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Showing posts with label neo-liberalism. Show all posts
Showing posts with label neo-liberalism. Show all posts

Monday, January 29, 2018

Left-Turn necessary for Labor at this year’s National Conference to end narrow ‘Policy Convergence’




by Dr Tristan Ewins ; ALP member of over 20 years

In 1998 radical American Leftist intellectual, Noam Chomsky made the telling observation that:

“The smart way to keep people passive and obedient is to strictly limit the spectrum of acceptable opinion, but allow very lively debate within that spectrum....”
 


Another name for this phenomenon is ‘Convergence Politics’.

In Australia there is ‘Convergence’ on the economy, with debates focusing on relatively minor differences ; but where heated debate on the so-called ‘Culture Wars’ fills the vacuum.

Every day in the mass media we are subjected to the positions of ostensibly “Centre Right” and “Centre Left” political parties.  But in reality the ‘relative centre’ has shifted way-right on the economy since the 1970s.  And dissent against that orthodoxy is minimal. Where it occurs it is modest.

The Hawke-Keating years saw convergence on ‘economic neo-liberalism’  in Australia – and there has been no significant turning back since.  Kevin Rudd attempted a Mining Super Profits Tax but was quickly ‘disciplined’ by the mining industry, and removed in short order with a ‘palace coup’.  For a time Sam Dastyari focused attention on corporate tax evasion.  But while corporate tax evasion arguably costs the Australian people tens of billions annually, in reality Dastyari’s proposals were minimal. (in the hundreds of millions)  Julia Gillard delivered a National Disability Insurance Scheme, but it was argued that  ‘savings’ had to be made elsewhere to compensate; the  logic of which was thereafter embraced more enthusiastically by the Liberals.

Under Bill Shorten Labor has committed to reforming Superannuation Tax Concessions, making some cuts in the applicability of Negative Gearing, and reforming Capital Gains Tax Concessions. ‘The Guardian’ argued in 2016 that these measures would save $100 billion over ten years.  This is substantial in the relative scheme of things ; but less impressive when you consider inflation.  Perhaps after that is factored in we’re talking about around 0.5% of GDP in a $1.6 trillion economy.

Shorten received a lot of Kudos from the Australian liberal left (for instance Fairfax journalists) for these ‘bold’ policies. But the fact these measures are considered so remarkable only underscores the reality of ‘Convergence Politics’ in Australia on the economy.

Meanwhile vigorous debate rages in the context of ‘The Culture Wars’. The Equal Marriage debate has been won.  But at a cost whereby Australia’s economic and cultural Right-wing are attempting to claim substantial Christian strata as a ‘base’.  (But this should not be taken for granted; it should be fought ; socially-conservative should not necessarily mean economically-conservative  or economically-Liberal ; nor should ‘Christian’ necessarily mean ‘socially conservative’) 

And now debate turns to the date for ‘Australia Day’ and the content of the National Curriculum – or at least how it is applied in Victoria. 

These debates are truly important. They are more than ‘distractions’.

After the ‘Australia Day debate’ the next logical step is for a Treaty with indigenous peoples.  And Conservative attempts to promote a National Curriculum which mixes Ideological Liberalism with uncritical nationalism – are deeply concerning.  But Labor’s position on the National Curriculum is also arguably too-conservative.   Arguably the National Curriculum should promote  ‘active, informed and critical citizenship.’  Which means deep and inclusive pluralism when it comes to informing students of the interests, social movements and ideological perspectives that have comprised Australian society. Here I am thinking along the lines of ‘post-Marxist’, Chantal Mouffe’s ‘radical pluralism’ , or ‘Agonistic Democracy’ ; and how those principles might be reflected in curricula.

