CoVid 19 has hit the economy ; But where is the Recovery going to come from?

above: Australia Institute Economist, Richard Denniss

Dr Tristan Ewins

CoVid 19 has hit the Australian economy hard.   By some estimates the Australian economy will shrink by approximately 7 per cent in 2020.  Maybe more.   That’s a virtually unprecedented recession.

https://www.abc.net.au/news/2020-04-15/how-coronavirus-crisis-compares-to-1990s-recession-australia/12148020

Shutting down workplaces: hospitality and tourism, higher education and some manufacturing: comes at an enormous cost.

We can’t put a price on peoples’ lives and peoples’ health.  But many people will need to sacrifice to ‘spread the burden’ of funding recovery.

Some have suggested a ‘HECS-style loan’ for those unemployed as a consequence of this crisis.  Because this discriminates, it is unfair.  Richard Denniss – speaking on ABC radio – is correct about this.  Though I think he is wrong about HECS more broadly.  Income contingent loans to pay for government  support of individuals during the crisis would mean a veritable ‘labour market lottery’ as to who was left with debt.  But also ‘income contingent loans’ have a longer history of losing their progressivity as governments reduce thresholds to help pay for other endeavours – such as ubiquitous corporate welfare.

Also will the government temporarily increase corporate tax  during the recovery period to service debts incurred supporting the private sector during the crisis?

https://www.abc.net.au/radionational/programs/sundayextra/the-lasting-economic-damage-from-the-covid-19/12223194

The government’s stimulus has provided a lifeline for many.

But one rational assumption is that the economy won’t simply ‘snap back’ at the end of a six month period ; and as a consequence the government cannot afford to ‘step back’ and just let the private sector ‘fill the breach’.  The real economy doesn’t work like this.

In hospitality and tourism the structural effects on the economy could last quite some time. We don’t know whether there will be a ‘second wave’ or whether we will ‘break the back’ of the spread in this country.  But global travel will take years to ‘get back to normal’, and the US and the UK are still deep in crisis.  The ACT and Northern Territory also understandably want to reap the benefits of wiping out the virus, and don’t want it reintroduced from interstate.

On the other hand the crisis provides an opportunity to broaden and deepen the public sector to create the ‘economic infrastructure’ around which recovery will occur.  Make strategic infrastructure investments, as well as structural improvements in public services ; unemployment services ; in Health, Aged care and disability services ; in welfare, transport, communications, arts.   Fix the NBN with ‘fibre-to-the-home’.  And coming out of the crisis: Have an active industry policy which strategically supports and invests in high wage manufacturing.

On ABC radio high speed rail was inferred as perhaps a ‘dubious investment’.  But it could drive growth in the regions, with a flow on of jobs and affordable housing.  As well as containment of urban sprawl and the transport crises that ensue from that.

The simple truth is that the public sector might have to pick up the slack on the economy for some time to come if there is to be any chance of a recovery.  And if we navigate this in the right way it can present an opportunity.

Modern Monetary Theory (MMT) holds that as the issuer of the currency the government can create money at will to invest and ensure a ‘full employment guarantee’.   Though this is limited by real economic constraints concerning the scale and nature of goods and services actually produced in the economy at the end of the day.  In some instances there might also be inflation ; and you cannot ‘create money’ to fund an infinite influx of imports.

But full employment is in everyone’s interests: so long as there is an ‘efficiency dividend’ which provides benefits for all ; and so long as consultation with unions ensures there is no endless ‘wage-price spiral’.   Higher employment has a ‘multiplier effect’ on the broader economy that also makes debts easier to service. At the same time, the wage share of the economy has been falling for decades ; and long term there is a need for a structural correction which could also create extra demand in the economy.   As part of this picture there should be reform of the labour market improving compensation in low-paid jobs – either with regulation, or through the social wage. (or both)

Modern Monetary Theory has been somewhat sceptical of the role of taxation, claiming it ‘takes money out of the economy’.  But this need not be the case if all that money is spent ; if indeed there is a stimulus.  Taxation also allows for a much more finely targeted redistribution of wealth: which should be desirable for progressives.

The current public health crisis is going to cause much more pain before it is overcome.  But the right kind of policies on investment, industry policy, welfare and stimulus can minimise that pain, and even help ensure in the end we come out of the crisis stronger.

On Socialism Today - Planning a Way Forward

The following article - which the author plans to submit for publication by the Australian Fabians - is an in depth survey of the background and options for democratic socialism in Australia and the world. The idea is to spark debate in the lead up to a series of events in Victoria planned for 2020. Your contributions to the debate are also welcome!

