas of the radical Leftist democrat, Chantal Mouffe- who has argued 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.”

Mouffe justifies this on the basis that pluralism (a genuine variety of viewpoints) is necessary for democracy to function effectively.  And that we ought respect each other as human beings. 

How refreshing this is in light of the brutality that passes for modern politics. (which are often ‘the politics of personal destruction’)

Democracy demands informed choice. The problem, though, is that much of the monopoly mass media in this country does not promote ‘a level playing field of ideas’ , or ‘tolerance’ of perspectives that diverge from dominant right-wing narratives.  Concentration of ownership doesn’t help.  If we are to argue for a stronger (and inclusive) pluralism in our universities – we must apply the same principles to the broader ‘public sphere’.

(nb: though the narrative of 'left elites in universities' is dubious anyway - when you consider the hegemony of neo-liberal perspectives in Economics faculties for example ; and attacks on the Humanities and Social Sciences)

References – see: http://pavilionmagazine.org/chantal-mouffe-agonistic-democracy-and-radical-politics/

 

 

above: 'body shaming', and body image expectations increasingly affect both women and men....

 

 

Engaging with Feminism on the Complexity of Intersectionality and Privilege 

‘The Australian’ (14/10) reports school curricula content which emphasises ‘male privilege’ with a tone of apparent concern.  But promoting a debate on different forms of privilege in our society ought not be a worry if only the curricula is rigorous and inclusive of critical perspectives.  For instance, the most advanced forms of what is referred to as ‘intersectionality’ theory emphasise the influence of class, gender, sexuality, body image, age, ‘race’,  disability, ethnicity, religion – where individuals experience disadvantage or privilege to different degrees on the basis of individual and particular circumstances.  So a ‘white male’ who comes from a background of socio-economic disadvantage – who does not comprise the ‘ideal’ male body type promoted in popular culture ; who does not enjoy the opportunity for higher education – may be less privileged than a woman who is educated, economically comfortable, and attractive according to popular standards.  But definitely, there is a long history of male dominance of the public sphere and  sport ; devaluation of ‘feminised’ professions ; exploitation of women in the home ; and so on.  (which needs to be challenged) We need ‘critical/active’ curricula which encourage ‘political literacy’ ; informed and active citizenship ; on the basis of a robust, far-reaching and inclusive pluralism.

 Gender, Sexuality and Mutual Respect and Consideration

The Herald-Sun reports that women are “victims of sexual attention” (16/10/16). A couple of points are important, here, though.  Firstly, ‘objectification’ increasingly affects men, also.  And men are also increasingly victims of unrealistic physical expectations around body image.  Secondly, we need to be careful we don’t portray male sexuality as ‘essentially bad’.  It is natural for people to feel and express attraction for each other. The question is ‘where to draw the line’ so as to be considerate and respectful as well.  And that cuts across gender lines.   It includes how women and men approach each other when they are sexually interested.  It also includes how we reject a person’s advances if we are not interested.  (ie: kindly and respectfully if possible)   There are also power relations based on physical expectations and body image which cut across gender lines. The question ought be: “how would I like to be treated were I in the other person’s shoes?”

 Refuting the Herald-Sun Again on 'Welfare Shaming'

The Herald-Sun (16/10/16)  reports that welfare-dependency figures are “shocking”.  But Disability pensioners, Carers and the Unemployed should not be ‘shamed’.  Carers save the public hundreds of millions of dollars by providing care and support for pittance that otherwise would cost the state a fortune. If we do not value their work just because it is not part of the ‘market sector’ then that itself says something  disturbing about our priorities.  Meanwhile those with a mental illness – who are commonly looked upon as ‘not-really-disabled’ can expect a reduced life-expectancy of 16 years – or 25 years for those with Schizophrenia. Who would ‘choose’ to be in that position?  Finally, research shows there are roughly five job-seekers for every position.  Were the government serious it would develop an industry policy to create real long term jobs – matched to peoples skills. (as some Nordic countries have tried)  Instead it tolerates an unemployment rate of around 6 per cent (much more if you include those who have given up the search) , and also ‘massive under-employment’ for people looking for full-time, secure work.  Because ‘Ideologically’ it cannot bring itself to support ‘economic intervention’.

