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Showing posts with label Swedish model. Show all posts
Showing posts with label Swedish model. Show all posts

Sunday, July 16, 2017

Unpublished Letters from a Labor Activist ; March-July 2017




The following are a series of unpublished letters to ‘The Age’ and ‘The Herald-Sun’ from Labor activist Dr Tristan Ewins from March to July 2017.

They are presented chronologically.

Increasingly I'm finding it impossible to get any of these letters published ; I hope at least they may spur some discussion here at this blog.
Please feel welcome to link to this page via Facebook.




The position of modern Christianity is complex


(Herald-Sun, March 2017) As a democratic socialist I am loathe to concede anything to Andrew Bolt.  But regarding his recent op-ed on Christianity I had to concede there is a growing ‘cultural assault’ against the faith.  In some quarters there seems to be a double standard in how Christianity is treated in comparison with other faiths.  During the French Revolution – which Bolt alludes to – Catholic clergy enjoyed entrenched privileges as the so-called ‘First Estate’.  More recently (from the 1930s) the Roman Catholic Church was involved in fascist regimes in Spain (Franco) and Austria (Dolfuss)   The Papal Encyclical “Rerum Novarum” also alienated many Catholics from the Left.  But there is more to Christianity than this.  Churches – including wings of Catholicism – have been vehicles for progress also.   Consider Martin Luther King Junior,  Desmond Tutu, Oscar Romero ; and even consider Francis’s attempts to reform Catholicism.  And across the country various churches and various denominations have embraced causes like indigenous rights, the environment, civil rights, peace, the fight against poverty and homelessness, queer rights and so on.  Today’s diverse Christian church is not uniformly the bastion of privilege and conservatism it once was.  That said, Christians must enjoy the same dignity and liberal rights as everyone.



What’s wrong with the Swedish Model?

J.Muir (Herald-Sun ,Letters 18/4) suggests those who look to the Swedish (democratic socialist) model have let go of all “logical thinking”.  Yet for decades Sweden’s famous welfare state has been the source of greater happiness, equality and security compared with the US, Australia and Britain.  At its height the ‘Swedish model’ also achieved close-to genuine full employment (hence ‘running the economy at full bore’) ; and that was comprised largely of high wage jobs thanks to Sweden’s interventionist industry policies.  The Swedish welfare state and industry policies also meant Sweden could revolutionise its industries without displacing and impoverishing workers in the process.  The Swedish welfare state’s universality also meant there was little in the way of resentment from the well-off.  All this was not a disincentive to work ; but nonetheless Swedes have enjoyed very high quality public health, education, and social security systems.  What is ‘illogical’ about all that?



What does Peta Credlin know about ‘Australian values’?

Peta Credlin (Herald-Sun, 23/4) argues we must “Stand Up for our Values”. (that is, ‘Australian Values’) But who determines what Australian Values are?  Traditionally we have thought of ourselves as an egalitarian nation.  Historically that was confirmed with our labour market regulation (with a fairer go for the low paid) ; through the rights enjoyed by workers and their trade unions ; and through our progressive welfare state (including Medicare), and our mixed economy. ( which involved cross-subsidies for the poor)  Further ; Australian POWs in Changi survived through human solidarity ; which is the opposite of the ‘survival of the fittest’ Ideology preached by today’s Right-wing. Those egalitarian values have been under siege for a long time now ; including from Peta Credlin’s Liberal Party. Just remember when you hear Conservatives speaking of ‘Australian values’ that we don’t all agree on what those values actually are.


Bolt wrong on Education Again

Andrew Bolt (4/5/17) argues there is at best little connection between levels of funding for schools and actual results.  And yet there has been a trend to a growing defection of parents to the private school sector on account of better infrastructure (eg: libraries, computers and so on), as well as better student to teacher ratios. Some private schools also offer better wages and conditions which enables them to ‘take their pick’ when hiring staff.  Clearly the emphasis on ‘teacher quality’ is a means of distracting from the question of funding ; providing an excuse for education austerity which is destroying ‘equality of educational opportunity’ in this country.  Here Malcolm Turnbull’s ‘Gonski 2.0’ needs to be considered in its context of an actual multi-billion dollar  annual cut compared with the original Gonski agreements. Further: If we are to attract the best teaching staff arguably we need to hold the profession in higher esteem. And more could be done, here, with reductions in course fees and improvements in wages, conditions and career paths for teachers. Instead the government is putting tertiary education fees and repayment schedules through the roof : even for those on roughly HALF the average yearly salary.  (ie: approx. $40,000/year)



Is Turnbull really ‘Turning Left’?  Ask Abbott: ‘What happened to Catholic Economic Centrism?”