Dr Tristan Ewins


Socialistic sentiment can be traced back to the slave revolt of Spartacus and Peasant uprisings in Europe ; for instance that led by Thomas Muntzer in Germany. But ‘modern socialism’ began with those labelled as ‘utopians’ by Karl Marx. Figures like Robert Owen – who personally wanted to convince the bourgeoisie (and nobility) of an egalitarian, communal society based around the means of production. (specifically communes of up to 3,000 people) And all those others who depended on a ‘socialist vision’ to convince people of the desirability of a socialist order ; as opposed to Marxists who based their approach on ‘the fact of class struggle’.

Generally, socialists preferred equality ; an end to exploitation ; extension of democracy to the economy. Marxists wanted to socialise the means of production to end both exploitation and the destructiveness and wastefulness of capitalism and its boom-bust cycle.

But Marx had another criticism of capitalism ; and that was the way in which the division of labour and demanding nature of much work traumatised workers. This was his theory of Alienation. Today in Australia for instance we are a world away from the working conditions of the 19th Century. But in call centres, offices and factories the division of labour can still exclude creative control and work fulfilment. Indeed, work conditions can still be traumatising.

In Germany where the class struggle was advanced the Social Democrats arose as a combination of the Marxists (Eisenachers) and the Lassalleans. Lassalleans (led originally by Ferdinand Lasssalle) believed in industry-wide co-operatives with state aid. Eventually Marxism became dominant. But by 1914 in Germany right-wing ‘socialists’ had come to predominate in unions and the parliament, and those people eschewed internationalism and supported the First World War.

Before World War One both the European and British socialists supported the class struggle and the fight for universal suffrage to advance workers’ rights. But Britain was relatively liberal ; and this resulted in less emphasis on revolution and more emphasis on incrementalism.

Fabianism arose in the 1880s ; and came to represent a movement to influence opinion in liberal and progressive circles. Especially in the Labour Party in Britain. Beatrice and Sidney Webb (prominent British Fabians) expressed sympathy with the achievements of Soviet Communism – but that view did not last. Some Fabians would focus on practical public policy ; others on the more radical aim of incrementally replacing capitalism. Again: Generally Fabians were gradualist rather than supporting a ‘sudden rupture’.

Modern Australian Fabianism shared the British Fabian principles and was formed organisationally in 1947. The height of Fabian influence was in the Whitlam Labor Government.

After World War One the broad Left was generally divided into Communist, Social
Democratic and Labourist Camps. Although pockets of Social Democracy remained highly radical – as in Austria in the 1917 to 1934 period. (Austro-Marxism) These sought a ‘middle path’ between Bolshevism and ‘mainstream’ international social democracy. And there were anarchists and anarcho-syndicalists – who were significant in the Spanish Republican forces and the fight against the Nazi-backed fascist insurgency of Franco in the Spanish Civil War.

From the 1940s through to the 1980s Swedish Social Democracy enjoyed remarkable success (replicated to various degrees in other Nordic countries) with full employment, active industry policy, strong unions, and a strong welfare state. For the overwhelming majority of this period Social Democrats held government. Basically workers received social security in return for a ‘corporatist settlement’ including wage restraint. The full employment achieved under the ‘Rehn-Meidner model’ also made a stronger welfare state possible. Though Walter Korpi conceived of the Swedish situation differently: as a ‘democratic class struggle’, involving mobilisation of ‘Power Resources’ and compromise depending on the balance of class power. But in the 70s and 80s Sweden also had to respond to the Oil Shocks and devalue the Krona. The ‘Meidner Wage Earner Funds’ plan sought to compensate workers for wage restraint by giving them collective capital share. But this implied a radical redistribution of wealth over time. Also - because it appealed only to workers and not to citizens, it could be argued that the funds could have included a wider base. (which is democratically preferable anyway) Capitalists went on the offensive : socialists on the defensive. And there has been a slow retreat since.

Up until and including the 1970s and 1980s there remained strong pockets of radicalism in many Labourist and Social Democratic Parties. But the Oil Shocks of the 70s and the drive to restore profits divided the Left and led to Socialist retreat. Also the Soviet Collapse during 1989-1991 had an enormously demoralising effect on the Western Left ; despite the fact the Western Left had long distanced itself from Stalinism. It’s not unreasonable to see the Gorbachev reform movement as a window of opportunity ; and a missed opportunity.

From Hawke and Keating onwards Australian Labor has broadly internalised neo-liberal Ideology. Small government, privatisation, free trade, limits on the liberties of organised labour, trade agreements which give capital an effective ‘veto’ on regulation and public sector expansion. Marxism used to have a strong base in the Socialist Left. But increasingly the factions have lost ideological cohesion ; and have been subsumed in the mainstream political discourse.