References:  http://theconversation.com/when-job-seekers-outnumber-jobs-5-to-1-punitive-policy-is-harmful-28839

https://www.laborherald.com.au/health/more-action-fewer-words-needed-on-mental-health/

http://evatt.org.au/papers/northern-lights.html

 

Refuting the Herald-Sun Again: Misleading Characterisations on the Unemployed

The Herald-Sun (19/10/16)  proclaims on its front page:“70% of arrested meth users supported by your taxes” and also: “Dole Blown on Ice.”  While the apparent connection between Ice addiction and crime is alarming, the headline was irresponsible for several reasons.   Firstly, for those who don’t read the article thoroughly there may be the utterly false assumption that most Newstart recipients are ice addicts. In fact there is no proof of anything like this.  .Secondly: ice addicts need help overcoming their addiction. Yes there must be compulsory rehabilitation programs. But a purely punitive approach could lead to a downward spiral of desperation and crime.  It seems more than an accident that the headline coincides  with the Liberal Government’s attempt to wind back benefits such as Newstart, the Disability Support Pension, the Carers’ Allowance, and so on.  To ‘make room’ in the Budget to accommodate corporate tax cuts.  And hence to demonise and vilify these people.

Abbott in a ‘Breach of Trust’ on the Budget

But is Shorten ‘backing Labor into a corner’ on future tax and social welfare reform?

 

 

Above:  Shorten in the Red Tie, Abbott in the Blue Tie -

But what's the substance come Budget-time?

Tristan Ewins

Tony Abbott is coming under increasing pressure with regard his proposed tax measures as well as his overall agenda of austerity.    The Sydney Morning Herald observed the following proposals under consideration by Abbott for the 2014-15 Federal Budget.  (Some comprised very probable items for the May Budget - following the “Commission of Audit’; others might be considered ‘longer term aspirations’ for the sake of an Ideological commitment to ‘small government’.  Some may even be rejected as ‘too hard-line’ to be ‘electorally viable’)

·         Firstly there is Abbott’s ‘debt levy’ impacting on those on incomes over $80,000

 

·          Attacks on universal health-care, with  extra upfront payments for those visiting a GP, or a Hospital emergency department

 

·         Cuts in the Aged and Disability Pensions, and also to Newstart – a more austere formula for pensioners; but also cuts in eligibility;  (Also there is talk of ‘slowing’ NDIS implementation - a cut by another name)

 

·         Phasing in 70 as the age of retirement, with the family home included in an assets test – even where such assets are way below average property values….

 

·         Big increases in university fees – but also reductions in repayment thresholds – so poorer graduates are put under extreme financial strain even where there is not a proportionate financial benefit stemming from their education

 

·         Massive cuts in the minimum wage; moving towards a permanent stratum of ‘working poor’; a divided Australia similar to the United States -  where middle class lifestyles rest partly on intensifying exploitation or the poor and vulnerable

 

·         Forcing the young unemployed (25 and under) from the austere ‘Newstart’ and onto the even more austere “Youth Allowance”.  (approx $207/week for those living away from home)  (Even more severe changes appear to have been dropped: changes which would have forced young unemployed to move house to find work – even where ‘live at home’ was the only way of ‘making ends meet’ for the barest necessities)  (‘The Age’, May 4^th, p 13)

 

·         Road tolls (effectively flat ‘user pays’ mechanism) – In my opinion probably leading to further extensive privatisation of transport infrastructure (rail, road etc)

 

·         Privatisation of what few federal assets remain:  “Snowy-Hydro, the Australian Submarine Corporation, Defence Housing, Australian Rail Track Corporation, Australia Post, Medibank, the Royal Mint and the National Broadband Network.”  (Where infrastructure and central government functions are concerned these will likely be leased back to the Australian people – but at enormous financial cost – revealing the privatisation agenda as essentially Ideological – with the public fleeced in the final analysis)

 

·         Industry Assistance cut in areas like the auto industry.  (We already know this may ‘flow on’ with a cost of around 50,000 Jobs)

(Read more: http://www.smh.com.au/federal-politics/political-news/pensioners-health-family-payments-face-cuts-under-abbott-governments-commission-of-audit-report-20140501-zr2j3.html#ixzz30iDeWA00  )

Importantly: Howard era tax cuts went well into the tens of billions.  ‘The Australian’ observed how in the dying days of the Howard/Costello government $34 billion in tax cuts were promised – and then matched by Rudd Labor.   Even the usually-biased ‘Australian’ noted the impact this had upon the Federal deficit. 

