Mostly Unpublished Progressive Letters ; May to August 2019 - PLS Have a Read and Discuss

Herald-Sun Letters (mostly unpublished)  May-July 2019

Be Wary of Conservative Double Standards on Free Speech

“Kevin Donnelly (14/5) again makes a case for his version of freedom of speech.  Of course there are problems with free speech as an ‘absolute’.  We cannot allow Holocaust Denial to lead to a culture of forgetting ; or worse – to prepare the ground for future atrocities. But every time you dilute free speech as an absolute you also contribute to a growing wedge with increasing ramifications.  Even as a Christian I recognise that much scripture is at odds with modern thinking , and its expression can be hurtful to various groups.  At the same time faith is central to millions of peoples’ lives ; and criminalisation will lead to repression and polarisation. (Labor is not suggesting any such thing) But Donnelly needs to be more consistent.  ‘Free speech’ means religious doctrines are open to criticism. ‘Free speech’ also means charities and NGOs are not blackmailed to hold their tongues in criticism of government. (as the Howard Government attempted)  It means an organisation with hundreds of thousands of members like GetUp! should not find itself ‘in the crosshairs of government’ – with the intention of silencing it at elections.  By all means campaign for freedom of speech – but be consistent.”

Social Insurance and Infrastructure

“A.Jensen (Your Say 30/5) attacks Labor for making social (public) investments ; and condemns NBN and NDIS as ‘unfunded’.  To begin with, Labor identified a series of tax loopholes (mainly for the wealthy) which could have been closed ; saving tens of billions. But the Liberals ran a scare campaign, including the threat of some totally non-existent ‘death tax.’ Public investments often make sense ; and without them we run the risk of becoming a US-style society with enormous classes of working poor and destitute. Welfare and social insurance provide a safety net without which the unemployed, the mentally ill, the aged and so on  - would find themselves homeless and desperate.  Indeed, we need more money for public housing. NDIS has the potential to greatly improve the lives of some of our most vulnerable Australians.  The NBN, also, was to be the information infrastructure on which the industries of the future arose. But the Coalition went for the cheaper option. Now we have cost blow-outs and inferior technology.   Public investment in infrastructure and services,  and collective consumption (eg: the Pharmaceutical Benefits Scheme) is often in all our interests ; providing a ‘better deal’ ; leaving us all better off at the end of the day. “

Women’s Progress Welcome ; But Men are not ‘Essentially Bad’

“There has been welcome progress towards gender equality in recent years ; with emphasis on women’s sport ; equal representation in parliament ; debate about women’s disadvantage in the labour market, and attempts by the ALP to subsidise child care wages to rectify this in part.  But as Alan Barron (Your Say 3/6) appears to recognise, there has been another side to this story whereby ‘maleness’ appears to be ascribed  a ‘bad essence’.  Messages to the effect ‘girls can do anything’ are positive ; but boys must not feel ‘left out’ ; as if less is expected of them.  And as if ‘maleness’ is ‘toxic’. Women must be encouraged to assert themselves: to assert that “no means no” ; and men must be educated to respect this.  And men and women must take special care to be certain of consent where a couple are under the influence of alcohol. But should we eliminate all spontaneity?  Also the cause of gender equality has advanced in leaps and bounds.  But what about class-based inequality?   The struggle for gender equality needs to be but the first step in a much broader fight for equality.”

The Reality behind ‘Class Warfare’ Rhetoric

“The Herald-Sun (YS 4/6) talks about an end to “retrograde” “class warfare” from the ALP. But why is it not ‘class warfare’ when the Conservatives cut Health, Education, Welfare, public infrastructure and Social Insurance to pay for tax credits and tax cuts for the wealthy?  And gradually there is a vicious cycle of bracket creep and tax cuts for the well-off which is leading in the direction of ‘flat tax’.  Under which low and middle income earners would suffer. The fact is that under the Conservatives there is a constant state of class war ; which is gradually destroying our egalitarian traditions and leading us along the path of the US model: underclass, and great swathes of utterly destitute.  Mixed economies with strong welfare states can be strong economies as the Nordics (Sweden, Finland, Norway, Denmark) have shown.  The Herald-Sun may call it ‘class warfare’ ; but if the ALP gives up on distributive justice for workers and the disadvantaged it is giving up its core reason for being. What we need is a responsible media that stops throwing around loaded language to convince people to vote against their interests out of fear , and provides a balanced analysis instead.”

Labor and Workers must reject ‘Aspirational’ Ideology

“Lou Coppola (Your Say 10/6) condemns a ‘non-Aspirational’ Left which “denigrates” Australia. All countries have events in their histories they may now be less than proud of. But a strong democracy is capable of recognising both the good and the bad ; putting things right ; and then moving forward – our heads a bit higher.  For Australia’s part seminal moments include the granting of the suffrage for men and women ; granting indigenous people the vote, and then the Keating Government observing Land Rights ; and the establishment of Medicare as a more fair and efficient alternative to a US style private health system. This does not mean there’s not room to improve with a Treaty and further extension of universal health care into areas like dental and prosthetics. Meanwhile:  ‘aspirational’ Ideology around personal enrichment is a ploy for working class Australians to turn against their own interests for the sake of a pipe dream.  Most working class Australians see through it ; but even if the Conservatives can convince a minority it can be electorally influential.  Labor needs to confront this Ideology and maintain that tax cuts for the rich and austerity are not in the interests of workers.”