Indeed, the experience of Hawke and Keating inspired Tony Blair and Antony Giddens with their ‘Third Way’ or ‘Radical Social Democratic Centre’. In the 19th and early 20th Centuries ‘Centrism’ had been a largely Catholic phenomenon including limited support for trade unions, labour market regulation and welfare. Since Giddens and Blair the ‘Third Way’ has come to represent ‘neo-liberalism with a human face’. Punitive welfare on the one hand, but also the principle there should be an economic and social ‘floor’ below which no-one should be allowed to fall. Blair also marginally increased tax. (will Australian Labor still consider tax reform for the next election?) But he would not retreat an inch in opposing any re-socialisation – no matter how badly privatisation had failed. (eg: of railways) In Australia more recently ‘Centrism’ as epitomised by the ‘Centre Alliance’ struggles to maintain a credible liberalism – let alone any kind of social democracy. For instance there is conditional support for the ‘Ensuring Integrity’ union-busting legislation. Today ‘Centrism’ in Australia can mean a shallow populism cashing in on broad disillusionment with the two party system. Significant parts of the ALP Right consider themselves ‘Centrist’ after the Blairite model. Blairites also generally accept capitalism as a given.

Fast-forward to 2019 and ‘What is to be done?’.

Capitalism remains more vulnerable than people think. There is much focus on public debt, but private debt is a ‘ticking time bomb’ that could lead to loss of confidence, panic and collapse. In Australia, the US and much of the world private debt is many times the level of public debt. The Australian economy especially has come to rest on the housing bubble. Millions are locked out of home ownership ; but sudden and radical devaluation would cause panic and collapse. The boom-bust cycle remains a fact: but governments focused on public debt are less likely to engage in counter-cyclical measures. This could one day mean recession (or Depression) as the ‘solution’ to indebtedness. Modern Monetary Theory (MMT) has it that government can ‘create money’ at will ; but this is not without limits. It involves a degree of redistribution which capitalists hate – but also inflation. Progressive tax is still more effective at redistributing wealth in a targeted and progressive way. But certainly the MMT crowd are on to something.

The Labor Party today is probably inclined to want to ‘save capitalism from itself’. The welfare state and higher minimum wages can assist by boosting expenditure and demand. A return to a meaningfully mixed economy can help by reducing cost structures via natural public monopolies. This could flow on to the private sector as well. As well, this could counter oligopolistic collusion – for instance in banking. (actually promoting competition) Higher government expenditure can also add money to the economy ; increase demand ; and ameliorate the explosion of private debt – which is a ticking time-bomb for the economy. (here and globally)

An expanded social wage, welfare state, collective consumption and social insurance – can also provide social justice and social security. Think reformed pensions – easing means testing and increasing payments. Public housing. Better-funded schools and hospitals. More money for the Pharmaceutical Benefits Scheme. More efficient public provision of infrastructure. (because of a better rate of borrowing and a ‘public interest test’ rather than share value and dividend maximisation) Also consider National Aged Care Insurance and a withdrawal of regressive user-pays mechanisms. As well as a retreat of user-pays in Education.

These are ameliorative reforms that can improve peoples’ lives. But Australia is still captive to the global economy and will suffer along the rest of the world in any ‘general downturn’ or ‘collapse’.

Over the long term we still need to think about an alternative to capitalism. Sub-Prime and the Global Financial Crisis did not only reveal instability – It also revealed the gap between Use Value and Exchange Value as Marx would put it. That is: there was an abundance of housing amidst widespread destitution and homelessness. This is a real capitalist failing and vulnerability.

Marx’s weakness was that he did not propose any concrete alternative vision to capitalism. He assumed ‘the class struggle would take care of things’. So maybe in part the ‘Utopian Socialists’ were on to something? The context of class struggle had to be engaged with ; but also concrete visions for the future. Today perhaps we need ‘provisional utopias’. We cannot afford to be ‘a force of pure negation’ with no vision for the future. Especially after the real historical experience of Stalinism.

But capitalism is a globally-reinforcing system. You can’t just ‘go it alone’ in revolutionising the entire economy. There are economic AND political constraints.

But what can be done is to begin a process of ‘revolutionary reforms’. Say in the spirit of the interwar Austrian Social Democrats. Even today in Austria there is a legacy in Vienna of 60% public housing – and overwhelmingly high quality public housing. A ‘democratic mixed economy’ would stabilise capitalism (through strategic socialisation and redistribution) while at the same time advancing towards an alternative. As in Austria this would also involve a counter culture: a rebuilding and reassertion of the labour movement ; but also a coalition with other social movements. What Gramsci would have called a ‘counter-hegemonic historic bloc’. That also involves establishing online presences ; other publications ; public meetings ; progressive radio and television ; social events of various kinds ; plays ; workers’ sport ; radical music etc. Establishing footholds where-ever possible.

Importantly the decline of industrial labour (with ‘deindustrialisation’) has widely meant a decline in class consciousness. Service sector workers can be just as exploited ; but are more likely to think themselves ‘middle class’ or lack class consciousness. We can and should fight this. But the industrial working class might not any longer be seen (in the Marxist sense) as a ‘finally redemptive’ ‘universal historic subject’. The labour movement is central: but the modern Left also needs alliances.