‘The Australian’ also noted more recently how  the final 2013-14 Labor Federal Budget  “would [have been]  in surplus by at least $25 billion, with an estimated $40 billion in extra revenue, if income tax cuts introduced between 2005-2008 had not been put into place.”

(Wayne Swan would have made his budget surplus by a country mile were it not for his own insistence on ‘small government’)   

The consequence of these unsustainable tax cuts was a Labor Government that largely ‘trod water’ when it came to overall progressive reform of welfare and of the social wage.   Restructuring of income tax, improvements in pensions, and subsidies for disadvantaged workers (eg: in aged care) – were important exceptions.  And Rudd Labor deserves credit for its response to the Global Financial Crisis; with its timely investment in infrastructure.  Yet there were also attacks – such as cuts to Sole Parent pensions.  And implementation of Gonski and the NDIS were committed to ‘into the future’ at a time when Labor seemed bound to lose office in any case.  Labor did ‘put Abbott on the spot’ – pressuring him to commit to these popular polices.  But now it appears Abbott never had any intention of keeping his promises.

Peter Martin in ‘The Age’ explains that ‘Net Debt’ is now set to peak at 16 per cent of GDP or about $280 billion.  The consequence of this is that 2.2 per cent of GDP must be devoted to servicing that debt : or about $9 billion a year.   (The Age, May 4^th, pp 29-29) 

To clarify, according to the Federal Parliamentary Library:  

“net debt is the sum of all liabilities (gross debt) of an organisation, less their respective financial assets (cash and other liquid assets).”

To get this in perspective Australian Gross Domestic Product is now worth over  US $1.5 TRILLION; and by comparison Japanese ‘general government debt’  is over 200% of GDP; and US ‘general government debt’ at over 100% GDP.   

There are a number of factors worth considering amidst the panic and deception surrounding the issue of government debt:

a)       Lower gross debt under Howard/Costello needs to be considered alongside greatly reduced government income and income bearing assets – the cost of unsustainable tax cuts, upper middle class welfare, and privatisations

 

b)      We need to consider our capacity to SERVICE the debt; and the ‘trade off’ from public debt compared with greater productivity which would flow from public investment in infrastructure, education and the like. 

 

c)      The Liberals attempt to compare the Federal Budget with household budgets. And yet those families who can still afford it (since the Howard era housing bubble) need to make long term investments in the family home; servicing and repaying debt in a sustainable fashion over decades.  Families ‘having a roof over their heads’ is a fairly un-negotiable need.  By comparison, if governments fail to invest over the long term in infrastructure and education – the cost to the economy (and to real people) is greater than had those governments ‘opted out’ in order to cut debt.  And if the private sector is brought in ‘to pick up the slack’ – the cost to the Australian people as private consumers is greater than had they ‘collectively consumed’ infrastructure and services via progressive tax.   To clarify: there are additional private sector costs such as profit margins, marketing, executive salaries and a higher cost of borrowing

 

d)      Finally: issuing government bonds over the long term is arguably a fairer way of financing major public infrastructure – as the cost can be staggered over several generations  with those who will benefit in the future paying their fair share.

All these facts combined also reveal the falsehood of our supposed ‘economic crisis’ and insincere cries that we must cut radically in order to ‘live within our means.’   

But there ARE alternatives.

If the regressive subsidies for wealthy retirees via the Superannuation Concessions regime are taken into account; and if unsustainable tax cuts flowing largely to the wealthy and the upper middle class are considered;  it becomes clear that Australia has the means to provide for the Aged and the disabled without vicious austerity. That is: without attempts to whip up resentment against vulnerable welfare recipients. 

GetUp! has observed that over $15 billion in superannuation concessions go to the “richest ten per cent”;  and arguably even more if we consider the upper middle class.  

And according to the Sydney Morning Herald the overall  “Commonwealth bill for [superannuation] concessions is projected to rise at a staggering 12 per cent annually to be $50.7 billion in 2016-17.  “

On the basis of the figures already considered: progressively raising government revenue to pre-Howard levels (as a proportion of GDP); and winding back regressive superannuation concessions alone could claw back well over $50 billion.   From those measures alone, the Federal government could meet increasing demands in future decades on health, welfare and aged care .   It could also meet the cost of providing key infrastructure and social services publicly – without the extra (regressively structured) costs on private consumers that flow from privatization.  

