Search This Blog

Wednesday, March 30, 2022

Short term relief in Budget ; but No Long Term Plan

 



Dr Tristan Ewins

If Labor delivered a Budget like we’re seeing portrayed from the Coalition Government in Australia the media would proclaim they were ‘irresponsibly’ ‘spending like drunken sailors’.  But when the Conservatives are trying to revive their electoral fortunes the Melbourne Herald-Sun proclaimed “Hip Pocket Rocket” and “Millions Win”. In fact this is a Budget that effectively increases tax over the medium and long term, however. And much of the much-mooted  'generosity' is illusory. More on that later.

Fuel Excise will be cut with an anticipated 22c per litre drop in petrol prices.  Also interestingly the Government points to low unemployment ; which is largely because of stimulus created by Jobkeeper – albeit badly targeted stimulus. Does this mean they’ll admit they’re wrong on contractionary Budgets more broadly?  Probably not.  Wage subsidies, tax offsets and cash payments figure significantly (for instance a  once-off $250 payment for pensioners) ; but over the longer term this will not properly compensate stagnating wages ; and depressed pension and Jobseeker payments.  Indexation of pensions will continue, but this is merely ‘treading water’.   By default pensions increase as a proportion of average wages ; which means if inflation continues to grow it may continue to outstrip pension indexation.

Frydenberg believes low unemployment will drive wages.  This is possible because there is reduced supply relative to demand. But there are no guarantees: without strong labour organisation and leadership form Fair Work Australia stagnation could well continue.  And wage growth will probably not keep pace with inflation.  In any case the Coalition are luke-warm on wages ; and are just trying to weaken Labor’s narrative. There will also be a $10 billion investment in the Australian Signals Directorate over 10 years ; but there is little in the way of new initiatives in Aged Care, Education or child care for instance.  (except for some subsidies for initial study in aged care)  Previously announced improvements to Aged Care funding will continue ; but this is but a fraction of what was demanded by the Royal Commission.

The Conservatives have had their chance to respond to the Aged Care Royal Commission and are doing not nearly enough. We need to know that Labor will commit the necessary resources to implement quotas - which means more time on washing and dressing, more individual attention with feeding, and more time to interact and get to know residents; Also Labor needs to put a registered nurse in every home 24/7 ; improve wages and conditions for all workers (min $30/hour) ; and implement quality of life and happiness benchmarks that go beyond the basics to deliver happiness and quality of life as much as possible. All residents also need access to pleasant surrounds such as gardens ; and more to do than be sat in front of a television in a common room all day. Also prompt at home care for all who have the need and meet requirements with minimal waiting time. And phase out the user pays model by providing for high quality public, and subsidised not-for-profit and community based care. This will require several billions in new funding.

In the Budget there will be over $350 million in subsidies for apprentices and employers will be rewarded with $120 for every $100 spent training their workforce ; and other incentives for investment in technology.

Encouragingly Pensioners will gain on the medicine front ; with the number of scripts necessary before the ‘safety net’ kicks in reduced by twelve.  While a relatively small measure this is perhaps the most progressive announcement made by the government here.

Over $800 million will address “telecommunications blackspots”  ; while there will be a $480 public investment in NBN speed and reliability. This is necessary because the NBN was never done properly by the Conservatives in the first place.  $600 million will support growth in agriculture ; while $3.7 billion will fund faster regional rail.  Subsidies will also support regional manufacturing ; including the development of export markets.

Schemes will continue which enable 50,000 first home buyers to enter the market with a 5 per cent deposit.  But there is little for public, social or affordable housing – which could be crucial in any attempt to make housing more affordable by increasing affordable supply.  The government’s policies do not address the fact that increasing interest rates could provide a massive shock to personal and household budgets, sending mortgage repayments skyrocketing.  This could lead to another financial crisis and recession.

Importantly many of the cash payments benefiting low and middle income Australians will be a short term splurge ; designed to win an election. Improvements for low income earners and pensions will not be sustained over the long term.  Indeed while it will be increased for its final year, the Low and Middle Income Earner Tax Offset will be phased out in the following year and onwards; hitting low and middle income earners hard over the longer term. Long after the short term handouts fade into memory this could cost low income earners $700 a year.  Somehow most of the mainstream media didn't see fit to mention this.  So in fact this is a 'smoke and mirrors' Budget that tries to convince us of its generosity while hitting us hard into the future. It is no accident that low and middle income earners will be hit, while tax cuts for the wealthy will be pushed through. 

Overall this Budget provides a boost over the short term, but does little to address cost of living over the longer term ; and leaves wages ‘to the market’.  Structural improvements are necessary for Jobseeker and Pensions. And the tax system needs to be adjusted to benefit low and middle income earners relative to high income earners and the wealthy more generally.  Means tests could be eased, also, to make it more attractive for Disability Pensioners to enter the workforce ; and more could be done to help those people gain experience to ameliorate gaps in resumes.

Again, the Budget delivers some relief over the short term but does little long term about poverty, wages stagnation, and cost of living pressures.  Labor needs to do much better on Aged Care, Public and Social Housing, progressive tax system restructure, structural increases to pensions, and initiatives to get disabled Australians into fulfilling work –  with an easing of means tests for fairness. Medicare Dental could also feature ; and Labor could begin the process of winding back user pays in education by reducing student debts and significantly increasing debt repayment thresholds.  Victoria is also significantly short-changed on infrastructure ; and the government will have to find money from elsewhere to pay for transport infrastructure, especially roads.  Some problems never seem to go away ; such as state school class sizes and over-worked teachers.  But this seems to have ‘slipped off the radar’ in recent years.

Labor needs a long term plan ; with immediate reforms that are ‘locked in’ and hard to reverse.  This Budget will convince some ; but over the longer term so many questions remain unanswered.

Sunday, January 30, 2022

Albanese needs to ‘Step up to the Plate’ and not avoid debate on Aged Care, Health and Welfare Reform

 





Dr Tristan Ewins



Labor Opposition Leader Anthony Albanese has come under fire from the Conservative Coalition Government for suggesting on the ABC’s ‘Insiders’ program that extra funding may be made available for Aged Care, Health, and perhaps welfare reform. This in a context where billions of subsidies have been provided to businesses due to Covid, and yet many businesses who managed to remain profitable regardless of Covid have simply kept these subsidies provided for them in the form of pure profit.  While the Federal Government ruthlessly pursues welfare recipients over any debts incurred (and even some that have turned out to be unreal), corporations enjoy public money without accountability.