And should another Global Financial Crisis occur the big finance houses should not be ‘bailed out at the public’s expense’. Where the public sector steps in (if that occurs) it should retain a share in ownership.

Of course when it comes to advanced socialist transition bourgeois economic and political resistance has to be expected.

The ‘democratic mixed economy’ should be the short to medium term model. That includes a key place for natural public monopolies, strategic government business enterprises , consumers and workers co-operatives of various sorts (including multi-stakeholder co-ops which bring workers, governments and regions together) , mutualist associations . As well as ‘collective capital formation’. ( The Meidner Funds were such ; In Australia superannuation was a very pale imitation which may actually endanger welfare into the future by narrowing its base) ‘Multi-stakeholder co-ops’ are an important idea - as they could enable expansions of economies of scale to retain competitiveness under capitalism. All these are part of a concrete alternative.

There is also a need to restore and consolidate industrial liberties ; to increase organised labour’s power ; its ability to deliver ; and hence its coverage, strength, and ability to contribute to change.

Furthermore: how do we tackle ‘alienation’ today in Marx’s sense? Even with deindustrialisation, workers still find themselves alienated in modern professions – for instance call centre workers. The ‘post-industrial utopia’ has so far failed to emerge. At the least we can improve wages and conditions for the most exploited and alienated workers with low-end labour market regulation. (and maybe government subsidies where the market will not bear higher wages) Perhaps enabling a reduction of the working week for many. (though others would crave longer hours) ‘Free time’ is perhaps one alternative (for now) to Marx’s vision of a communism where workers regained creative control ; and labour becomes ‘life’s prime want’. (a quote from Marx) But ‘alienation’ is a feature of broader Modernity and not only capitalism. The rise of co-operatives could at least facilitate worker control – also ameliorating alienation.

In the final instance we need to think of where improvements in productivity could lead. Either to greater equality, plenty and free time for everyone. Or in the capitalist context only the intensification of growth, profit and exploitation. And possibly greater inequality if we do not socialise much of the gains of productivity. What Marx called the ‘coercive laws of competition’ means that competition forces a focus on productivity for capitalist profit and short term economic advantage. The problem is finding a way out of this ‘circuit’. (as well as the intensification of exploitation ; and a 'lagging behind in wages' in labour intensive areas where productivity improvements are hard to come by) We need to think where free trade and internationalism fit in to this problem. There are environmental implications as well. Capitalism by its very nature will trend towards the ‘endless growth’ option. Perhaps if the emphasis is on information and service industries it could be more environmentally sustainable.

But Sweden is also a warning. Again: there has been retreat since the Meidner Wage Earner Funds. The ‘corporatist consensus’ delivered for several decades in Sweden. But since the bourgeoisie ‘got cold feet’ and organised more overtly against Swedish social democracy – there has been a retreat. Swedish social democracy now has to work with Swedish Liberalism to keep the right-wing parties out ; and the price has been a retreat of the Swedish welfare state and progressive tax. In short: Socialists and social democrats have to be ready for capitalist backlash.

Class struggle creates change. That remains true. But so too do broader coalitions, cultural and electoral strategies. The Fabian Society in Australia is placed to mount cultural interventions ; and hence influence the electoral strategies of the Labor Party and the broader Left. We won’t get all that we want all at once. But we need a critique of capitalism. We have to be prepared for future crises. We have to think what a transition would look like: under what circumstances and what time frame? But all the time considering the reality of power – economic and political ; including the power of the State. And all in a global context: where global progress remains limited without global consciousness and organisation. Which is something the Fabians also need to be thinking about. Building ties with Democratic Socialists of America, for instance, could be a fruitful endeavour.

The Fabian Society re-embracing its place as an organisation of democratic socialism means engaging with these problems. For the short to medium term it is to be hoped we have an important strategic place in developing a ‘democratic mixed economy’ ; critiquing capitalism ; and imagining ‘revolutionary reforms’ which could decisively shift economic and political power over the long term.

above: While Menzies was far from without fault, on many issues today's Liberal Party would be unrecognizable for him. 

Dr Tristan Ewins

Much is said about the clash between the liberal and Conservative wings of the Liberal Party of Australia. Usually leading figures will speak of a ‘broad church’ which includes a diverse membership. But the truth is that the Liberals continue to drift ever deeper into the hard Right. Liberals will stand up for religious liberties (which there may be some kind of argument for) ; but John Stuart Mill would turn in his grave if he was aware of Liberal policies on trade unions, charities, and attempts to shut down grassroots mass organisations such as GetUp!

The Encyclopedia Britannica identifies various rights as central to Classical Liberalism. Freedom of association, assembly and speech amongst them. Also: “freedom from fear of reprisal”, and of arbitrary arrest and punishment. It also identifies free industrial organisation of workers as a necessary counter-balance in the marketplace.