Andrew Bolt (11/5) claims Turnbull and the nation are ‘turning Left’ on the basis of insufficient austerity and new tax measures intended to ameliorate the deficit. In reality, however, Turnbull is hitting students and the unemployed hard – with policies which target students on half the minimum wage for thousands ; and which could force low income earners to exhaust their meagre savings before receiving Newstart only after 6 months should they lose their job.  Despite this the Budget does move the Government closer to the relative economic centre in the sense that overall cuts are ameliorated by comparison with the disastrous Hockey Budget of 2014.  And there is finally acceptance that there was ‘a revenue problem’.  Ironically,  the “Abbott Purists” will likely claim the austerity has not gone far enough. Though they may be upset by the attacks on Catholic education.  But it is THEY who have abandoned ‘traditional Catholic Centrism’ on welfare, labour and the economy.  (a tradition which interestingly had parallels with other ‘Christian Democratic’ parties in Europe)  By comparison Abbott, Bolt and others would have us drift into a US style scenario with a class of utterly destitute, and a class of working poor.



Robert Menzies was a Social Conservative ; But might appear ‘leftish’ on the Economy by Today’s Standards ; Bolt wrong again

In the Herald-Sun (May 22nd) Andrew Bolt compares today's Liberals with Robert Menzies - and finds them wanting. Specifically he infers that Menzies would have nothing to do with narratives of fairness. (narratives Bolt rejects)  But in reality Menzies presided over a much more steeply progressive income tax system than we have today - with a top rate around 67 per cent.  Both Labor and the Liberals have moved way-Right on the economy since then.  In reality 'market forces' do not guarantee just economic outcomes. And as against narratives of meritocracy, most of the very rich inherit rather than earn their wealth.  Inequality is not 'natural' or 'inevitable'.  But a degree of redistribution can ensure equal opportunity in education, equal outcomes in health, and 'baseline' living standards that no citizen should be allowed to fall beneath. It is a matter of compassion ; but also of decency and justice. Australia's egalitarian traditions and culture are worth saving. Bolt is wrong.



Slashing the HECS Repayment Thresholds is Unjust by any Reasonable Measure

Ross Gittins (‘The Age’ , 24/5) rightly condemns the Federal Government’s assault on job seekers, including requirements that those people exhaust much of their personal savings before receiving a cent. It received very little coverage in Budget analyses.  Perhaps there is a cold calculation that ‘no one has sympathy for job seekers’ given the constant resentment and callousness whipped up in much of the monopoly mass media.  There wasn’t a word from Labor that I saw. But I don’t understand Gittins’ attitude towards students.  Someone on $42,000 a year is better off than a person struggling to feed themselves on Newstart.  But the Government is abrogating basic principles of progressivity by reducing the repayment threshold to $42,000/year ; or approximately only half the average wage.  Those on half the average wage are not receiving a significant financial benefit compared with workers and tradespeople who had not attended university.  And given other pressures – including housing unaffordability and a rising cost of living – surely HECS repayment thresholds and rates need to be fairer.  Just because you can make ends meet doesn’t mean principles of progressivity and fairness should not apply.  The minimum repayment threshold should be raised to at least $60,000/year ; then indexed.