The simple fact is that public spending commitments in social services and infrastructure are not necessarily ‘irresponsible’ or ‘wasteful’.  Often Government needs to invest in the health and happiness of the people to ensure the best outcomes.  What needs to be understood is that social spending is a form of ‘collective consumption’ where we gain a better deal in areas like health by purchasing crucial services more efficiently and collectively as taxpayers, rather than being isolated and fleeced as private consumers.  Medicare and the Pharmaceutical Benefits Scheme are important examples of collective consumption.

Albanese has spoken of the “habitual buck passing” of the Morrison Government on Aged Care.  Failure to attract new workers into the field with fair wages and conditions, and respect for workers ; and failure to ensure necessary staffing levels including the presence of Registered Nurses – remain sore points even after the Conservatives’ response to the Aged Care Royal Commission.  The training, wages and conditions of Personal Care workers who help many elderly remain in the community are also in need of further funding ; and packages must be available to all with the need upon demand ; and without cruel waiting queues.

The reality also is that Aged Care reform needs to go beyond the bare essentials to address broader quality of life issues ; so that in the future Aged Australians with have access to social engagement ; and where those in residential care will enjoy privacy, access to information technology, access to gardens and pleasant surrounds.  They must not just be locked in their rooms or sat down in front of TVs in common rooms all day.  Our vulnerable elderly need social engagement.  Everything from discussing their lives to enjoying games, listening to music, or discussing the issues of the day.  Dementia training is also essential to ensure the best quality of life to those affected ; and those around them.  Quality of food also needs to be monitored closely ; and without meeting staff quota targets, Aged Care workers will remain rushed in the business of helping to dress and shower residents daily ; or may not be able to respond in a timely manner to situations such as where sheets are soiled.  The consequences of under-resourcing have been trauma and suffering for vulnerable aged Australians. 

Yes this will cost billions on top of those limited initiatives already announced.  But most of us will grow elderly and frail one day ; and even if ourselves we do not experience this, surely we will have family who are affected by a neglected Aged Care sector.  Rather than backing down, Albanese needs to ‘step up to the plate’ and confidently put the case for progressive collective consumption of Aged Care ; and a much better deal for both ‘consumers’ and for workers in the broader Health sector.

There will also be a significant backlog in waiting lists for supposedly ‘elective’ hospital procedures thanks to the pressure Covid has placed the health system under.  This was already a crisis ; but has been significantly magnified with Covid.  Medicare needs to be extended into dental, optical and prosthetics ; but the broader health system needs to be expanded to ensure timely care, breadth of coverage and quality of care.

Australian of the Year, tennis star Dylan Alcott has also highlighted the high unemployment levels (over 50 per cent) for disabled Australians.  The focus here was mainly on those with physical disability ; but exclusion from the labour market also applies to those with psycho-social disabilities.  Exclusion is a vicious circle which needs to be broken.  Sometimes it goes on for years. Often it is permanent.  Government needs to intervene directly to provide opportunity for all ; and employment needs to be made more viable by lessening means tests for Pensioners in the workforce.  Also there need to be viable career paths, and not merely ‘dead end jobs’.

Importantly, Labor needs to pitch to ‘average’ workers as well.  Labor needs to pitch to the majority to enjoy electoral success ; and provision for equity groups alone will not win government.  Delivering wage gains and improving the bargaining position of average workers in the labour market is important here.  As is a restructuring of the broader tax system: delivering distributive justice outcomes not only for the most vulnerable, but also the majority of workers.  Further ; improvement of the Aged Pension could act as a ‘bridge’ which enhances the case for reform of other pensions. Labor needs to build a ‘bloc’ based on solidarity and mutual recognition rather than allowing the Coalition to ‘Divide and Rule’ – which so often has been the case.

So come on Albo, ‘step up to the plate’.  A ‘small target’ can take us so far ; but as the campaign progresses voters will want a clearer sense of what Labor is going to do.  Labor will need to have answers.  And it must not ‘back itself into a corner’ where it cannot deliver significantly to its constituents.  Early signs suggest some hope.

Thursday, October 21, 2021

Rejecting the Cashless Welfare Card a Good Start for Labor ; but further cultural change necessary

 

                             above: Class Struggle has Always been Essential to Social Progress



Dr Tristan Ewins

 

It is now approaching a decade since Andrew ‘Twiggy’ Forrest was approached by then Prime Minister, Tony Abbott, to advise on the creation of a ‘cashless welfare card’.   While Forrest intended for all income to be ‘quarantined’ for use only in approved areas (like groceries), the Indue card which has emerged in trials set a floor of 80% of income to be with-held, and available for ‘approved purposes’. Aimed largely at indigenous peoples, and the welfare-dependent more broadly, the ‘Indue’ card follows after the failed ‘Basics card’ of 2007 - which attempted something similar as part of a government ‘Intervention’ into indigenous communities in the Northern Territory.  The newer ‘Indue’ cashless welfare card applies to the welfare-dependent more generally in the communities in which it is being trialled.  All those affected find themselves in the position of being restricted in what they can spend their money on, including on food and second hand goods. While a relatively small proportion are affected by gambling addiction or alcoholism, the ‘card’ is a source of humiliation and control over the welfare-dependent more generally.   Indue, which includes Conservative Coalition party luminaries as shareholders, stands to make a packet from the humiliation and micro-management of the every-day life of already-disadvantaged Australians.

Instead of humiliating marginalised Australians government ought instead be seeking to empower them, perhaps including through the mechanism of a Guaranteed Minimum Income (GMI).  Arguments against a GMI include the suggestion it may displace some existing pensions. (some of which are less threadbare than others)  But if a ‘no disadvantage’ test were applied this need not be a problem.  ‘Mutual obligation’ provisions have always been worrisome; as in practice they became a source of effective labour conscription.  This might also increase competition for jobs at the ‘lower end’ of the labour market ; and in the process reduce the bargaining power of those workers. 

A good alternative could be the establishment of a ‘Social Bill of Rights’ ; which would include rights to nutrition, adequate and dignified shelter, power, comprehensive health care, communications-related empowerment (eg: internet access), transport, education and social inclusion. A ‘Guaranteed Minimum Income’ could then be deployed alongside pensions and other programs intended to make this vision reality.