What’s at stake with the  CFMMEU and ‘Ensuring Integrity’

“(14/6)  “The John Setka affair is being exploited as a pretext to push through hard-right-wing anti union laws that are undemocratic and overrun citizens’ liberal rights.  The proposed laws would not only see the prosecution of leaders ; but the dissolution of unions themselves, leaving workers defenceless.   So much for freedom of association!   (and what happens to workers' collectively-held assets via their unions?) Without collective organisation in unions, workers have no defence of their rights and interests but government.  And government definitely cannot always be relied upon.  Without unions and without a right to withdraw labour workers are reduced to a condition somewhat similar to slavery.  Whether in defence of wages and working conditions ; or the promotion of safety ; or political industrial action to protest against unjust laws : industrial liberties must be preserved if a society is to honestly call itself liberal and democratic.  The areas which are the responsibility of the CFMMEU are also highly sensitive to the power of the broader labour movement to defend workers interests’ ; and if it ever comes to it – to defend democracy itself.  The CFMMEU’s strength also provides the opportunity to assist industrially weaker unions.  If necessary the broad labour movement must be willing to take action to render the ‘Ensuring Integrity ‘ legislation ‘the dead letter of the law’.  The case of Clarrie O’Shea in 1969 is instructive here.

Theophanous should rethink Call for Rightward Shift

“Theo Theophanous (17/6) urges Labor to ‘move to the Centre’. But the ‘Centre’ is relative, and with the Conservatives dictating the terms, it usually means shifting Right. He advocates passing the Coalition’s tax legislation in full ; avoiding ‘tax and spend’ policies.  With a Recession probably looming, that would mean redistribution to the wealthy, and massive austerity down the track ; making aged care reform impossible. Without social wage and social insurance expansion ; without progressive tax ; Labor is no longer a Social Democratic Party. Labor’s problems were confusion re: policy complexity; and scare campaigns (eg: the ‘Death Tax’) which cut through ; supported by a $60 million campaign by Clive Palmer which redirected preferences. That, and high unemployment in Queensland, with the misassumption Adani would create many jobs. Labor must be ‘progressively gradualist’, arguing for moderate increased progressive taxes in the vicinity of 1% to 1.5% of GDP.  (in addition to rescinding regressive Liberal Tax Cuts) It must be clear these do no hurt lower to middle income earners ; and that voters get ‘value for money’ in health, education, infrastructure, social insurance. If we accept the Coalition’s terms of reference in tax we let the Conservatives impose a ‘policy straight-jacket’ preventing social wage and social insurance expansion indefinitely.”

Need to Reforge Working Class as a “Class for Itself”

“Jeff Kennett argues that with widespread deindustrialisation and the existence of some very high wage jobs that ‘the working class no longer exists’. The working class has always included wage labourers exploited by business ; but has been widely reinterpreted to include public sector workers such as nurses and teachers.  The most important aspect of being ‘working class’ is not whether one is ‘blue collar’ or ‘white collar’, but that workers must sell their labour in order to survive.  What is true is that consciousness of class is falling ; partly due to a fragmentation of class identity with deindustrialisation.  But the reality is that ‘as a class in itself’ the working class still exists. And the challenge for the labour movement is to restore a sense of shared identity and interest amidst diversity. So the working class arises as 'a class for itself' in the broad sense. As for the prosperity Kennett alludes to ; the median wage is about approximately $53,000.  Which means half of all workers earn $53,000/year or less. “
https://www.news.com.au/finance/work/how-much-do-you-need-to-earn-to-be-rich-in-australia/news-story/cd7e6647199773c56ad5a9270c7aab87

Left must not Shrink Back from the True Reality of ‘Class Warfare’

“There’s an old saying on the Left:  “they only call it class warfare when we fight back”. To its discredit Labor during the election said little about the massive austerity that would necessarily follow those tax cuts. (the Coalition said nothing about this)  Labor proposed a traditional centre-left platform: closing tax loopholes to deliver a modest windfall which would have enabled cancer and dental care, subsidised child care, money for TAFE and more. This is labelled ‘class warfare’.  But when the Coalition restructures the tax system so workers on lower and middle incomes pay proportionately much more of the burden (moving towards a ‘flat tax’) this is lauded as ‘reform’. And also when it abolishes Penalty Rates.  Labor needs the focus and resolve to emphasise the coming austerity (on hospitals, schools, aged care, infrastructure) all through this term of government.  And so (in government) withdraw ‘phase 3’ which delivers $95 billion to the wealthy over only the first five years.  Politics is a continual ‘tug of war’ between labour, capital and citizens.   If we refuse to fight back for fear of the ‘class warfare’ label we have lost before we even begin.  That’s the point of it.”

Unemployed must be Treated with Decency

“A recent Herald-Sun article was Opinion dressed up as reporting. (A.Galloway, Insult to Taxpayers, Payments to Bludgers Withheld ; 31/7)   The object of the article was to inspire ‘outrage’ that job-seekers had missed appointments for possible jobs)  But as the article itself concedes, mutual obligation is very severe when it comes to Newstart, and the people in question had their payments suspended.   Also, Newstart payments are only approximately $40 a day ; imposing harsh conditions of poverty ; and are hardly a ‘lifestyle choice’.  Those on Newstart are hard pressed to feed themselves and put a roof over their head, let alone pay for smart clothes, a computer and so on – necessary in the modern world to search for work.  For many: disabled, older unemployed, regional unemployed – the search for work is almost hopeless. And yet we persist with promoting this loathing for the unemployed.  The real point of this regime is to create a ‘whip of hunger and utter destitution’ so jobseekers are forced to take any job no matter the pay and conditions.  This ‘reserve army of labour’ provides employers with ‘the whip hand’ and helps drive down wages and conditions for hundreds of thousands of other jobseekers.”