 Nonetheless these debates are more ‘tolerable’ for capitalists and the wealthy than debates which question neo-liberalism, labour market deregulation (but no right to strike),  and ‘small government’.  (Though perhaps the debate on Education is less ‘tolerable’, here, than the Equal Marriage debate.  There is the potential to detract from narrow emphasis on ‘labour market demands’ ; and to encourage critical thinking and active citizenship which may meaningfully strengthen our democracy).  

The debates are substantial ; are not ‘merely distractions’ ; but the way public debate is presented these debates do constantly and over-the-long-term deflect attention away from a substantial, more wide-ranging debate on the economy, and especially economic power and inequality.   

Debates are also framed in such a way as to divide Labor’s traditional constituencies ; with the decline of class as a central ‘reference point’, and erroneous assumptions of ‘essential working class conservatism’ and ‘aspirational’ mentality’. ‘Political correctness’ is also regularly beaten-up in order to weaken Labor’s base via attrition.  In response Labor needs policies and language which promote social solidarity.

But anything which truly questions ‘Convergence’ is summarily dismissed as ‘Hard Left’.   Outgoing Labor President Mark Butler has made welcome demands for internal democratisation . But his description of British Labour’s Jeremy Corbyn as ‘Hard Left’ is regrettable. Corbyn is trending towards something more ‘traditionally social-democratic’ ; and has plans for railroad and utility re-nationalisation  that would ‘set a precedent’ whereby decades of privatisation are not necessarily permanent.  The policies are progressive, but not radical ; and Butler’s dismissal of Corbyn shows that ‘Convergence thinking’ still has a strong grip even within the ALP Left.

What would a ‘break’ from Convergence Politics look like?  The author of this article has been working on an updated  (unofficial)
“Model Platform” for Labor (currently in draft form) which is suggestive of a genuine reform footing for the ALP.  As a democratic socialist my long-term aim is the eventual surpassing of capitalism with a truly fair, rational and democratic economy. But even Marx understood that the transition from feudalism to capitalism took centuries. (though Marx did think socialist revolution a nearer prospect at the time)  And now there is the likely prospect ‘a clear and genuine break’ will not occur in our lifetimes.  Though the prospect of further crises and economic convulsions is nonetheless real.  Perhaps ‘barbarism’ is the more-likely prospect ; though we have to fight.

On the other hand, many on today’s Left still look to the Nordics for inspiration.  The Nordic model may not have ‘abolished’ capitalism ; but what some see as ‘the end goal’ is not everything. Billions of people will live in the context of historic compromises we fight for over the decades to come.  Their security, opportunities and happiness truly mean something with or without the over-arching capitalist context.  Yet sadly most in the Labor Party have not supported policies which meaningfully progress Australia towards something ‘Nordic-inspired’. 

The ‘ALP Model Platform’  (otherwise ‘For an Equal and Democratic Australia’) , suggests a short to medium term orientation, which breaks with ‘convergence thinking’, and has the meaningful aim of reaching the OECD average Tax to GDP ratio over as long as three terms of Labor Government.  That means raising progressive tax by $80 billion/year in today’s terms, or 5% of GDP.  (keep in mind the economy is worth over $1.6 Trillion)  It falls far short of the Nordics. (perhaps over $300 billion/year would be necessary) But it is suggestive of meaningful and substantial progress. (no more ‘one step forward, two steps back’ ; ‘the forward march of labour re-commences’)

What this means is substantial progressive restructure of Australia’s tax mix ; funding big improvements to the social wage, welfare, public provision of infrastructure.  It also means National Aged Care Insurance ; slashing hospital and public dental waiting lists ; industrial rights and liberties including a ‘re-regulation’ of the lower end of the labour market which delivers to the working poor ; strategies to improve life expectancy for indigenous Australians and the mentally ill ; progress towards free higher education ; support for mutuals and co-operative enterprise – with strategic public ‘co-investments’ which help these maintain the scale necessary to remain competitive ; an end to insufficient and ‘punitive’ welfare ; a big investment in public housing ; and much more.  These are central to the ‘ALP Model Platform’: a document intended to influence debate leading up to Labor’s National Conference this year in July 2018.