In the 18th and 19th Centuries the unemployed were driven into ‘Poor Houses’ where they were exploited, humiliated and robbed of their dignity.  There is a long history of ‘blaming the poor’ for their own disadvantage.  Centuries later some of the same assumptions remain in play beneath the surface.  Labor is arguing it will end the long Conservative experiment with the ‘cashless welfare card’.   The Coalition has so far not mustered the political courage (or political capital) to implement the program more broadly.  But as with ‘WorkChoices’ ; the old agendas continue to ‘fester’ behind the scenes.   The debate needs to be brought into the glare of public scrutiny and buried decisively.

Labor’s opposition to the Indue card is welcome.  But Labor needs a broader, stronger vision, including reform of welfare, minimum wages and labour market regulation, industrial rights, and embedded social human rights.  Its retreat on the tax debate has regrettably narrowed its options.   But a program for change could re-emerge through a determined reform of the social wage and welfare state ; which branched in various directions – including a Universal Aged Care Insurance Scheme, as well as improvement of pensions, with rescission of punitive mechanisms.  And a bold commitment to build a million new public housing units – as suggested by the Greens.  Labor really ought to be coming up with these kind of ideas on its own initiative.

There is a minimum standard of living which must apply to all citizens.  This idea of a ‘floor’ beneath which none are allowed to fall is reminiscent of the more progressive variations of the ‘Third Way’ which emerged in the 1990s.  But to mobilise as broad a base as possible, and provide distributive justice for all a more robust Social Democratic or Democratic Socialist agenda than Blairism is necessary.

It seems Social Democratic Parties have been on the defensive and on the back foot for decades. And indeed they have been.  For some the logic of retreat has been internalised.  We need to re-establish a notion of what comprises ‘progress’.  That means fairer distribution, industrial rights,  social rights, and the re-establishment of a robust mixed economy to help make this vision reality.  The Indue ‘cashless welfare card’ is the current ‘Conservative frontier’ ; where it attempts to reshape public ‘common sense’ on the further rescission of the welfare state, and the re-establishment of a ‘Poor House’ mentality ; which ‘gives the whip hand’ to employers through poverty, compulsion and labour conscription. 

Labor needs to go back to ‘first principles’ and work out the consequences of that.  Which is that being a ‘broad church’, Labor needs to be united behind ‘baseline’ social democratic and democratic socialist values and agendas.  Containing inequality and ending poverty ought be non-negotiable ; as should the proposal that this must be pursued through industrial rights, labour market regulation, a mixed economy, progressive taxation system, expanded social wages and welfare state provisions, and intervention into the capitalist system. (ultimately to end exploitation ; but also to ameliorate the impact of its crises upon workers and the vulnerable in the meantime)

The cashless welfare card needs to be defeated and exposed for the punitive mentality it embodies.  But we need a progressive movement which is willing to ‘go onto the front foot as well’.  A movement which has an idea what ‘progress’ entails, and which rejects a logic of endless retreat ; ameliorated only by the ascendance of ‘social liberal’ agendas as applied to gender, sexuality, and so on.  And in the context of the marginalisation of social conservatism, and its replacement by an ideology of neo-liberal cosmopolitanism. 

A ‘change of direction’ involves accepting class struggle as a progressive phenomenon ; an ‘engine of social progress’.  Only when that logic becomes entrenched does progress become undeniable. And while Hawke’s vision of “Reconciliation” appealed to many ; bosses soon became tired of ‘co-determination’ with unions once they had extracted crucial concessions.  And once organised labour lost its bargaining position. 

‘Reformists’ and Revolutionaries were once agreed on the progressive nature of class struggle.  Within Labor factions and amongst others we need, also, to combine behind such a shared notion. Bringing together Labor members behind the idea of a progressive class struggle is crucial ; an idea that we are all broadly in the same fight.  Reinforced by daily experience everywhere from Party branches to unions, and from student politics to the social movements.   There is a fight for the heart and soul of the ALP, and the heart and soul of Australia. There is no place for a punitive cashless welfare card in a progressive Australia.  May solidarity in the name of renewed class struggle relegate it to history.

Sunday, August 8, 2021

Labor Retreats on the Principle of Progressive Taxation


 

Dr Tristan Ewins

Last month Anthony Albanese announced that not only was Labor backing away from contentious reform of Negative Gearing and Capital Gains tax ; it was also prepared to back income tax cuts for the wealthy ; such that Australia will drift towards a flat and regressive tax regime with Labor’s implicit consent.  As Greg Jericho writes for ‘The Guardian’, Labor is supporting the entrenchment of a tax regime which will see those on below-median and below average wages effectively paying the same rates of tax as income earners between $120,000 and $200,000. 

Rob Harris – writing for the Sydney Morning Herald – explains that these tax ‘reforms’ will cost the Budget “an estimated $137 billion” over their first six years. Specifically, the 37 per cent tax rate will be abolished and a 30 per cent rate will apply to all income between $45,000 and $200,000.  This will occur at a time where ordinary Australian workers will need to service the massive debt induced because of Covid wage subsidies and other subsidies for business.  Those subsidies were (and at the time of writing still are) necessary ; but the debt should not be serviced in a regressive fashion which affects those least able to pay.  And because those on lower incomes spend a greater proportion of their incomes, policies which impact negatively upon them will be ‘bad for the economy’ as well.

Yes, there is a very small minority of wage labourers and others earning over  $100,000 a year. Maybe ten per cent.  But because of their relative privilege parts of this ‘labour aristocracy’ can be inclined to support economically-Liberal distributive taxation policies which minimise redistribution.   The vast majority of wage labourers and vulnerable Australians will not benefit from this policy.  In fact, the scope will be also reduced for improvement of social security and the social wage.  Labor will be restricted in its capacity to deliver reform of Social Security, Medicare, the NDIS, public and social housing, Aged Care.   In the field of social security, easing means testing of recipients with partners could also remove a perverse incentive for disabled Australians to shun relationships because ‘they cannot afford not to be alone’.  Reform of the Jobseeker Allowance (previously ‘Newstart’) is also long overdue and widely accepted.