‘The Age’ Letters May to July 2019  (Mostly unpublished)

Democracy and the ‘Fair Go’ at Stake as Labor considers its Options

“(26/5) If Labor abandons distributive justice it more or less abandons its reason for being.  Labor needs to commission research from a multiplicity of sources to minimise the chances for error. Then it needs to actively campaign in order to restore support for a traditional social democratic redistributive agenda; which restores progressivity to the tax system with a focus on corporations and the top 10%.  And also full indexation of the bottom few tax brackets. Issues like superannuation tax concessions remain crucial for the Budget and distributive justice ; costing tens of billions annually.  Labor also needs to explain how the mix of bracket creep and regressively-structured tax cuts make the income tax system more and more unfair.  Labor needs a deep and broad policy agenda.  But Morisson’s victory shows how a narrow and negative message can ‘cut through’.  As well as the shallow but effective construction of the ‘ScoMo’ ‘everyman’ persona.  But is democracy viable any longer when the ‘Power Resources’ of the Right are overwhelming ; where a billionaire can buy an election ; where the Murdoch monopoly mass print media has so little effective competition ; and the Government is canvassing legislation to ban GetUp! From campaigning?”

https://www.news.com.au/national/federal-election/why-australias-superannuation-scheme-is-stacked-against-you/news-story/9ddbc4ffb7c59384dbc6827cc4f74464

Why the Anti-Union Stance at ‘The Drum’?

“The other night watching ‘The Drum’ on the ABC I was appalled to see a virtual consensus that anti-union laws enabling the deregistration of unions who take unprotected industrial action could be justified. The line of argument seemed to be that since corporations should be accountable if breaking the law, so too should unions.  But what this all really begs is the question of whether or not workers should have a right to withdraw their labour – full stop. This issue is now much bigger than John Setka and whatever indiscretions he has made.  The proposed laws could be a weapon with which to break the labour movement in this country.  As Sally McManus argued some time ago now – laws are not necessarily right.  Sometimes civil disobedience is justified – including industrial action.  If unions cannot take industrial action workers’ options are very limited to defend their interests. We cannot let John Setka be used as a cover for union-busting legislation which will weaken workers conditions, rights, strength and liberties in this country.”

‘The Age’ Shifts Right on Tax Debate

“The Age (22/6) argues that middle and high income earners will pay some of the highest income taxes in the world without the Conservatives’ $160 billion tax cut plan.  But ‘The Age’ has been unclear what it means by ‘middle income’ in the past.  In fact the Median (ie: middle) income is approximately $53,000/year.   $120,000/year is actually a very high income compared with most.  Also the gap between Australian and OECD average tax rates is almost 7 percentage points.  (or approaching $119 billion/year)  The Coalition’s tax cuts would mean massive austerity (worse in a recession) ; and maybe some of the gap would be made up by raising the GST (as in many European countries with their VATs) and a negative distributive outcome for genuine low and middle income earners.  Raising the top threshold of the 32.5% tax bracket from $120,000 to $200,000 would very significantly ‘flatten’ the overall system.  Some other countries may also have inheritance taxes, wealth taxes, strong land taxes ; but Australia has always depended highly on income tax.   The trend is towards less equality. But we don’t HAVE to follow the trend.  And there was a time I expected better from ‘The Age’.”

https://www.news.com.au/finance/work/how-much-do-you-need-to-earn-to-be-rich-in-australia/news-story/cd7e6647199773c56ad5a9270c7aab87?fbclid=IwAR0PdJydLNCE2-ltF_xHhybr8HGQASEPH4OPQLaG_OkyVMTzyXXRIWIuQ50

https://data.oecd.org/tax/tax-revenue.htm

https://www.budget.gov.au/2019-20/content/tax.htm

Welcome Consideration on Civics Education in Victoria: But Stronger Action Necessary

“It was good to read that the Victorian State Government is set to emphasise Civics education (17/7), partly in response to the voices of students themselves.  This must include processes, parties and institutions: but it must be about more than this as well.  Education for active and critical citizenship must explore interests, values and pathways to civic activism.  That includes “ideological literacy”: an appreciation of the political spectrum from far left to centre, and to the far right. As well as libertarian and authoritarian influences.  Importantly: there need to be nuanced understandings. Political categories like ‘social democracy’, ‘liberalism’, ‘democratic socialism’, ‘conservatism’ have historically meant different things to different people.  Opportunities for activism include parties, representative democracy, and social movements. The aim is not to indoctrinate: but rather this calls upon the professionalism of teachers to impart knowledge, wisdom and understanding in an inclusive way. Students should go out into the world ready to participate as active and informed citizens ; always ready to widen their horizons and make informed political decisions and interventions.  This is about empowerment ; and that empowerment is good for democracy.”

Can Labor accommodate an inclusive and open internal debate on Tax and the Social Wage?

above: The Ageing Population will have severe Budgetary Implications and Labor need to be planning now ; including for the provision of first class Aged Care for all ; now is not the time to capitulate on 'small government'.  Labor must 'go on the front foot' as the Aged Care and Mental Health Royal Commissions pass down their findings

Dr Tristan Ewins

I’ve been copping some criticism for my decision to publicly disagree with the Parliamentary Labor Party’s decision to waive through the Conservative Government’s tax cuts package – which includes some benefits for middle income earners, but nothing for the working poor, and a massive windfall for the rich.  ‘Phase 3’ – which focuses mainly on tax breaks for the rich – will cost $95 billion over only its first five years.

Many reasons have been given for the decision, including Labor’s desire not to be seen to be ‘getting in the way’ of a tax cut for middle income and higher income workers.  The rationale is that we pick our fights at a time and context of our own choosing.   And don’t give the Coalition a bludgeon to beat us with in the meantime.  And some are arguing we could move to rescind the Phase 3 cuts closer to the next election.