Interestingly, iconic British liberal John Stuart Mill was even in some ways sympathetic with the socialist social experiments of Robert Owen in the 19th Century. (see: ‘On Socialism’, J.S.Mill, Prometheus Books, New York, 1976)

And while free markets are crucial to classical liberalism, various liberals are divided on the balance between public and private. All liberals would oppose a ‘command economy’, and would demand a central space for ‘personal determination of needs structures via markets’. For some liberals, however, Hayek and Rand are seen as occupying ‘the extreme end of the spectrum’ ; but those theorists’ ideas are exactly those promoted by the Institute of Public Affairs - which has a powerful role influencing Liberal Party policy. Before the 1970s, Hayek and Rand were ‘on the fringes’ in most Liberal and Conservative parties. Fanatical commitment to the progressive and open-ended dismantling the welfare state, social wage, social insurance and public sector would have once have been ‘out of place’ in ‘the Party of Menzies’. Now those ideas are in ‘the mainstream’. And for Conservatives, adherence to economic neo-liberalism has eclipsed ‘compassionate conservative’ tendencies.

By contrast with the original liberals, today’s Liberal Party of Australia is committed to the total dismantling of the power of organised labour. Its ‘Ensuring integrity’ Bill has several aims. Firstly, the bill (if passed) will take non-protected industrial action as being ‘criminal in nature’ ; and union leaders could thus be charged and imprisoned ; and unions themselves deregistered and ‘dismantled’. It will enable government to “sack” union officials convicted of criminal offenses: which includes ‘industrial’ offenses such as unprotected industrial action, and entering workplaces to organise or inspect working conditions without notice. Also: even ‘protected’ rights to industrial action will be able to be withdrawn if an ‘interested party’ argues it affects their interests. The legislation will establish in many ways arbitrary punitive powers for government against workers and union officials. While freedom to withdraw labour is a liberal right ; so too is freedom of association.

The Liberal Party is also now endeavouring to have mass-based progressive lobby group ‘GetUp!’ considered a branch of the ALP and the Greens ; and hence to restrict its rights to campaign in the lead up to elections, and on election day. With a membership base of over a million Australians ‘GetUp!’ is obviously much broader than the ALP or Greens, and has organisational independence. But these days the Liberal Party is simply interested in shutting down all opposition in a display of crude power politics. This is the opposite of liberalism ; even if defined narrowly as ‘classical liberalism’. True, the Liberals abrogated liberalism when they attempted to ban the Communist Party under Menzies as well.  ('Doc' Evatt's defense of the liberal rights of Communists was an important victory for Labor at the time)   But the Communists never had over a million members: mums, dads, students, retirees. People who want a political voice: but many of whom are not ready to join a Party.

Another example of Liberals abrogating liberal principles regards their treatment of charities and other organisations who must fear their tax-deductibility status being withdrawn if they criticise the government. ‘Political’ speech is seen as compromising the work of charities by the Liberal-National Coalition ; but in fact this is just another rejection of real free speech: sacrificed on the altar of brute power politics. Despite a decision by the High Court upholding the right of civic organisations like charities to engage in political advocacy, the Liberals and Nationals are still looking for ways to shut-down resistance. Arguments have been made to ‘withdraw support’ for organisations ‘out of step’ with majority opinion. (whatever that is)

The other side of this involves calls on the Left to tax churches ; which may include lay organisations at the grassroots level. While the Liberal Party has largely abandoned liberalism in practice, the Left could do worse than to integrate liberal and socialist principles.

Finally we must consider the treatment of refugees and the unemployed by callous governments of the Australian Right-Wing. Open-ended incarceration with the effect of breaking the spirit and the will to live of those affected has no place in any account of liberal human rights.

Meanwhile, ‘Work for the Dole’ comprises a form of labour conscription, and we must consider the real power relationships underlying these arrangements – as opposed to the fantasies of Hayek and Rand who only see ‘individuals freely entering into voluntary economic relationships’. Sophisticated liberals deal with ‘the world as it is’ and not merely as it is supposed to be in the theories of the economic hard right. In reality, both major parties are supportive of a policy of a “non-accelerating inflation rate of unemployment”. (ie: unemployment of approximately 5% with the point of containing inflation and wage pressures) The point of this is exactly to restrict workers’ bargaining power at a time when the unemployed are vilified, wages are stagnant, and there is restricted consumer demand in the broader economy. (in turn impacting on growth)

In times past liberals would be capable of recognising the real-world imbalances of power in economic relationships: and hence support rights for trade unions, and a decent welfare safety net without punitive, unfair and unrealistic mutual obligation provisions.

While some Conservative figures like Barnaby Joyce are finally recognising the threadbare and punitive nature of ‘Newstart’ unemployment insurance in Australia, Prime Minister, Scott Morrison, is determined to keep existing policies as a wedge against Labor. While 'Robodebt' policies drive innocent people to desperation and suicide, the hope of decent bipartisanship has been cruelly crushed. An ugly sentiment against the welfare-dependent and job seekers has been whipped up in the monopoly mass media in Australia for decades. But the Liberals have all-too-readily seized upon the consequent public sentiment ; and have exploited it.