With Aged Care, Labor is committed to staff ratios ; but to provide this without regressive user pays mechanisms the funding needs to come from somewhere else.  Either reform will be funded progressively or regressively ; or otherwise (even after the Aged Care Royal Commission) it will not happen at all.  After the Royal Commission findings ; which identified gross structural neglect of Aged Australians receiving care ; this would be a damning indictment of the major political parties in Australia who failed to mobilise public opinion around reform even after the shortcomings of the system were laid bare for all to see.  It is not too late to embrace a progressively structured ‘National Aged Care Insurance Levy’ to fund reform of Aged Care in this country.

True, Labor is also intending to reform labour market regulation ; but that in itself will not make up for the distributive consequences of this policy. It will be a case of ‘one step forwards, two steps back’ for Labor where nothing can make up for capitulation on the principles of progressive taxation and redistribution in the most basic sense.  Nonetheless if reform of labour market regulation is strong enough it could still make a difference. Specifically minimum wage rates need to increase significantly ; as well as Award rates for struggling workers – many of whom work in feminised professions such as Aged Care.  Teachers – many of whom also already work unacceptable levels of unpaid overtime – could also do with improved wages and conditions ; and this is essential to attract and maintain the most capable practitioners in the system.

Talk of ‘aspiration’ clouds the fact that Labor’s new tax policy will favour the top ten per cent at the expense of everyone else.  There was a time when radicals would have seen talk of ‘aspiration’ as a kind of ‘false consciousness’. But today Labor is so afraid of the ‘class warfare’ label that it shuns policies that impact even modestly on the top 10 per cent and in favour of everyone else.  Yet ‘flat taxation’ itself is in fact a kind of ‘class warfare’ against the vast majority of working people.

The fact is that in the last election Labor had strong but reasonable tax policies ; but failed to sell and explain those measures at crucial conjunctures. Chris Bowen said those who didn’t like Labor’s tax policies shouldn’t vote Labor. And when many voters failed to grasp Labor’s policies that is exactly what they did.  Furthermore, in the final days of the election campaign – with Bob Hawke’s death – Bill Shorten came across as flat, unconvincing and unemotional.  Despite his commendable work on the NDIS ; and the credit for embracing progressive tax policies in the first place – this fact remains.

Conclusions to the effect ‘it is impossible to sell tax reform’ neglect the fact that Labor failed tactically in mobilising public opinion.  Some Labor figures are reacting defensively to criticisms from the Greens to the effect that Labor is supporting a drift towards flat taxation.  But while the Greens can afford to be more radical because they depend on a narrower electoral base, that does not change the fact that Labor is capitulating on the most basic social democratic principles.  It does not change the fact that we are failing to sell policies that are objectively in the interests of the majority of Australians.

Again: where a bipartisan consensus on radically-regressive tax restructure is conceded, even where Labor does win with such a Platform it is probably a case of ‘one step forward, two steps back’.   Progressives have to actually deliver progress if they are to be seen as credible.  At the moment the best hope is a National Aged Care Insurance Levy, and strong labour market reform. Here’s hoping Labor ‘finds its way’ between now and the election.

Saturday, July 17, 2021

Disability Pensions in Australia: Where entering into a Relationship can be a Poverty Sentence

 

Dr Tristan Ewins

It is generally quite difficult to obtain a Disability Support Pension in Australia.  There are job capacity and impairment tests ; and many who are significantly impaired miss out.  But there is another problem that has been neglected in most debate.  Pensioners generally are assessed differently if they have a partner.  The consequence of this is that there is a perverse incentive for pensioners not to enter into a relationship or marry.  With the Disability support pension there can be a loss of income of around $200 a fortnight as a consequence of entering a relationship or getting married.  If the partner has a high income that is one thing, but many such couples could both be on low incomes or welfare.  Also: even if a person’s partner has a higher income, there is a problem with reinforcing dependence: with inhibiting the independence of Disability and other Pensioners.  When combined with other government measures: such as running a trial of the Indue Cashless Debit Card, or attempting to claw back money from the National Disability Insurance Scheme, it is clear we have a government which is trying to implement austerity aimed at the most vulnerable. 

The bottom line is that these arrangements condemn hundreds of thousands of disabled Australians to probable isolation and loneliness ; where they must fear the financial consequences of having relationships.

At the same time, Medicare is under attack.  Labor MP in Bendigo, Victoria, Lisa Chesters has observed how recent cuts to Medicare will “radically alter the cost of hundreds of orthopaedic, cardiac and general surgery items. “  As Chesters explained: “Patients now face the prospect of life-changing surgeries being cancelled at the last minute or being  landed with huge bills they didn’t expect.   And yet these matters have received very little attention in the mainstream media.

We need a Labor Opposition which defends Medicare and the National Disability Insurance Scheme. (NDIS)   But we also need a Labor opposition which goes beyond the strictly defensive ; and comes up with innovative and ground-breaking measures to extend the social wage and welfare state ; along with legislated wage increases for those on low incomes. 

This would inevitably involve tax reform. Ideally Labor should be aiming to reform progressive tax to the tune of 5% of GDP over 10 years, or at least three terms of Federal Government.  This would bring us closer to OECD average levels of tax and social expenditure.  Rolling back unfair means testing of pensions – including Disability Pensions - would empower hundreds of thousands of women and men with greater independence ; and if we are concerned about equity we need to reform tax in other areas for people with higher incomes.  It would also empower those people to enter into relationships without fear of destitution. Eligibility tests should also be relaxed so those incapable of full time work are not threatened with exclusion. 

The ‘LIFE’ (Living Incomes for Everyone) campaign is demanding a minimum $550 a week for all.  This would mean a great deal for job-seekers living in poverty, especially if combined with other measures like investment in public housing.  Effectively it would mean a guaranteed minimum income. (GMI)  Disability pensions specifically should increase further - by at least $150/fortnight in any case – rising to about $1100/fortnight.

No-one should be in the position of having to say they ‘cannot afford to enter into a relationship’.  The NDIS, despite its faults, was a big step forward for disabled Australians.  Instead of panicking over the cost we need to accept that providing services for these people meets what is perhaps the most defensible socialist principle: that each should contribute what they can, and receive what they need.  This principle needs to become a society-wide ‘common sense’ so that they are accepted even by many Conservatives ; as for instance occurred with the issue of Marriage Equality for those in the Queer communities.  But ironically there is no real ‘marriage equality’ for all if some need fear being thrown into poverty should they enter a relationship.