This is problematic for a number of reasons. Generally, it’s easier to legislate tax cuts than to repeal them.  Various ‘pragmatists’ in the Party will point to the need to court ‘aspirationals’ (an Ideological construction meant to promote capitulation on distributive justice) and some will ‘get cold feet’ on any rescission as the election approaches.   Even some figures on the Left are arguing in favour of the tax cuts, not just as a tactical imperative, but on the basis they do not see the social wage as  a priority.  Though I’m sure there are many more who understand the place of the social wage in Labor’s mission and identity.  Some are opposing ‘Laborism’ to ‘Social Democracy’ ; but when pressed I doubt these would implement reforms on pattern bargaining, labour market regulation, secondary boycott, and so on. 

Also ; Labor’s strategy is demoralising and disorienting for many members and supporters.  Labor 'didn't have the numbers' but 'taking a stand' would have been good for morale ; and would have left less ambiguity where we stand. Though that will be ameliorated should Labor commit to rescinding Phase 3 at a  later date “if it proves to be fiscally irresponsible” and “a barrier to provision of front line services”.  Which we know will be the case. 

So can the Party tolerate debate on this issue ; and if so should it be ‘behind closed doors’, or should some of it be public? 

Firstly, if most of the Left (and possibly significant parts of the Right) want to see Phase 3 withdrawn at the next election we need a discussion within the Party as to why this is so urgent. There must be grassroots pressure so even ‘pragmatic’ MPs understand it’s what the Party expects and demands.  And activists and other members must be educated as to the consequences of the policy if it is not withdrawn.  Debate within policy committees and so on is not good enough as it does not engage the majority of members.   Public debate also gives cause for supporters to ‘take heart’ that there are significant forces in the Party fighting to rescind the appalling Phase 3 tax cuts later on. We need to be arguing that we will review the policy next election not only because it is fiscally irresponsible ; but also the distributional impacts, and impact on services.  

And if Party figures think they cannot risk disunity ‘at the top’ ; surely at the least they can see the good of ongoing and permanent debate ‘at the grassroots’. And when the Coalition uses the old ‘class warfare’ label we need to respond that it is they who are waging class warfare ; imposing a greater proportional tax burden on  lower and middle income Australians, cutting services,  removing penalty rates, seeking to smash unions, degrade conditions and so on.

There’s also a problem that if the Coalition gets away with this tactic once, they will try it again.  That is: combining policy which is of some interest to workers in the short term with policies which will be very harmful to most over the long term with damage to the social wage, social insurance and collective consumption, welfare state, and funds for public infrastructure.  And trying to pass them 'as a package deal'.

The  Aged Care and Mental Health Royal Commissions are developing their findings even as this is written.  Action on mental health and aged care will require resources that simply won’t be there if the Coalition gets its way.  We’re talking action on a similar scale to the NDIS. (National Disability Insurance Scheme)   The ageing population makes action there especially urgent.

Labor’s strategy must be to demand action on these fronts, in the full knowledge that this puts fiscal pressure on the Conservatives to pull back on tax cuts.  This is not necessarily because of some cynical partisanship or desire to ‘wreck’, but because the Aged and the mentally ill desperately require our support. More hospital beds, better pensions, psychological counselling and community support.  Enshrined ratios (nurses and aged care workers) in Aged Care and the funds to make that possible.  Better training – including dementia training – and better wages and conditions for Aged Care staff.   Resources for ‘quality of life’ ; private rooms, quality food, access to internet, facilitated discussions and games , a life that is worth living – and more than sitting people down in front of televisions all day.  Also more money for ‘ageing in place’ programs ; ensuring everyone who needs such a package can receive support quickly ; without onerous waiting lists that currently can go on over a year.  And on the way begin winding back regressive user-pays.

In the meantime Labor must resist any austerity ‘brought forward’ to accommodate the Coalition’s tax cuts.

The bottom line is that Labor needs a debate which keeps distributive justice, progressive tax, social wage provision – front and centre of the Party’s agenda.  Over the medium term we need to be moving towards the OECD average tax to GDP ratio.   

Labor also has to head off the so called ‘ensuring integrity’ anti-unions laws ; and should be engaging the crossbenches on this now.  We also need to prioritise the Senate for the next election.  If the anti-union legislation passes the industrial wing needs to be prepared for a fight to render the legislation ‘the dead letter of the law’.

Many Labor activists are now ‘falling into line’ because of the idea that ‘disunity is death’.  And hence a desire from some to enforce conformity. The fight to oppose Phase Three outright from the outset has been lost.  Many are bitter, but we need to plan ahead for the future. The next debate is whether we press for extended services on aged care and mental health we know are incompatible with the Coalition’s vision of ‘ever smaller government’.  And following that: whether we are willing to rescind Phase Three after the next election ; and maybe even modestly raise taxes by around 1% to 1.5% of GDP on top of that to fund an expansion of the social wage which ‘takes us forwards’, not just a ‘rear-guard action’.

Negative Gearing reform and Franking Credits may be off the agenda for now, but the reality is we failed to sell our policies.  Perhaps we should have imposed means tests in places so our policies did not disadvantage any genuine ‘battlers’.  Alternative policies could include a very big commitment on public housing.  As well as a restructuring of income tax, and imposition of indexation at the lower brackets.  Also a progressive increase of the Medicare Levy to fund dental and mental health; and a National Aged Care Insurance Levy to fund  Aged Care reform.  We need a vision which 'takes vulnerable and working Australians forwards'.  Already-progressive forces need to ‘plan ahead’ for the next National Conference.

The election was close and we should not succumb to despair. With reform re: ‘big money in politics’ , and full preparedness for any future Conservative ‘scare campaigns’ we should be able to go into the next election ‘on the front foot’.

Emotion and Ideology: Liberal Strategies and Labor Responses

Dr Tristan Ewins

The Conservatives won the recent election in Australia largely because ‘they pushed all the most effective emotional buttons’ ; and had the ‘Power Resources’ to do so most thoroughly. Labor had comprehensive, rational policies in the economic interests of a clear majority of Australians.  And yet still Labor lost. 