There are several areas of urgent need which will certainly be neglected should the Abbott administration continue to ruthlessly pursue its Ideological ‘small government’ agenda:

·         Roads, rail (including Fast Rail), and other public transport

 

·         Better funded State schools; greater Tertiary educational opportunity; make HECS fairer by raising rather than lowering the repayment threshold

 

·         Better resourced public hospitals, universal health care with comprehensive Medicare dental and improved mental health facilities and services

 

·         National Disability Insurance, and National Aged Care Insurance

 

·         A National Broadband Network ‘to last the long term’ instead of a ‘second best’ option

 

·         Pensions maintained without cutting payments and eligibility for vulnerable Australians; and without regressive assets tests that include ‘the family home’ even when it is roughly equal to or lower than average property values

 

·         Free burials or cremations to save families unfair costs and stress when they are grieving for their loved ones

 

·         massive investment in public housing to increase supply – finally correcting the Howard-era bubble and making housing accessible and affordable for more Australians again

 

·         Continue to invest in renewable energy for Australia’s future – and for the planet;  the Clean Energy Finance Corporation is not a ‘drag on the Budget’ anyway – and reported a profit of 7 per cent

 

·         Invest in pure and applied scientific research; for example into a cure for dementia
 

Abbott has broken faith with the Australian people.   And unlike with Julia Gillard, he has broken that faith without the Greens ‘holding him over a barrel’ lest he lose Government.  Just as Gillard was hounded until the very end on her carbon tax promise – Labor needs to ensure Abbott – and the Australian people – never forget this broken promise.

The Government’s plans to raise taxation slightly for the upper middle class and the wealthy while ‘coming down like a ton of bricks’ against welfare recipients is also offensive. 

Oscar Wilde once said: “To recommend thrift to the poor is both grotesque and insulting. It is like advising a man who is starving to eat less.” 

He could just as well have been speaking to Abbott, Hockey or Cormann. 

A wealthy taxpayer might barely notice a marginal increase in tax.  But for the poor and vulnerable the impact of welfare austerity would be crushing.

But Shorten’s response to the Government’s plans is also very disappointing.

He has been quoted as arguing:

“Increasing taxes on working class and middle class Australians is a terrible mistake and people will not forgive Mr Abbott for breaking this very big promise to increase taxes.”

Again: Abbott must be held accountable for the breach of trust. 

But Shorten’s apparent opposition to any increase of tax on the middle class is also deeply concerning.  Yes, removing superannuation concessions from the most wealthy could save  over $15 billion.  But a more ambitious program of welfare, infrastructure and social wage expansion would necessitate a broader base.   And over the longer term even ‘treading water’ on welfare and social wage provision would require a proportionate increase in tax.   The ‘good news’, however, is that tax increases on the middle class don’t have to be too severe – because of that broader base.

Labor should never have abandoned its support for a retirement age of 65. Arguably for retirees there are ‘quality of life’ issues that go beyond the drive to extract more revenue and press ever-growing consumption.   Under these circumstances the middle class would have to shoulder part of the responsibility for making Australia a truly ‘Good Society’.   If Shorten does not take account of this the Greens most likely will.  And Labor will progressively ‘lose ground’ to the Greens ‘on their Left Flank’; while floundering in its attempts to inspire a rush in membership levels and activity.

All said, though, it is the austerity rather than the tax measures which are the most concerning aspect of the Conservative agenda in Australia.  The tax measures on their own could provide a ‘silver lining’.  Some debt is arguably necessary to spread the cost of infrastructure over generations.  But cutting debt servicing costs in half could be workable, and arguably see all that money  saved (approx. $4.5 billion) redirected every year toward the most vulnerable and needy.  For instance: for those in need of Aged Care.