Progressives need to agitate to make this a real issue in the upcoming Federal Election.  The advocacy of Julia Gillard and Bill Shorten was crucial for the initial implementation of the NDIS.  The NDIS is not perfect, but is a vast improvement on the vacuum that existed beforehand.  Now we need additional policy champions within the ALP agitating to take the reform process further.  The Labor Aged-Care and Welfare Movement (LAWM) has adopted this as one of its objectives.  But we need more avowed Labor members to join our Facebook Group ; and to advocate for change.  Much as has happened with Rainbow Labor, Emily’s List, Labor for Refugees, and LEAN.  (Labor Environmental Action Network)  Currently LAWM exists at the level of Facebook ; but over the long term we want to achieve much more.  If you’re a Labor member and haven’t joined LAWM yet, pls do so.  And for Bill Shorten, Julia Gillard and others: Please take up this cause and make it an issue for the upcoming Federal Election.

Saturday, May 15, 2021

Government does not go far enough on Aged Care reform, while Labor is too-light on the Details

 

above:  Aged Care residents need  more to do than to be sat in front of a television all day


Dr Tristan Ewins

The recent Budget announcements are a mixed bag for Aged Care.  They represent a step in the right direction ; but much is still left to be done.  Specifically the Budget outlines an extra $17.7 billion over five years in new funding ; but with an upwards trajectory.  This is intended to provide an additional 80,000 home care packages over two years, while increasing the Basic Daily Fee by $10 a day. This will provide for things such as better food.   And average staffing levels will increase, with 200 minutes of personal attention allowed for, with 40 minutes of this with a registered nurse.   By comparison,  the Royal Commission concluded that residents require at least 215 minutes of personalised care a day.  (including 44 minutes with a Registered Nurse)  And while the Budget initiatives will see an increase in the numbers of  Aged Care workers attaining a Certificate III qualification, they have stopped short of mandating this as a minimum standard.   

The Conversation concludes that while the changes, including a new Aged Care act in 2023, are significant, they stop short of the ‘needs based’ model demanded by the Royal Commission.   We still need minimum staffing ratios.  Mandated personal time with staff needs to go further.  To attract and keep the best workers we need significantly better wages and conditions for all staff.  A landmark improvement in wages of at least 20 per cent, and end casualisation for those who prefer part time or full time work.  This is also a matter of fairness in relation to the demanding nature of the work.  We require more workers with a Certificate IV minimum.  We need as many workers as possible with a Certificate IV, and none with less than a Certificate III. What’s more we want better standards without falling back on user pays to provide for this.  In Paul Keating’s words, we don’t want people to have to ‘eat their house’ and die broke.   This also requires an improvement in the Aged Pension, with an easing of means tests. And we need to provide for a waiting list of around 100,000 for at home care. We also need stringent regulation to ensure new funding goes entirely towards staff, infrastructure and services, and not profit margins.   

There’s also the problem of Aged Care homes being ‘warehouses for old people’. People are just sat down in a common room in front of a television all day.  Tied funding needs to be provided for facilitated interaction ; outings for those interested and capable ; visits, gardens and access to a variety of books and information technology ; as well as interesting and engaging activities.  Once everything is accounted for we’re looking at something more like a minimum of $10 billion new funding every year indexed to account for rising costs and inflation.  This is necessary just to make up for the money withdrawn from the system in the form of ‘efficiency dividends’ over the past 20 years.   The public sector also needs to take more responsibility, with more public investment in aged care facilities.  For profit aged care does not have the interests of residents at heart, and even not-for-profits can be prone to diverting funds for expansion.

But by comparison Labor has made little in the way of monetary commitments in its Budget Reply.  Nonetheless it’s true, Albanese has hinted at ratios.  He argued that :  a Labor Government will deliver that care by ensuring that every dollar spent in aged care goes to employing a guaranteed minimum level of nurses, assistants and carers and to daily needs like decent food – rather than into the pockets of the more unscrupulous providers.”   This includes a registered nurse on site 24/7.  And a commitment to levels of personalised care recommendation by the Royal Commission. He backs the Royal Commission findings ; though he does not commit in areas where there was disagreement ; such as funding.  Albanese also mentions issues like the wages and conditions of staff, which the Liberals did not even touch upon.   The bottom line is that while Labor is saying some good things, it needs to commit on funding.  And that funding mechanism should be as progressive as possible.  For a start, tax cuts for the well-off need to be stopped or reversed.  It needs to provide at least twice the monetary commitment made by the Conservative Government in Aged Care ; or at least an additional $10 billion a year.  And that funding needs to kick in as a matter of urgency, as soon as possible.

Albanese is also highlighting Labor’s ambitious child care policy, as well as its high tech industry policy, an emphasis on wages, and a big commitment to social housing  - with 20,000 new social housing dwellings,  including 4,000 places for women and families escaping domestic violence.  There is no explanation how wages will be driven upwards however, or why social housing is thought preferable to public housing.  After all, public housing would ultimately be more affordable for recipients. If the Fair Work Commission will not lift Aged Care workers’ wages significantly enough Labor needs to intervene more directly.  And the NDIS needs support so recipients are not adversely affected by cost-cutting.

As the Federal election approaches, the issue of revenue and funding will become unavoidable.  A ‘small target’ will not suffice when people are demanding details. An Aged Care Levy could be progressively structured, and would probably be relatively popular if linked directly with Aged Care funding.   The Coalition has been driven by the findings of the Aged Care Royal Commission to go further than it is probably comfortable with.  But Labor needs to go further still if it is to address the findings of that Commission, and clearly distinguish a superior policy from that of the Coalition.

Sunday, April 18, 2021

Responding to ‘Cynical Theories’ – A Critique of Postmodern Theory

 


Pluckrose, Helen and Lindsay, James, ‘Cynical Theories – How Universities Made Everything about Race, Gender and Identity – and Why This Harms Everybody, Swift Press, London, 2020

Dr Tristan Ewins

“Cynical Theories” - by Helen Pluckrose and James Lindsay – is a thorough critique of postmodernism as exemplified by Foucault, Derrida and Lyotard from the 1960s onward ; as well as the Applied and ‘Reified’ (in the authors’ words)  postmodernist intellectual movements which have followed.  This is a response that book.