In order to trace some of the causes beyond this result we need to consider the place of emotion and moral judgement in political activity and choice.

What follows is a brief consideration of the science: after which there is a much more significant consideration of the political ramifications. 

In his work ‘Hayek versus Marx’ , Socialist intellectual, Eric Aarons ; who had a background including a Science Degree in University: noted that

“The cortex or thin covering layer of the frontal lobes of the brain is the focal point for our reasoning capacity.”   (Aarons p 107)    

He further considers the observation of the scientist, Damasio, that:

“secondary” emotions…have to go through the cortical reasoning centre to activate the body..”

Thus he concludes there is a:  “connection between emotion, reason and action…”

For Aarons, this is corroborated by Damasio’s work in the case study of “Elliot’:

Here an “orange-size tumor” was “removed from the right frontal lobe of his brain…” When tested [he] did well in moral judgment – and in providing solutions to social problems… But thereafter he remarked “And after all this, I still wouldn’t know what to do!”  

Damasio realised: “the connections between the emotional and the reasoning centres of Elliot’s brain had been severed by the operation to remove the tumour from his right frontal lobe…”

Thus, in light of this analysis, we are provided with a rationale as to why:

“moral sentiments spurred action more strongly than reason”… (Aarons, pp 107-108)

Reason and moral sentiments (partly emotional in origin), thus, ought be taken together: the entirety of the human psyche directed towards the tasks of justice, solidarity, kindness, progress and survival. 

Again ; Labor’s loss can be explained in part by the Conservatives’ superior Power Resources.  A sympathetic Conservative Press, a cowed ABC, the active support of a billionaire willing to pour tens of millions into a campaign to channel preferences to the Liberal-National Coalition.

Reforming Civics Educations has some potential to get people thinking rationally and making consistent values-based decisions. (which is why some Conservatives oppose curricula reform for  active and critical citizenship ; even where there is no Ideological prejudice)  But it will always be a mix of reason and emotion ; and emotion will be perhaps the most significant motivating factor.


Obviously Labor still has a very significant working class base ; but there are also 'working class Tories' - who while a minority,  do a lot of damage.  A 3.5% swing to Clive Palmer ; and a comparable vote for One Nation – were enough to swing the election on preferences. And unless we can somehow restore a sense of class consciousness, things will get worse.

The problem is that Conservative propaganda is carefully crafted around a series of ‘mythologies’ .  And it works. The stigmatization of class conflict ‘from below’ (while rationalising and naturalising class warfare ‘waged from above’). 'Aspirational' Ideology ; the stigmatisation of distributive justice as 'the politics of envy'. We have to tear these ideas apart in the public sphere or we will always be operating in a context of Liberal Ideology. That must involve a mixture of rational deconstruction ; and appeal to emotions of Hope, Love, Social Solidarity and Righteous Anger.   


Genuinely progressive policies can inspire Hope exactly because they appeal to instincts of social solidarity and compassion ; while addressing fears of homelessness or joblessness ; or being ‘cast adrift’ amidst medical costs (eg: dental) which can spiral out of control.  A rehabilitation of some ‘class struggle’ discourse could also emphasise that the class war is being actively waged against the working class and the vulnerable. But that a struggle for justice is not some ‘politics of envy’ , and does not deserve stigma.

But perhaps part of the problem is the dominance of emotion in politics - especially fear. As opposed to rational consideration of policies within a values framework.  German intellectual Jurgen Habermas strove for  a ‘Perfect Speech Situation’ of enlightened and rational exchange to deliver socialism.  But to a degree we have to come to terms with the place of emotion. Because it cannot be entirely changed. And emotional themes can add power and momentum to our own policies.  That’s not entirely bad.  The problem is that it also leaves us open to cynical manipulation.  

Conservatives in Australia have always rejected trade unions and class struggle waged by workers ; whether for ‘a fairer share of the pie’ in its modest form ; or socialism in its radical form.  Religion has also played a part. Divisions between Catholics and Protestants, and ‘loyalty to Empire’ fueled Philip Game’s dismissal of the New South Wales Lang Labor Government in the 1930s.  At the time several quasi-fascist militias had also been formed ‘for fear of Communism’ (and Catholics)  Lang had refused to repay ‘war debts’ to Britain incurred in the mobilisation of the First AIF (Australian Imperial Force) – which suffered over 60,000 casualties (deaths) during World War One. But Catholic hostility to Communism also led to the split of the Labor Party in the 1950s, and the formation of the Democratic Labour Party – which supported and reinforced Conservative Governments for decades.

Historically, the emotional/moral climate shifted significantly during the Hawke years.  Hawke’s themes of ‘reconciliation’ helped capture the imagination of a generation ; not least of all because it brought the corporate sector on board.  The corporates saw they could gain under a Hawke government via corporatist arrangements.  (though temporary because of the labour movement’s decline ; and the resulting disinterest of business once it had got what it wanted)  Partly this involved economic restructuring and reforms that were helpful for the Australian economy’s continued success.  But it also involved a ‘management’ of the labour movement’s decline as opposed to a stronger fight to prevent it.

The right to withdraw labour in many circumstances was abandoned while promoting rhetoric of ‘reconciliation’. Industrial action was reduced in the public imagination to “disruption” ; where ‘conflict’ was considered ‘bad’.  This confirmed popular aversion to “union power”.  Unless it was ‘responsible’. (ie: cowed and passive) For years the message was hammered home: industrial action was ‘disruptive’ ; and Labor’s relations with the unions could prevent industrial action.  Blue collar unions were stigmatised (in the media and by the Liberals) in a play to old class prejudices between ‘white collar’ and ‘blue collar’ workers ; with persistent delusions by some that they were ‘middle class’.  There is still much of this with popular perceptions of the CFMEU.