While progressives should always prefer a Labor Government to a Liberal Government in Australia, it is to be hoped that genuine liberals like John Hewson - who have not been ideologically captured by the Institute of Public Affairs – improve their fortunes in internal debates. While this author is opposed to Blairite ‘Third Ways’ it would nonetheless be a relief to have bipartisanship on issues of basic human liberty and decency. While the Liberals increasingly embrace Hayek and Rand on the economy, on social liberty they are effectively against libertarianism. (eg: on the rights of organised labour)

In Australia the nominal party of liberalism is anything but liberal. Even in the narrow sense of classical liberalism they fail to uphold core principles. Labor could reconceive of itself as a liberal Party ; and occupy that space abandoned by the Liberal Party. But for social democrats and democratic socialists that is not the answer if it means abrogating our own historic principles, and the rights and interests we defend. But a more libertarian position on liberal rights on the Australian Left would apply significant pressure to the parties of the Australian Right. To a some degree this is already happening. It is a trend that needs to be developed further.

The Prospects for Socialism Today

Dr Tristan Ewins


Writing in the Herald-Sun, Chris Collins (11/1/19 ) argues that the Nordic countries have never been “socialist” because they have not conformed to the original Marxist definition of the centralisation of the means of production in state hands. In reality, though, there were always a variety of definitions, and even Marxists themselves have revised their understandings.


Socialist aspirations include ending exploitation and the class system ; and reducing inequalities to a fair level. In Marx’s words, to advance the principle “from each according to ability, to each according to need’. That should include a strong welfare state and social wage ; involving not only natural public monopolies and strategic state ownership ; but also producers’ and consumers’ co-operatives, democratic funds, and a mix of competition, markets and planning.


Socialism also means building an economy focused on ‘use values’. (ie: not just maximising abstract exchange value ; eg: preserving the natural environment) But we’re in a global economy: which means we have to live with the transnational corporations. They are at best ‘a mixed blessing’: at times spurring innovations and job creation ; but also unacceptable inequalities in wealth and power ; as well as collusion, monopolism, planned obsolescence and so on. But also arguably the consequence of bourgeois dominance is that we live in a ‘One Dimensional Society’ where substantially different social alternatives are excluded from mainstream discussion. What’s needed is robust pluralism: where socialism is part of the debate ; and hence a genuine option in the broader context of democracy.


In response to writers who attempt to put Swedish Social Democracy and Democratic Socialism in opposition to one another: for key Swedish thinkers and politicians such as Wigforss, Palme, Rehn, Meidner etc the Nordic Model was definitely a kind of socialism. The 'high water mark' was with the Meidner Wage Earner Funds proposals of the 70s and 80s. That marked the end of a 'corporatist consensus' (institutionalised consultation and co-operation) which developed over several decades starting from the 1930s. The model has been in slow retreat since. But its past successes over many decades still give a sense of what is possible.


Importantly, the wage earner funds were to be structured in such a way as to compensate workers for prior wage restraint. But the extent of that wage restraint had been such that the funds would eventually deliver economic control to workers over many years. One of the biggest problems with the funds is that they focused on workers alone rather than the broader category of 'citizens'. (hence excluding pensioners for instance) In 1983 Australian Leftists like Laurie Carmichael wanted ‘Nordic Style’ policies in return for wage restraint under the the Government of Bob Hawke and 'The Accord'. Unfortunately nothing of the sort was actually delivered.


That said: what kind of state is in a position to deliver on socialism?


Leninists are inclined to oppose the ‘liberal bourgeois state’ to the kind of state which existed under the Bolsheviks. A ‘workers’ state’. Trotskyists would argue it had become a ‘degenerated workers’ state’ under the domination of Stalin.

On the other hand, by certain interpretations a genuine workers' state is a democratic state ; where we can interpret 'the dictatorship of the proletariat' as a 'manner of applying democracy' ; the 'democratic dictatorship' of the working class majority. (widely misinterpreted, the term always referred to the democratic rule of the working class as opposed to the rule of a single man such as Stalin) The ultimate aim is to create a ‘pure democracy’ where the state represents all people ; and the class system is permanently transcended. Finally, the State itself is presumed by Marxists to ‘wither away’ with the end of all class divisions and antagonisms. One flaw of this thinking, however, is the presumption that over the long run 'only class antagonisms matter' to such a degree that some kind of state power is necessary either as arbiter ; or to enforce interests.