The period of ‘high postmodernity’ saw thinkers like Foucault, Derrida and Lyotard adopt an approach of irony and ‘playfulness’ in response to capitalist domination, the decline of communism as a perceived alternative, and the hopelessness which followed.  The ‘applied’ phase sought to apply postmodernism to concrete issues, and in this sense saw a re-emergence of some kind of hope on the Left after the decline of communism.  Meanwhile what the authors call the ‘reified phase’ saw postmodern Theory increasingly seen as representing ‘The Truth’ about society, which cannot be questioned.  The original postmodernists were sometimes criticised for taking deconstruction too far, or because they could “afford” to be ‘playful” and “ironic”.  (being white, middle class and male)  (p 48) The objective reality of certain oppressed groups was to be accepted ; and not subjected to deconstruction.  ‘Reconstruction’ was seen as being as important as deconstruction.  (not entirely a bad thing!) What has come to be described as “Standpoint Theory’ has seen an abandonment of ‘scientific truth’ and its replacement with group experience.  What some people call ‘Identity Politics’. ‘Standpoint theory’ has it that people are defined by their social location in a landscape of privilege and oppression.

Indeed science, empirical knowledge and notions of ‘progress’  are sometimes seen as part of the “Western Enlightenment’ tradition ; and that is dismissed as an Ideology of Western domination.  As well as being oppressive of ‘other ways of knowing’. (for example mystical spiritual traditions, paganism, witchcraft)   In reality these traditions should also be open to criticism ; but the Enlightenment saw a general scepticism about ‘the spiritual’ ; and an unwillingness to engage.  (though arguably if the Enlightenment should be subjected to criticism, so too should ‘other ways of knowing’)  Science especially is seen as holding great “prestige” ; and that can be a cover for domination.  (as in the past, where racist colonialist discourses were legitimised (falsely) in its name)  Certain racial, sexual, gender and other groups are seen as oppressed by dominant discourses ; and therefore are represented as ‘authentic’.  After Foucault ; ‘Power’ is seen as operating in all discourses and social relationships ; sometimes rendered invisible or obscured by dominant ideologies.  Many also accept Derrida’s critique of ‘binaries’ such as sex (male/female) which are maintained through language ; and believe those binaries need to be ‘blurred’, ‘disrupted’ or ‘turned on their heads’.  Hence there has arisen notions of ‘Intersex’ and ‘Queer’ sexuality which are not ‘heteronormative’.

The authors object to the way in which this ‘postmodern Ideology’ is enforced.  While they identify ‘applied postmodernism’ and ‘reified postmodernism’ as being intolerant of debate ; ostensibly to prevent hostile discourse causing trauma to marginalised groups ; instead they promote liberal notions of free speech.  Here, ideas must be subjected to criticism if they are to develop and evolve. Marxists would argue that the “dialectic” must be enabled to do its work through open class struggle.   And they see dialectical logic at work in other social relationships as well.   

Suppression of debate is counter-productive.  This reminds the reader of the stance taken by communist, Rosa Luxemburg in supporting free speech in Revolutionary Russia ; just as the Bolsheviks were consolidating their control. For the authors the ‘authoritarianism’ of postmodernism runs parallel to that of Communism.  That many communists (Martov, Kautsky, Luxemburg) opposed the suppression of the working class ‘supposedly for its own good’ is not acknowledged ; and it can be assumed that the authors simply haven’t engaged with Marxism in such a way as to be aware of this diversity.   The authors also assume capitalism is ‘self-correcting’ ;  going ‘hand in hand with Liberalism.    But capitalism makes the same old mistakes – overproduction, monopolism, planned obsolescence, gross inequality. There is a self-correcting element in liberalism – interpreted as liberty - but liberty can be applied to socialism as well as capitalism.

In the name of liberalism, the authors also defend universalism, science and secular humanism. They believe “truth” can be arrived at via scientific/empirical method, and that science points towards our common humanity.  Hence ; although a ‘scientific Ideology’ had been distorted in the past to justify colonialist racism ; eventually the rigorous and authentic Scientific Method itself helped break down the very Ideologies of racism which previously tried to use science as a ‘cover’. Here they actually share cause with orthodox Marxism. For many postmodernists, however, oppressed groups have their own “ways of knowing” which only they have access to ; and which need to be empowered for their liberation.  Here the oppressed must speak for themselves ; hence diversity quotas and the like. 

In response it could be argued that highly developed empathy enables some people to identify with and begin to understand the positions of oppressed groups and individuals.  There is the Weberian notion of social-scientific ‘Understanding’. (Verstehen)  Also some arguments deserve to be heard because of the quality of their arguments, and the broader social urgency ; as opposed simply to the Identity of the speaker.  Finally ; ‘white’, ‘male’ and ‘straight’ people have the potential to develop discourses of self-understanding which do not simply reinforce or render invisible previous binaries of domination.  For the authors such perspectives should be rigorously criticised ; but not silenced. For instance: Whereas it might be useful for a white male to subject himself to criticism using Feminist methods ; he should be able to arrive at critical self-understandings of his own as well.  He should not be banned from speaking for himself because in some contexts he is seen as enjoying privilege. But he must listen to Others also.  At the end of the day, however, ‘inclusion’ brings us into relation and dialogue with one another, and that itself can lead to ‘progress’.

“Applied” and “Reified” postmodernism attempt to read racism, sexism and prejudice into all manner of discourses.  Often this simply involves rigorous analysis revealing past prejudices ; which can lead to recognition, and ultimately healing.  A ‘critical’ perspective can simply involve SENSITIIVTY to the perspectives of Others.  But on the other hand it can be taken to extremes ; where any ‘slip’ can lead to ostracism, or even the destruction of careers.  As the authors write:

“At best, this has a chilling effect on the culture of free expression…as good people self-censor to avoid saying the ‘wrong’ things. At worst, it is a malicious form of bullying and – when institutionalised – a kind of authoritarianism in our midst.”   (pp 14-15)

Furthermore:

“We see radical relativism in the form of double standards, such as assertions that only men can be sexists and only white people can be racist, and in the wholesale rejection of consistent principles of non-discrimination.  In the face of this, it grows increasingly difficult and even dangerous to argue that people should be treated as individuals or to urge recognition of our shared humanity in the face of divisive and constraining identity politics.” (pp 17-18)

It is desirable to include marginalised groups.  And efforts must be made to create a welcoming environment. But representative democracy is also about  electing a person who has the belief systems and policies which accord with one’s own beliefs and interests.  Or at least it should.  (there is a ‘tribal’ element to politics also)  Quotas can potentially prioritise representation of groups over representation on the basis of preferred ideology and policy.  Marginalised groups can be included via various bodies ; such as the ‘Voice to Parliament’ suggested for indigenous Australians.  They can also be included via ‘deliberative democracy’ and ‘co-determination’. And affirmative action for women can proceed in the form of reserved seats in parliament ; so there is still a contest of ideas and values during pre-selections.  But where people no longer have the choice to elect the person who best represents their values and interests – on the basis of the quality of their politics and policies -  representative democracy is circumvented.