In part you could say it was a matter of ‘Power Resources’ ; with a compromise based on the balance of class forces. But Swedish unions never compromised as much as Australian unions under the Accords and after.  And the Accord never delivered anything remotely ‘Nordic’ in scale.

Since then the monopoly mass media has carefully ‘pushed our emotional buttons’ to shape the political climate of the country.  ‘Union power’ equaled ‘thuggery’ and ‘disruption and inconvenience to the public’. Apparently, so do mass protests. Amidst structural unemployment, the jobless were  vilified as ‘freeloaders’ and pressed into forced labour.  An ‘aspirational’ Ideology was developed to divide the working class ; and con middle income workers into supporting economically Liberal policies which were not in their interests.  “Aspirational” Ideology was contrasted with policies of ‘Envy” and 'Class War' ; which were morally dismissed as undermining social cohesion ; and ‘getting in the way’ of those willing to “have a go”. (the Liberals' most recent rhetoric in undermining what remains of the nation’s egalitarian traditions)  

The campaign to ‘stop the boats’ played overwhelmingly on Fear ; and ‘the Tampa election’ (2001) was won on the basis of moral condemnation and fears founded on false claims of refugees ‘throwing children overboard’. 

Importantly ; the rise of the New Left in the 1960s - and its later development into today’s social movements - was depicted in such a way as to split the working class.  Conservatives developed a discourse on so-called ‘Left Elites’ ; ‘the Latte set’ and ‘Chardonnay Socialists’ - who were ‘out of touch’ with ‘mainstream Australia’. Social conservatism was cultivated in much of the monopoly mass media , and was appealed to in order to divide ‘the Left intelligentsia’ from ‘the mainstream’. (ie: the majority of the working class)  The most ‘extreme’ examples of ‘Political Correctness’ were reported at regular intervals in order to maximise popular resentment. And ‘the PC class’ was depicted as being ‘arrogantly judgmental’ against the popular majority. (who just happened to be the working class)

The impression that Labor might repress ‘religious liberties’ may also be a ‘bridge’ too far. There is a conflict of rights here which can only be negotiated – it cannot be resolved. Long term, the Reaction cannot and will not ‘turn back the clock’ on sexual liberties.  But if Labor is not careful – and allows a polarisation to occur - a resurgent Christian Conservatism could be instrumental in delivering victory to the Conservatives.

Right-Libertarian small government philosophy (manifest at times in the Institute of Public Affairs and Centre for Independent Studies) has promoted the idea that capitalists and workers all have an inalienable right to whatever wages, profits or dividends they receive in the ‘marketplace’. Labor had been complicit in the small government and privatisation Ideologies for decades.  Finally under Shorten Labor embraced significant (though still modest) progressive tax reform. But now that a scare campaign has contributed to its defeat, it might be reluctant to venture there again. 

The idea that “tax is theft” undermines notions of social solidarity, collective consumption and social insurance.  Even though these deliver significant results for all workers. Implicit is a moral judgement: “tax is theft, and no-one has a right to take YOUR money”.  A ‘death tax’ (eg: an inheritance tax or death duties) is thought to be particularly offensive ; hence the (dishonest) Liberal scare campaign. It is no coincidence that inheritance taxes could mainly impact upon the bourgeoisie. And the fact that employers expropriate surplus value from workers apparently has no place in this discourse.

These efforts have not been entirely successful.  Again, Labor retains a significant base.  The New Social Movements which emerged from the New Left together involve a significant base of mobilisation and influence.  Though they are not a replacement for the strategic location and significance of the working class.

Arguably, humanity possesses instincts of social solidarity which have been essential to its survival. And most people care for family who might end up enduring horrors in under-resourced nursing homes ; or may linger for over a year waiting for home-care packages. 

Exploitation of workers – especially of those on the lowest wages – can also be argued as theft.  Citizens have every rational reason to fear that Conservatives aim to gradually undermine the nation’s ‘social safety net’ ; and atomise workers and lower wages while reducing their bargaining power. And to lose your job usually means relegation to destitution under NewStart ; and forced to exhaust your savings. For both young and mature workers job prospects can often be bleak.  Conservative hostility to Socialised Medicine (eg: Medicare) is also much more than a ‘Labor scare campaign’. A ‘flat tax’ may seem fair superficially ; but would take from low to middle income workers and redistribute to the rich.  Finally there has been a backlash against the open ended detainment of asylum seekers in concentration camps ; and indifference and narrow self-interest in face of the threat of Climate Change to the Planet.

By contrast there is the Hope that a Labor Government could fund a National Aged Care Insurance Scheme.  It could re-regulate the lower end of the labour market ; subsidise the wages of child care workers and aged care workers ; consolidate and increase Newstart while abolishing labour conscription ; consolidate the ‘social safety net’ – expanding Medicare into Dental ; expanding public housing ; funds to eliminate homelessness.  Labor could ‘fine tune’ the NDIS. (National Disability Insurance Scheme)  Further ; Labor could implement onshore processing of asylum seekers.  It could lead the way on climate change with direct investment in renewables.  And it could restructure the tax system: including the addition of new brackets, and the indexation of lower brackets to prevent the vicious cycle of bracket-creep and regressive tax cuts.  (leading gradually to flat taxation)

Again, though:  Labor faces an imbalance of Power Resources.  It must fight to end the influence of ‘Big Money’ in Politics.  And together we must resist moves to ban organisations like GetUp from actively campaigning during elections. We must mobilise our own resources to challenge the monopoly mass media.  And upon achieving government we must implement policies for true media diversity.  In the face of massive opposition we need to develop the strategy and tactics to fight the Conservatives against the odds and win. 

There is also the possibility that the Liberal victory is a ‘poison chalice’ in that escalating tensions and trade war will help lead to economic downturn. 