Root and Branch Reform of Tax and the Social Wage Necessary

“Peter Martin (‘The Age’ 25/5) makes a good case to get rid of poverty traps in the tax and welfare systems which hurt vulnerable groups like single parents and provide little incentive for work.  We have a tax system which needs root and branch reform.  The whole tax mix needs to be restructured for fairness ; as do the PAYE income taxation scales on their own – which thereafter ought be indexed.  Dividend Imputation could be gradually withdrawn to a 50% rate (maybe more over time), saving  $10 billion a year. Superannuation concessions could be withdrawn for the wealthy , but also the upper middle class ; saving over $20 billion.  A ‘Buffet Tax’ (minimum income tax for the wealthy) could bring in over $2 billion.  The Medicare Levy could be reformed on a progressive scale ; where everyone contributes – but by an increasing proportion depending on income.   Finally inheritance taxes ought be reconsidered for those with truly large inheritances ; say over $2 million.  All this could be passed on with a mix of tax cuts for low to middle income earners, improvements in social security , and improvements in the social wage.  (including infrastructure, health and education)”



Terms like ‘Class Warfare’ and ‘Soak the Rich’ Demand Criticism

Peter Hartcher (‘The Age’ June 13th) seems critical of the recent upsurge in Left-wing politics, with good performances by Sanders and Corbyn , and the return of democratic socialism to ‘respectability’. Terms like ‘class warfare’ and ‘soak the rich’ are thrown around without any real critical consideration of the meaning, assumptions and historical context behind that kind of language.  Progressive taxation hence appears summarily dismissed, despite the fact  that taxes were effectively more steeply progressive under Menzies then they ended up being under any government since Hawke and Keating.   Regressive taxes, ‘small government’ and austerity are today considered ‘natural’ despite impacting negatively against the majority on lower and middle incomes. There is no talk of ‘class warfare’ where it is workers and the vulnerable under attack.  But somehow a fairer spread of taxation is dismissed as ‘redistribution’ – which apparently has been established as a political and economic ‘cardinal sin’.  Australia needs a new culture of social solidarity – where everyone contributes on the basis of their capacity – and where health services, aged care, social security, education, social and public housing – as well as transport, energy and communications infrastructure and services – are made fully available on the basis of need.



Terms like ‘Labor Lite’ to Describe Turnbull Expose Loaded Political Assumptions around the Australian Economy

Andrew Bolt describes Malcolm Turnbull as ‘Labor Lite” - ‘big spending’ and ‘high taxing”.  (3/7)  But in reality taxes and spending have over the long term been falling effectively by tens of billions under both Labor and Liberal Governments.  Compared with the OECD average Turnbull is low spending and low taxing.  Policies that Abbott and Bolt describe as ‘Left’ would be considered ‘neo-liberal right-wing’ in much of Europe and Scandinavia – including by Christian Democrats and Centrists.  Is so-called ‘small government’ really a good thing?  Paying for goods and services: including health, aged-care, education, infrastructure – through progressive taxes – gives citizens in general better value for money than if they paid for these as private consumers.  Look at the outrageously-expensive US private health insurance system for proof of this. This ‘social wage’ also means we don’t have a US-style underclass.  To get an ‘angle’ from which to undermine Turnbull Abbott is also betraying the traditions of Christian Democracy and Catholic economic Centrism which have historically supported welfare and labour market regulation.



What does Bolt know about Socialism?

Andrew Bolt (13/7) writes of Venezuela that it should “be taught in schools” how “socialism ruins countries”.  But surely that kind of official indoctrination would itself be a hallmark of totalitarianism? Instead we need a curriculum that informs students about the interests and value systems of both the Left and the Right , and of different social groups – and encourage them to make their own commitments – in an active and informed democracy. As for socialism: done correctly it has resulted in full employment, high wages, equal educational opportunity, and health care based upon need.  Consider Sweden, Finland, Denmark, Norway. But capitalism increasingly survives on unsustainable private debt ; and ‘corporate welfare’ as big business escapes taxation for the infrastructure and services it benefits from. (the rest of us must pay)  Also there is abuse of market power in the wake of privatisation of natural public monopolies.  (eg: energy) ; and this is why those on lower incomes are suffering.

Saturday, October 15, 2016

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



above:  Tony Blair urges Bill Shorten to 'Return to the Centre'


By Tristan Ewins



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

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

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

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

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



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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Saturday, June 29, 2013

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.


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


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AUSTRALIAN SOCIALIST


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*Accord Politics

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* Theory of Value

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