Arguably Sweden enjoyed a decades-long 'equilibrium in the class struggle' or otherwise what Korpi called a 'democratic class struggle'. Where the class struggle was in some ways 'institutionalised' between social democrats, unions, employers. Concessions were made based on ‘the balance of class forces’ ; but open escalation of conflict was avoided as being in no-one’s interest. Then in the 1970s and 80s the Social Democrats and the LO (‘Landsorganisationen’ ; or Swedish Trade Union Confederation) attempted to assert their democratic leverage to achieve previously unheard of economic redistribution and democratisation. Again: even with over 80% unionisation coverage they still failed. And Social Democracy has been on the defensive there largely ever since. If anything, this gives an idea just how difficult the struggle can be.

What we need is a democratic state which is not a medium for direct OR indirect bourgeois rule. Nicos Poulanztas wrote about a 'logic of the class struggle' which 'imprinted itself upon the state field'. I'm not a structuralist (as Poulantzas was) ; but in a way that makes sense. The state tends to defend bourgeois interests ; but not totally. It is not a 'simple instrument'. It is much more complex than that. Rather, it has its own internal contradictions and internal struggles. What we need is a state which is fully committed to the implications of democracy: as opposed to the direct or indirect rule of the bourgeoisie.

The problem is that capitalism is supported by a clear majority of states ; as well as by the transnationals which are an expression of and foundation for global bourgeois dominance. Even assuming a state which breaks POLITICAL bourgeois dominance at a local level ; there are still the remainder of bourgeois states internationally; and global bourgeois economic power ; and economic co-dependence.


Think about revolutionary France. The Revolution was diverted into Bonapartism. (the rule of the French Emperor, Napoleon I) And eventually with the Congress of Vienna there was total Restoration of the "Ancien Regime" in France, and the consolidation of monarchies and their traditional bloodlines elsewhere in Europe. Liberal Democracy did not really take hold through much of the world until the Bolsheviks put much of the European bourgeoisie under such pressure as to implement the crucial concession of universal suffrage. This had long been a key Social Democratic and Marxist demand. We're talking about a period spanning over 100 years. (throughout which we had other revolutions and struggles ; eg: 1830, 1848, 1871) Thereafter the bourgeoisie and its representatives have spent another 100-odd years thinking of ways to divide the working class against itself to prevent it from realising the potential of the suffrage. The splintering of the working class culturally and economically has made it increasingly hard to realise the solidarity we need to bring about the change we want. Narratives on ‘political correctness’ and ‘left elites’ have just this effect ; and sometimes by neglecting class interests we play into the bourgeoisie’s hands.


Critics of socialism often declare that they don’t want ‘statism’ or state domination. And this they associate with socialism. Well, no - we don't want Stalinist-style 'statism'. (though I hate the term 'statism' as it is commonly used to stigmatise any place for the state ; even a democratic state) But 'wresting capital by degrees' from the bourgeoisie still sounds like a good idea - if done properly – and if only it were possible. The problems of exploitation and economic polarisation still demand our attention as practical and moral questions. And after all, radical redistribution of wealth is what the Swedes were attempting with the Meidner wage earner funds in the 1970s and 1980s .

Arguably the Mixed Economy represents progress towards that goal. Though the ‘mixed economy’, social wage and welfare state can be supported by far more ‘moderate’ forces who want nothing more over the long term than to ameliorate inequality and ‘save capitalism from itself’.


"Wresting capital by degrees" from the bourgeoisie can imaginably involve a mix of public, co-operative and other democratic ownership - as opposed to 'Stalinist Statism'. But the process cannot be finished because bourgeois interests reinforce each other globally. Currently, there is no (acceptable) ‘way out’ of capitalism. But if we mobilise we can at least force compromises which are in workers' and citizens' interests. And we can convince the bourgeoisie that compromise is sometimes in its own interests. (again ; 'saving capitalism from itself') For example: natural public monopolies can reduce cost structures not just for citizens/consumers/workers – but also for business. And a state-owned savings and loans bank (with a charter promoting competition and ethical banking) could inject competition into the sector of benefit both to business, and to most ordinary people.


Importantly - forcing compromise through struggle is in some ways more involved than just 'gaming the system'. Over the long term who knows what's possible? Again: think about Revolutionary France - and the hegemony of liberal democracies which only finally arose more than 100 years later. We can only hope it will not take a catastrophe such as the First World War was to provide enough impetus to drive qualitative change ; to challenge the class system and the ‘defacto rule’ of Capital.

If anything the Global Financial Crisis gave a sense of capitalism’s enduring instability ; and that (should another crisis occur) radical interventions may be necessary ‘to save the system from itself’. But public dissatisfaction with “bailouts at the peoples’ expense” may drive strategic socialisations sooner than we think.


Socialism is not ‘inevitable’ as the old Marxist Centrists used to insist. We cannot anticipate all the policy innovations which may help ‘save the system from itself’. But over the long term a more generalised breakdown cannot be ruled out either. Socialists need to stand prepared for all manner of contingencies. Global organisation and dialogue are necessary to best prepare for those contingencies. That means not responding to discourse on ‘globalisation’ as an excuse for defeatism. It means working out the possibilities of domestic social democracy/democratic socialism ; but also building the organisation and dialogue necessary to give rise to internationalist responses. The current Socialist International is not an effective vehicle for this. Can it be reformed? Or do we need new forms of international organisation and dialogue?