All that said, there is a history of racism ; expressed through Colonialism, Imperialism, Capitalism, Slavery.  And there is a history of sexism as expressed through a Patriarchy which employed a binary Ideological logic to render women (falsely, but according to its premises) irrational, fragile, unsuited to public life, and so on.  In the West, much of this Patriarchy has been broken down by Second Wave feminism.  But women are still excluded from many professions ; are disadvantaged in the labour market with the devalorisation of professions which are dominated by women (eg: aged care) ; and in many Western countries women are still restricted in their participation in public life, and the relative levels of  prestige of some women’s sport.

Finally, until relatively recently homophobia was entrenched in law and culture ; but is now being broken down in popular culture, with gay marriage, and the permeation of postmodern scepticism of strict binaries through broader society.   The authors argue, however, that it is liberalism which has seen non-hetero-normative sexualities accepted as ‘natural’ and ‘normal’.

Traditionally, postmodern approaches have been critical of ‘metanarratives’. (eg: Western Progress through Liberal Capitalism and Science; or the Marxist critique of Capitalism and of Class Struggle leading to socialism)  The authors acknowledge that metanarratives can be restrictive and exclusive ; but they believe ironically what they call [postmodern] Theory has become a metanarrative of its own.  In reality we need metanarratives to contest economy and society in a globalised world.  If Leftists do not have their own metanarratives, right-wing metanarratives will ‘fill the vacuum’.  But we must be careful not to let metanarratives silence more localised narratives.

As conceived of by Marx, the working class is still the majority class world-wide. Many postmodern approaches tend to downplay the unifying power of class, as opposed to tensions based on race, sexuality, gender and so on.

Class is often problematized as a matter of equalising life-chances through educational equal opportunity and so on.  But class oppression is different. By its very definition it involves exploitation, and is anti-democratic with regards economic life.  Also, by its nature it involves the majority of human beings - who are engaged in capitalist production. Perhaps the working class might no longer be considered the ‘universal historic subject’ as once assumed by Marxists.  The working class needs allies.  And oppressed minorities could do with the solidarity of a conscious, organised working class.  Above everything the working class needs to recover its sense of self.  If that condition is satisfied the working class is still strategically positioned – industrially, culturally, electorally – to exert significant power.   But this involves a metanarrative of socialism.

For Marx Ideology served the interests of the Bourgeois Ruling Class.   It ‘naturalised’ capitalist social relations through nationalism, much of religion, Liberal Ideology ; and it obscured working peoples’ self-interest.  By contrast, the common Theoretical approach is to see discourses of domination which are often ‘invisible’ , but from which white, male, cis-normative people benefit from.  Here, Ideology is seen as benefiting the majority, including working people.  (as opposed to benefiting mainly the ruling class minority)

There is truth in the argument that Power can be subtle, and is not at all limited to class. The Foucauldian approach traditionally neglects class and a broader critique of capitalism.  Certainly it has no sense that capitalism could be ‘negated’, except in localised ‘micronarratives’.  But it has its strengths.  Language is not everything. There is a reality outside of language. But language is still powerful ; it can be a vehicle for Power.  It can be laden with Ideology.  It is a PRACTICE which influences how we see ourselves and the world around us on an everyday basis.  Giddens would have it that we are all interpreters and active participants in the shaping of  language and not just passive recipients. Though Ideological relations of domination and manipulation should not be understated ; even though they are not absolute. Though language and knowledge are not necessarily oppressive in of themselves. In the right hands, and of the right quality, they can be liberating.

But from a Marxist perspective, the working class is still an exploited class ; and a class which widely suffers alienation. (ie: trauma from the menial, physically demanding, meaningless and unfulfilling, repetitive nature of much work)  Inequality has reached alarming levels ; yet somehow the working class is ‘invisible’ in much postmodern discourse.

The authors are at pains to reject Marxism ; and see both Marxism and Postmodern Theory as ‘authoritarian ideologies’.   While they see Marxism as ‘in decline’ from the 1960s, Marxism continued for several decades ; and morphed into the New Left and Eurocommunism for example. Socialism progressed for several decades in Scandinavia ; there were class struggles in Britain and France.  Sometimes Marxism morphed into Postmarxism and the works of radical theorists such as Chantal Mouffe.  Socialism should not be ‘written off’ with liberalism ‘the only contender left standing’.  But neither should liberalism be written off.   Whether we describe it as ‘liberal socialism’ or ‘libertarian socialism’ (a term sometimes applied to Luxemburg) there is a socialism which is possible that is open to criticism, development, and account of new realities.  Though that socialism should nonetheless ground itself in class struggles and other progressive struggles. (P 25)  

According to the authors (effectively by the words of Lyotard) postmodern theory “seeks not to be factually true but to be strategically useful: in order to bring about its own aims, morally virtuous  and politically useful by its own definitions.”  (p 38)  Theory SHOULD be useful.  It shouldn’t exist in a detached sense as if in some kind of ‘ivory tower’.  But just because sometimes “the truth” is hard to ascertain doesn’t mean we shouldn’t strive towards it, and apply even our own works to rigorous criticism.  It is potentially dangerous to suggest ‘striving for the truth’ does not matter.