Those who want to support the Model Platform can ‘Like’ the ‘ALP Model Platform Supporters’ Page’ at Facebook and take part in debate there.

Labor has long been a ‘broad church’ with its own ‘internal pluralism’, and that is not likely to change.  But Labor should straddle the political ground across ‘traditional’ social democracy to democratic socialism ; and arguably there is also a place for what may be called ‘classical’ social democrats.  (radicals inspired by the original (largely Marxist) social democratic parties ; and those who followed in their wake)

Arguably a  strong radical-left can also contribute to the climate of culture and public opinion as well.  The Communist Party of Australia never had serious electoral success.  But it was a cultural and industrial power.  Ultimately it broke with Stalinism, also ; and in many ways that legacy is important and valid. 

In the US, Democratic Socialists of America (DSA) has been registering impressive gains in membership. They intervene within the Democratic Party ; but at the same time they are more broadly-based. They demonstrate how a Left movement can be a cultural, political and electoral force ; but not be restricted to a single electoral strategy.  DSA includes radical perspectives, but are not narrowly Leninst.  Perhaps a similar strategy could also ‘bear fruit’ in Australia ; with a strong challenge against ‘Convergence’ – which all progressives should agree has to end.


The ‘ALP Model Platform' Supporters’ Page can be found here: (PLS Join!)


https://www.facebook.com/unofficialmodelALPplatform/?hc_location=group

The current draft of the Model Platform can be found here:

http://leftfocus.blogspot.com.au/2018/01/for-equal-and-democratic-australia.html

Please join the supporters group ; and get like-minded friends to join if you support a strongly-progressive but realisable platform for the ALP.

Sunday, February 22, 2015

Crumbling Pillars of Capitalist Political Economy




In the following reflections, former Australian communist leader Eric Aarons considers the moral and practical shortcomings of capitalist political economy and its attendant Ideology; including the Ideology underpinning 'Austrian Economics' and the thought of Friedrich Hayek.


by Eric Aarons

 
The pillars of a building, a narrative, a culture or theoretical edifice are those parts of the whole  that keep the other parts  in their designated places. The many books Friedrich Hayek wrote outlining his economic, social and philosophic  views , of and for humanity, eventually prevailed over other theories and became dominant.  I therefore  re-examine  its  major beliefs and assertions –  the pillars – that sustain the capitalist system he championed, and which are daily crumbling before our eyes.

The first pillar is money

Hayek asserts that: ‘Most people are still reluctant to accept the fact that it should be the disdained ‘cash nexus’ which holds the Great Society together, [and] that the great ideal of the unity of mankind should in the last resort depend on [it]’. (LLL,2, 112)’

Money is of course essential in a commodity-based society; but are its possession and use uniformly  equitable and honest?  Why could Oxfam, unchallenged, reveal that: ‘Almost half of the world’s wealth is now owned by just one percent of the population [and] the bottom half of the world’s population owns the same as the richest 85 people in the world?’ (Jan. 2014).

Moreover, compared with earlier stages of the capitalist system, honesty today is very much wanting. For examples of top-organised fraud, recall the laundering of billions of dollars of Mexican drug money by HSBC (Hong Kong and Shanghai Banking Corporation), and the Libor scandal.

Libor referred to the internationally used and trusted benchmark, the ‘ London Inter-bank Offered Rate’ set daily by experts.  On a  day when  the person in charge was an employee of Barclays Bank which was suffering survival difficulties  in the developing  Great Financial Crisis, he skewed the benchmark  rate to favour his bank over others.  Though big fines were imposed, the practice spread worldwide, and even years later new instances of benchmark  corruption keep cropping up, while  new scams are continually invented.

To believe that ‘cash’ in these circumstances can unify rather than divide humanity is among the greatest of follies, especially considering the next pillar which is rotten from the start. 