There are those who will argue that some of these policies ‘have been tried but failed’.  But if Labor renounces a distributive justice agenda it abandons its very reason for being.  Labor must respond with regroupment, rather than retreating into an insipid Blairite Centrism.  Labor must be the Party of progress ; though for that we also need some idea of what we want to progress towards.  I have suggested a short term agenda here ; but long term we must ask more fundamental questions about capitalism.  By making emotional and moral appeals ; with a mixture of messages at a variety of levels – from the complex to the simplified and the concise.  And also promoting clear moral judgement and policy evaluation. 

Labor needs to re-evaluate its strategy and tactics without abandoning substance.   That is the path to a possible future Labor victory.


Bibliography:

Aarons, Eric; Hayek versus Marx And Today’s Challenges; Routledge. New York, 2009

Labor Turning Left on Inequality ; Let’s Make Sure the Policies Match the Rhetoric

In a very-welcome move, Bill Shorten (above) is talking about Action on Inequality (specifically progressive tax reform) ; Labor Activists need to support this move, while at the same time appraising the associated Policies, and engaging in such a debate as to ensure the Policies match the Rhetoric. 

Dr Tristan Ewins

Apparently Federal Labor under Bill Shorten is considering significant reform of Australia’s tax system to bring in potentially billions in new annual revenue, and to address the scourges of disadvantage, inequality and poverty.   

Labor had already long since committed to reform on capital gains tax concessions and negative gearing ; with some modest changes on superannuation tax concessions as well. 

But according to ‘Age’ journalist, Peter Martin, additional possible options now being canvassed include:  (‘The Age’ 22/7, p 17)

·         cracking down on the abuse of family trusts by the rich, bringing in maybe over $3.5 billion a year

·         and “ending the diesel fuel rebate” for miners and farmers ; again bringing in perhaps over $4 billion

These would be very-welcome announcements should they eventuate. Though to aspire to an extended social wage and welfare state Labor really needs to be considering ‘in the ballpark’ of 5% of GDP in progressive new annual spending – arrived at over several terms. 

And a figure of increasing Federal Government expenditure by 2% of GDP may be appropriate and realistic under a first term Labor government.  (ie: increase progressive tax and associated expenditure by around $32 billion in a $1.6 trillion economy)

We will consider other possibilities to reach that vicinity later in this article.

The Herald-Sun has responded to this recent positioning on distributive justice by Shorten ,  proclaiming that: “Bill Shorten has ratched up his class warfare rhetoric”. For the Herald-Sun instead Labor must cut “wasteful spending”  and not target “so-called” “rich and big business”.   Here inequality is to be considered not a reality. Rather according to the Herald-Sun it is Shorten who is “dividing us” into a “Have and Have-Not nation”.   (Herald-Sun, 22/7, p 12, 38)  There is talk of rewarding and not punishing “aspiration” ; and a rising cost of living is blamed on renewable energy.  (as opposed, for instance, to abuse of market power and inferior cost structures in the wake of privatisation)

But  ‘the Australian’ (22/7, pp 1, 8)  talks itself into a corner while unwittingly providing ammunition to refute the Herald-Sun’s suggestion that ‘inequality is a mirage’ conjured up by Shorten , and is not real. 

It quotes labour market economist Professor Robert Wilkins to the effect that inequality has not been “ever rising” since the Global Financial Crisis. (2008)  But then has to concede that the portion of national income going to the top 1 per cent has approximately doubled since the 1970s to over 8 per cent.  Wilkins also interestingly concedes that inequality is “high by modern standards”. 

Wilkins also concedes that we do have wage stagnation. And when you add a rising cost of living the reason inequality is becoming a far more urgent and resonant issue is clear.   

Further ; ‘The Australian’ observes that Shorten and Bowen are drawing on pre-tax figures on inequality ;  But if anything taxes have long been becoming lower, more broad-based, and less progressive ; at the same time as we have observed a growth in the application of the ‘user pays principle’ for everything from education to water.

Briefly, arguments about ‘the size of government’ also flounder in the face of statistics.  Whereas Australia enjoyed a general tax rate of 26 per cent of GDP and expenditure levels of 35 per cent of GDP in 2014,  the figures for Finland were at 43 per cent of GDP and 55 per cent of GDP respectively.   Meanwhile Germany enjoyed a total tax take of 37 per cent of GDP, and expenditure levels of 45 per cent of GDP. 

So Australia is lagging behind some of the most successful economies in the world in this respect. Despite Ideological claims to the contrary from the Business Council of Australia (‘The Australian’, 22/7/17) and elsewhere, the reality is that ‘bigger government’ can be good for the economy, and even ‘good for business’.

While Labor has recently only been courageous enough to target the very rich with admittedly very-modest reforms, ACOSS observed in a 2015 report that inequality was marked in our supposedly-egalitarian nation. 

Drawing on ABS (Australian Bureau of Statistics) research, ACOSS depicted the average income and wealth according to five “quintiles” ;  “a statistical value representing 20% of the population, of which the first quintile represents the lowest fifth of the population, 1-20%; the second quintile represents the second fifth, 21-40% and so on”.

Here the bottom 20% of Australian households enjoyed a total averaged income of under $34,000/year ; while the quintile immediately above enjoyed a total averaged income of only $67,113.  The middle or third quintile amounted to $97,570  ; the fourth to $134,127 ; and the final and wealthiest layer $232,175.

Household wealth was similarly measured ; and here the bottom 20% enjoyed average total household wealth of $31,100, but the top 20% enjoyed average wealth of $2,212,200.

This gives us some idea of the extent of income and wealth inequality.  Though these statistics may also admittedly be influenced in the context of ‘asset rich, income poor’ households ; those who may own a family home for instance, but who may fall into one of the bottom two quintiles for income. 