With Hockey’s priorities, reduced debt servicing costs would likely be passed onto corporations, the wealthy and the upper middle class rather than the poor and vulnerable.  But if there are those in the Government who would rather aspire towards ‘Catholic social welfare Centrism’ – then this would be a crucial issue on which to take an uncompromising stand.  (both on social welfare; and in opposition to US-style exploitation of the working poor)   (And the same would apply to others identifying as 'compassionate Christians' - though there is a very significant Catholic representation in the Government)

Whatever ? Voter Alienation in Australia’s Neo Liberal Capitalist Reality and the Need for a New Democratic Socialist Economic Model

 

In this latest article, ALP activist and democratic socialist, Geoff Drechsler argues against austerity and for a revived democratic socialist approach to economic management. He argues for the Left to assert itself on the economy - including in the form of economy democracy and full employment.

by Geoff Drechsler

One of the less discussed trends in Australian politics is 'voter disengagement' - the declining rate of voter enrolments, prevalent amongst young voters, and the steady increase in informal voting, particularly in working class areas. At the last federal election, in 2010, in the federal seat of Blaxland, informal votes accounted for 14% of the total votes cast, up from 9% at the previous election in 2007. Before the recent WA state election, one in three 18-25 year olds was not enrolled to vote. Looking specifically at young voters not enrolling, a similar pattern can be observed in other developed democracies, which have predominantly voluntary voting systems. In each new generation in these countries, voter turnout has been steadily declining generally for the last five decades or so. But after decades of economic growth here, why are young Australians so lacklustre about enrolling to vote ??

Could this disconnect be the product of the reality that 20 plus years of economic growth has not led to an increase in economic security, particularly for this group ? The two main political parties have both embraced key neoliberal economic tenets in recent decades, and irrespective of economic growth or not, this still results in greater fluidity in the labour market and less equitable economic outcomes across the community. Also, the high cost of living in major Australian cities then in turn has a multiplier effect on those in this predicament, and delay the events that usually mark the path towards adulthood - starting a family, purchasing a home and getting full-time stable work. Given the dearth of choice politically on economic policy, and the lived reality, the point of voting is maybe somewhat less obvious or attractive ?

Prosperity without Security

* Since 2008, the number of teenagers in full-time jobs has fallen from just under 270,000 to about 200,000 in 2012. In 2012 a quarter of 18-19 year olds were not in full-time study or work.

* Rates of part-time employment have increased significantly. The 2012 edition of How Young People Are Faring indicates that the number of teenagers in part-time work and who were not in education increased from 8.7% in 1986 to 30% in 2012. The proportion has more than doubled for 20 to 24 year-olds from 8.3% to just over 19% during the same period. This reflects a long-term pattern of replacement of full-time employment with more part-time jobs within the teen and young adult labour markets

* ABS data indicates that in 2011, a third of the 814,700 part-time workers who would prefer to work more hours were aged 15 to 24 years. Around 28% of underemployed part-time workers in this age group had insufficient work for a year or more (what the OECD defines as "involuntary part-time work").

Ultimately, it all comes back to economic policy, and the embrace, by centre left parties of neo liberal economics is linked to events at the end of the 20th century. Internationally, there is now a tendency on the Left to focus on social issues and policy because in the 1980s, the failure of the Soviet centrally planned economic model, and the inability of the Scandinavian nation state social democratic economic systems to make the transition to participating effectively in a globalised international economic system undermined the two most widely accepted “left” economic models almost simultaneously. Subsequently, many centre left governments have simply grafted left-wing social policy onto a basically orthodox right wing economic program, seemingly in the hope the former will ameliorate the latter. The absence of a credible "left" economic model has also allowed the Right to dominate economic debate for the last 20 years too. Seizing the opportunity, in countries that have had long term right wing governments during this period, including Australia, these conservative governments have manipulated predictable less equitable economic outcomes (and the inevitable resulting fluidity in the labour market......), and the subsequent insecurity that is generated to undermine the institutions of the welfare state (how popular is Centrelink ?) and promote individual solutions - 'work for the dole', making public sector workers self-employed individual contractors etc etc. This is all enabled by a general loss of faith in collective solutions in the community.