In essence this means creating more and bigger capitalist organisations which, with globalisation, today embody the worldwide domination of possessors of ever larger slabs of capital,  and general wealth.

What else can this lead to but the conditions reported by Oxfam, that signify the increased concentration of wealth in the form of capital , which has reached a stage where capital is such a large proportion of the total wealth created, that governments cannot now provide, as they formerly did,  services, such as health and higher education, let alone the sums needed to ease the burdens of the disabled, or the facilities for learning, and character development,  now socially essential.

 It is called austerity.

Giving to those who already have

This is a second pillar of the existing capitalist system, stated by Hayek in these words: ‘… ‘such a system gives to those who already have. But this is its merit rather than its defect, because it is this feature which makes it worth-while for everybody to direct his efforts not only towards immediate results but also to the future increase of his capacity of rendering services to others. It is the possibility of acquisition for the purpose of improving the capacity for future acquisition which engenders a continual overall process in which we do not at every moment have to start from scratch, but can begin with equipment which is the result of past efforts in order to make as large as possible the earnings from the means we control.’ (LLL vol. 2, pp.123-4)

Who is it that does the giving?  Consumers of course and waged employees. But here we are talking about economic theory which purports to show that economic processes involving markets are objective because individuals, as such, and by and large, cannot alter what the larger forces of the markets have proclaimed. This is not fully true due to monopolies and cartels – especially in these days of globalisation, where the stated aims of many multinational corporations are to make these forms of economic plunder almost routine, as illustrated in the oil and gas areas today.

Even in Hayek’s much smaller scale he had put the case just as pertinently: ‘We (capitalists) can decide whether the material reward others are prepared to pay for our services makes it worthwhile to render them.’ (The Moral element in Free Enterprise, pages 229 – 236 of Studies in Philosophy, Politics and Economics, 1966)

Who is it that does the giving? The consumer and the waged employee of course. But here we are talking about economic theory which contends and purports to show that economic processes involving markets are objective because individuals, or groups of them, cannot alter what the larger forces of the markets  have proclaimed. This is not fully true because of monopolies and cartels – especially in these days of globalisation, where the stated aims of many multinational corporations are to make these forms of economic plunder almost routine.

Even on a smaller scale Hayek, addressing capitalist organisations in 1961, put their moral case just as pertinently: ‘We (capitalists) can decide whether the material reward others are prepared to pay for our services makes it worthwhile to render them.’ (The Moral element in Free Enterprise, pages 229 – 236 of Studies in Philosophy, Politics and Economics, 1966)

Compare this with his contention that market processes are impersonal  (The Constitution of Liberty, page 45).

Neo-Liberalism claims that human beings are (basically) rule-following animals

This is a claim without substance, and differs from every serious account of human nature that I have read. For instance, I recently reviewed a very useful and interesting book  (The Sixth Extinction, by Elizabeth Kolbert) which had a brief description of the human race:

‘The members of the species are not particularly swift or strong or fertile. They are, however, singularly resourceful. Gradually they push into regions with different climates, different predators and different prey. None of the usual constraints of habitat or geography seem to check them. They cross rivers, plateaus, mountain ranges. In coastal regions, they gather shellfish; further inland they hunt mammals. Everywhere they settle they adapt and innovate. On reaching Europe they encounter creatures very much like themselves, but stockier and probably heavier, who have been living on the continent longer. They interbreed with these creatures and then, by one means or another, kill them off.
The current system is beyond human control
In Hayek’s theory this is because capitalism is not a system formed by humans, but an entity that spontaneously formed itself. This is so singular (so idiosyncratic) a view that, unless grasped, it renders much of his early writing in The Constitution of Liberty and Law, Legislation and Liberty almost illogical. At least I found it so.
Conclusion: The pillars of the present system are crumbling; It is rickety (liable to break or fail) as Thomas Piketty so  thoroughly exposed.
 It requires major restructuring .