Also the top 20% wealth and income quintiles may be affected by the weighting of the extremely wealthy.  Again: after all, research quoted by Robert Wilkins in ‘The Australian’ (22/7/17)  has it that the top 1 per cent alone account for over 8 per cent of total wealth in Australia.

Labor needs a nuanced approach: assisting the income poor and the asset poor ; while redistributing from those who are income and asset rich.  Deflating the housing bubble and making home ownership a real prospect for families again is crucial. Labor’s Negative Gearing reforms are essential here.  Expanding public housing is necessary to assist low income families and vulnerable individuals as well: while also boosting supply ; with a ‘flow on effect’ to affordability for everyone.

But that’s not the end of the story.  In short Labor needs to redistribute from a broad enough economic base to fund redistribution via the tax mix, tax-transfer system, social wage and welfare state.  That must mean redistribution from the upper middle class as well as the outrageously wealthy.

Yet tax may need to rise for the ‘middle income’ layers as well. 

The rationale for this is as follows.

Tax comprises not merely a burden as if taxpayers received nothing in return.  It is also the means of funding collective consumption and social insurance.  Despite complaints from the banks,  the recently-implemented Federal tax upon them was a way of paying for an effective ‘government guarantee’ – a form of ‘economic insurance’ which originated with the Rudd Labor Government during the Global Financial Crisis of 2008. (GFC) 

Morally-speaking, the ‘middle income layers’ should also show some solidarity with those who are struggling.  That’s part of the picture. But by ‘collectively consuming’ infrastructure, services and social insurance they also ensure they get a much better deal for their tax dollar than they would as atomised private consumers. Consider communications, transport, water, energy infrastructure, health and education infrastructure - and the costs of the associated services. And taxes also must be levied so citizens are ‘covered’ in the case of accident, illness, disability, job loss and so on.

Also there is a growing crisis of what some would call ‘corporate welfare’.  Ostensibly in order to be ‘competitive’ in attracting capital we have seen an increasing phenomena of tax payers, workers, citizens – effectively subsidising business. Governments ‘look the other way’ on tax evasion, tax havens, abuse of trusts and so on.  Or ‘talk the talk’ while taking only token action.  (Labor could do with some introspection here as well) 

Corporate Taxation falls lower and lower to ‘remain competitive’. A ‘race to the bottom’.  The ultimate consequence of this is that business is no longer paying its fair share for the services and infrastructure it benefits from.  That means workers and other tax  payers have to ‘pick up the tab’. 

But as well as being unfair, ironically this ‘comes back around’ to harm certain businesses as well.  Workers and taxpayers therefore have less disposable income , which means less scope for discretionary consumption.  This is why some businesses are beginning to worry about falling wages. Though others remain narrowly self-interested – looking only at their own sectional interests, and for instance supporting attacks on penalty rates.   

The other possibility is that crucial services and infrastructure will just be neglected.  But much of that infrastructure and services is a ‘drawcard’ for investment as well.  For instance an educated workforce. ‘Social disintegration’ can also mean added costs in the form of crime, ill health and so on.  This is without even considering the question from the viewpoint of striving for ‘The Good Society’ and not just ‘economic goals in abstract’. 

There are other possibilities for tax reform, also, not examined by Martin’s article. Those could be crucial in lifting Australia closer to the examples set by successful economies such as Germany and Finland. We will consider a number of those:

·         further (and genuinely substantial) cuts to superannuation concessions for the unambiguously well-off (the upper middle class and higher); with the potential to save tens of billions a year with that one measure alone

·          Fix the Company Tax rate at 30 per cent and take serious action on corporate tax evasion, use of tax havens etc.

·         Gradually wind back Dividend Imputation (tax credits ostensibly to stop ‘double taxation’ – the rationale of which has weakened with falling Company Tax rates);  That would have the potential to save $5 billion a year from reducing Dividend Imputation to a 75% rate alone in a first term Labor Government ; and much more over time depending on the reaction

·         Seriously restructure the PAYE income tax mix for progressivity ; including indexation of the bottom two or three brackets thereafter – to prevent future unfair bracket creep ;

·         Raise and restructure the Medicare Levy into a more-progressive multi-tier tax; and index to prevent unfair bracket creep ; Also cover Aged Care costs within the Medicare Levy – and raise enough revenue to eliminate unfair user pays costs for lower income, middle income and working class families , while improving services, and hence improving quality of life and happiness for residents , and those remaining at home.

·         Introduce a progressively-scaled ‘infrastructure levy’ to provide for all manner of infrastructure (transport, communications, energy, water etc) ; and to stem the trend towards privatisation – which is worsening cost structures and arguably fuelling nepotism.

·         Introduce a modest inheritance tax on inheritances valued over $2 million ; again indexed for progressivity ; perhaps excluding the family home

·         Introduce a ‘Buffett rule’ – or ‘minimum income tax’ affecting the wealthy

Importantly, though, Labor’s consideration of increasing the top income tax rate by 2 per cent is not substantial enough to make serious inroads into the deficit , provide for social wage and welfare expansion , or to render indexation of the income tax mix sustainable thereafter.  Compared with other taxes, income tax has great progressive and redistributive potential ; and its significant reform must be prioritised to achieve the best outcomes.

It’s encouraging that Labor is considering serious reform of the tax system for fairness.  We need such reform to promote distributive justice, and provide the means for social wage and social security expansion.  But Labor activists need to hold their politicians to a high standard as well.  There is a history of rhetoric on these issues, combined with a failure to match that rhetoric with the necessary action in the 'end analysis'.   Not every measure considered here will be implemented by a first term Shorten government.  But extension of progressive tax and associated social expenditure by 2 per cent of GDP, or $32 billion in a $1.6 Trillion economy, is a very good place to start.