More recently though, due to the 2008 Global Financial Crisis, free market capitalism, and its derivatives, have lost popular credibility as a result of this economic collapse, and failed right wing policy remedies for this. A practical example of this is the UK Conservative Liberal Democrat coalition government austerity program that commenced in 2010. It has all been in pursuit of some ephemeral notion of a 'balanced budget', based on the outdated notion of "the Treasury view"— that fiscal policy has no effect on economic activity. Two years into this austerity program, the UK started 2012 with the biggest trade deficit since 1955, and the government’s adherence to classic neo liberal economic policies has put the UK economy into recession. Fortunately, finally, it appears even the IMF is now questioning austerity budgets. Olivier Blanchard, the IMF chief economist's paper on austerity, at the last American Economic Association's annual meeting, concluded that austerity program's adverse effects are stronger than believed. There is even a new book that claims austerity is seriously bad for our collective health, and that cutbacks have already had a devastating effect across Europe and North America. It points to soaring suicide rates, rising HIV infections and even a malaria outbreak, researchers arguing that in fact governments' austerity drives are costing lives in The Body Economic: Why Austerity Kills.

In contrast, in the post-war period, the one thing that has characterised successful left wing governments of all orientations, whether Chavez's Venezuela or social democratic Sweden has been a successful economic model. These have all also placed a strong emphasis on employment. In Venezuela, between 2002 and 2012, the government has increased social spending by 60.6%, and extreme poverty was reduced from 40% (1996) to 7.3% (2010). Part of this program is the intense political participation that the Venezuelan democracy incorporates, that includes 30,000 communal councils, which determine local social needs and oversee their satisfaction and allows ordinary people to be protagonists of the changes they demand. But also, the Venezuelan economy has low debts, high petroleum reserves and high savings and the Venezuelan economy has grown 47.4% in ten years, that is, 4.3% per annum, and reduced unemployment from 11.3% to 7.7% in the same period. In modern Sweden's case, high rates of productivity, historically low rates of unemployment and high standard of living for all of its citizens in the post war period in one of the world's most highly developed post-industrial societies. Both of these examples show that a viable alternative economic model that has refocused the economy's outcomes more equitably, delivered growth, jobs and development and consequently, unsurprisingly, then led to longer term electoral success. Even at a workplace level, there are numerous examples of successful enterprise level exercises in industrial democracy that have been economically successful, from Ricardo Semler's Semco in Brazil, to the Mondragon Cooperatives in Spain. Ricardo Semler has also been a visiting scholar at the Harvard Business School too, demonstrating the widespread applicability of his ideas.

Alternatives

A viable democratic socialist economic model would be characterised by a mixed economy characterised by a leading role for different forms of social ownership, a proactive role for government and democratic planning, alongside market forces and a viable private sector, introduced incrementally as a consequence of electoral endorsements. The key long term aim of this program is to democratise key economic decision making and incorporate the aspirations of the majority of the population in regards to this process. Undoubtedly, full time permanent full employment being an overt public policy goal (again) is probably one expression of this.This in turn will also lead to more equitable economic outcomes, through moving beyond the pursuit of the profit motive being the sole economic benchmark of success. At a workplace level, alienation would be reduced as workers gained more control by encouraging cooperative and collective workplace industrial democracy process. And a rejection of failed free market orthodoxy will lead to more equitable outcomes that reduce income disparity between the richest and poorest and reverse the trend of Australia being one of the most unequal developed societies.

All of these changes listed above could utilise technological improvements to allow greater distribution of information and participation in workplace decision making in post-industrial white collar workplaces too.

Geoff Drechsler is a Labor Party and trade union activist.

Generation next: where to for Australia’s young people?

http://theconversation.com/generation-next-where-to-for-australias-young-people-10604

Youth face snakes and ladders on the path to full-time employment

http://theconversation.com/youth-face-snakes-and-ladders-on-the-path-to-full-time-employment-10677

 

Paul Krugman “The Big Fail" - NY Times 6.1.2013

 

Austerity kills, economists warn

http://www.guardian.co.uk/business/economics-blog/2013/apr/29/austerity-kills-health-europe-us

ADVERTISEMENT:


AUSTRALIAN SOCIALIST

Volume 20, issue 1 of Australian Socialist is now available.

 

* Accord Politics

* Right to Strike;

* 457 visas

* Left Unity

* Obituary (Pip Duncan)

* Theory of Value

* History of Palestine

* Power of bankers

* Hugo Chavez

* Irish Political Prisoners


To obtain a copy, please send a cheque for $4 made out to "Australian Socialist" (or postage stamps to a value of $4) to:


PO Box 437; Jamison Centre PO; Macquarie ACT 2614

and include a clear return postal address.