In the Notes section at the back of the book the authors recognise that Critical Theory originated with the Frankfurt School, and included figures such as Jurgen Habermas – who was a defender of ‘the unfinished project of Modernity’ ; and who believed in the power of ‘Communicative Action’ to ‘reach understanding’ even in the context of pluralism.  It’s important to acknowledge this as there are realms of ‘critical theory’ radically at odds with the model put forward by the authors.  Habermas believed a ‘Perfect Speech Situation’ could result in a non-oppressive kind of socialism.  That is achieved by bringing various critical traditions – each with its own legitimacy and lines of empirical enquiry - into relation which each other.  This manifests as ‘liberation by consensus’. Which is possible because there is an ‘objective truth’ on human liberation which people can arrive at through communication.  The later Habermas doubted ethical consensus, but insisted there was a truth which could be ‘got at’ by relating to an objective world. This requires rigorous ‘dialectical’ testing of propositions. But that process is obstructed by the ‘colonisation of lifeworld by system’ ; where (non-linguistic) systems of power based on money, state and bureaucracy  get in the way of Communicative Action.  Arguably these are not merely matters of systemic logic ; but of class agency.  The working class must arrive at class consciousness (and socialist consciousness), and must organise in order to change the world.  The bourgeoisie, while sometimes captive to their own Ideology, are also often not beyond deliberately distorting the truth to preserve their position.  But limiting oneself to language ; as opposed to the objective functioning of capitalist economies ; can create a veritable “prison house” (Jameson) which limits clarity, perception and understanding.  For some however (eg: Mouffe and Laclau) the earlier Habermas is too optimistic. Mouffe proposes a counter-hegemony in the context of robust pluralism.   She doesn’t presume humanity to be capable of a rational consensus on values and socio-economic organisation. But she does presume a majority can accept pluralism on the basis of shared freedoms.

‘Intersectionality’ is seen as stemming from the work of postmodern feminist, Kimberle Crenshaw.  ‘Intersectionality’ is a powerful concept which has come to be deployed by Theorists to explain how people experience ‘intersections’ of multiple oppressions, determined by their social location and Identity. That includes race, gender, sexuality, disability, body type, class and so on. Hence  a black lesbian woman is ‘triply oppressed’.  In a sense this is nuanced ; as it accounts for multiple experiences and social locations.  By comparison, the original Marxism focused on the labour-capital dialectic.

Crenshaw wanted to both keep the Theoretical Understanding of race and gender as social constructs and use deconstructive methods to critique them.  She also wanted to assert a “stable truth claim” : that some people were discriminated against on the grounds of their racial and sexual identities, a discrimination she planned to address legally, using identity politics. She claims that identity categories “have meaning and consequences”. That is, they are objectively real.”  (P 57)    For the original postmodernists “endless examination and deconstruction of categories can enable us to liberate those who do not fit neatly into categories.”  (p 55)  By contrast, from a radical modernist perspective Gloria Watkins is a black feminist who criticises the quest for ‘unstable’ identities ; because this prevents oppressed people (such as black women and the working class) from forming an identity from which they can strive for liberation.  (p 55)   Crenshaw’s position can be seen, also, as a kind of response to those such as Watkins ; advocating social constructivism ; but also arguing those constructions have significant weight.

But the weakness of Intersectionality, and of Identity Politics more broadly is that it does not account for the true uniqueness of individuals’ experiences. For instance ; a white working class man who is part of the working poor could be worse off than a black middle class woman ; on account of poverty, class stigma, educational disadvantage, and a dead end alienating job.  Such nuances are not always considered when people are categorised according to ‘intersections’ which simply establish their Identity with regard various marginalised groups. People also have unique belief systems ; and this will affect their life experience as well.

On the other hand, there is the assumption that ANY relation between a “privileged” and “oppressed” person is one of “power imbalance”.  Because marginalised voices MUST be considered “authentic” their interpretations are accepted without question, and are indisputable.  The authors conclude: this “leaves wide open the door to the unscrupulous.”  (Pp 132-133)   However, Crenshaw writes: 

“social power in delineating difference need not be  the power of domination ; It can instead be the source of social empowerment and reconstruction.”

Hence a break with 'foundational' postmodernism even while continuing it in other ways.      (P 125)   According to this logic, antagonistic identity groups can reconceive of themselves, and in-so-doing resolve their antagonism constructively.  This is important, as it suggests dominant groups can reconceive of themselves in ways which recognise the Other; and when this is acted upon it can end relations of oppression.  On these assumptions there is nothing ‘essentially bad’ about ‘whiteness’, masculinity etc.  

The oppression of the working class, however, will not end under capitalism as the labour-capital relationship has a mechanism of exploitation which is intrinsic to it. Though relations can be reconceived in ways which lead to historic compromises that advance working class interests compared with neo-liberalism.  (eg: Nordic Social Democracy ; though even here Social Democracy is in retreat)

Applied postmodern theory tends to see ‘system’ (via knowledge/language/power) as being the problem more so than willing, dominating agents.  And again, from a Modernist perspective Habermas also saw [capitalist] system as ‘colonising’ ‘lifeworld’. The reality is an interplay of system and agency. Capitalism itself has systemic imperatives ; and those imperatives have achieved a global scale.  At the same time capitalist Ideology is hegemonic and virtually unchallenged. Even Social Democratic parties have accepted the retreat of the welfare state, not only embracing the consequences of capitalist imperatives ; but sometimes even internally embracing aspects of its neo-liberal variant.  But amidst all this there are political actors.   The bourgeoisie understands its interests and is organised.  Those oppressed under capitalism must also collectively perceive their position, and organise for socialism.

There’s nothing wrong with an applied theory which aims to inform historical agents who will change the world.  The problem is an arbitrary hierarchy of perceived identity-based oppression – which does not strictly accord to the real world.  That is, the categories aren’t sufficient to explain things in their complexity ; and some are often arbitrarily prioritised over others.  Reality is more complex . And along the way the objective reality of class has been abandoned ; or treated like ‘just another identity’. This is important because CLASS is a social relationship and potential identity and source of consciousness which can unite the majority rather than just dividing them against each other.  Sensitivity to the problems of various identity groups could be integral to healing the divisions within the working class. But class is the central social relationship of capitalism. Social Justice activism has been so successful that in some cases it has turned oppression on its head.  But ‘turning oppression on its head’ is not the same as abolishing it. The way forward is to roll back all oppression and alienation ; and work towards the kind of society where all can lead happy, free, meaningful lives – without oppression, alienation, exploitation or prejudice.


Bibliography ;

Pluckrose, Helen and Lindsay, James, ‘Cynical Theories – How Universities Made Everything about Race, Gender and Identity – and Why This Harms Everybody, Swift Press, London, 2020