Remembering Rosa Luxemburg and Karl Liebknecht

Rosa Luxemburg and Karl Liebknecht

Dr Tristan Ewins



16/1/2019


Comrade Marcus Strom alerted me and many others on Facebook that 15/1/19 was the 100th Anniversary of the brutal murder of Communist leaders Rosa Luxemburg and Karl Liebknecht ; and the dumping of their bodies in the Landwehr Canal in Berlin. Liebnecht was an outstanding orator and leader. Meanwhile, Rosa Luxemburg (a Jewish Communist ; born in Poland – but migrating to Germany where the class struggle appeared the most advanced) is the best remembered today. This is largely because she is survived by a plethora of theoretical and practical political-literary work – much of it still relevant for the Left.


The broad example of the slide into war ; and the murder of Rosa and Karl is still instructive today of the dangers of certain kinds of ‘social patriotism’. In 1914 the parliamentary caucus of the SPD (German Social Democrats) voted in favour of war credits – to fund the War. This was against the standing policy of the Second International. Specifically it was the right-wing leadership of the Social Democratic Government following the 1918-19 Revolution who ordered the murders. For genuine socialists, the names “Ebert, Noske and Scheidemann” will forever live in infamy. And deservedly so.


It is disturbing to think that the SPD was perhaps the leading Social Democratic Party in Europe in 1914 – and yet it crumbled under pressure at the first real hurdle. Many socialists – including Karl Liebnecht and Rosa – tried to agitate against the coming blood-bath. Rosa was imprisoned for the duration of the war after distributing anti-war material. For years social democratic parties had talked about internationalism in the instance of a conflict. But in practice the German trade unions had been subverted ; had embraced a kind of ‘ethno-nationalism’.


And they effectively fell into line in return for a handful of reforms.


Therefore perhaps there was no social or economic basis for stopping the war. But the capitulation of the SPD parliamentary caucus set a demoralising example – which resulted in the split in the Social Democratic movement ; with the most uncompromising anti-war elements re-forming as Communist parties.


Right Social Democrats ; people like Ebert, Noske and Scheidemann ; were sold on ethno-nationalism in Germany since the start (of the war). They capitulated again when some social democrats argued the war should only be supported insofar as it was concerned with ‘national defence' ; and never be allowed to turn into 'a war of conquest'. But the German Army hierarchy demanded open ended support for the war instead. Again, in 1914 the caucus rolled over entirely.


Karl Kautsky – the leader of the ‘Marxist Centre’ – and for a time the most authoritative Marxist intellectual in Europe and the world - argued for a symbolic abstention on the issue of war credits. But this gained little traction. Lenin was to revisit Kautsky’s position following the October 1917 Russian Revolution, branding him a ‘Renegade’. But more on Kautsky later.


The real worry is how the unions remained so conservative at the start of the war. And swallowed militarist nationalism hook, line and sinker. In any case the war was to destroy those same unions ; as worker’s organisation collapsed in the face of total war mobilisation. It shows that achieving intellectual leadership of a socialist movement is not enough unless socialist, anti-imperialist and internationalist values can be successfully imparted to a broader base. As well as a willingness to fight when the situation demands it.

Who knows what motivations drove the German Social Democrats to support war in 1914? Fear of imprisonment or execution? Fear of the organisational destruction of the party? (False) assumptions the war would be short? Penetration of the caucus by government agents? Again: many social democrats insisted that support for the war be withdrawn once it became 'a war of conquest'. But the reality was that the Army had the guns. Again: the parliamentary caucus folded in the face of military pressure.


But what many Leninist and Stalinist critics do not recognise is that by 1915 the 'Centrists' (ie: as in the Marxist Centrists) had began agitating for peace at Zimmerwald. Those people argued for a separate peace. So did the Revisionist Socialist, Eduard Bernstein. By comparison, Lenin argued for civil war - to turn the war into Revolution across all Europe if possible. For all Lenin’s criticisms of Karl Kautsky – by 1915 he (Kautsky) was himself openly fighting against the war. The critiques of Bolshevism by such diverse figures as Luxemburg, Martov and Kautsky – are still worth reading today as we grapple with the meaning and legacy of the Russian Revolution and its eventual descent into Stalinism. (though many critics under-play the severity of the conditions faced by the Bolsheviks ; and the role of Western intervention in fuelling the centralisation and resort to Terror which opened the way for Stalinism ; That includes destabilisation and support for the White Armies – which meant the threat of starvation and heating fuel shortages for ordinary Russians )


Rosa Luxemburg is famed for her unique, libertarian Marxist contributions to socialist theory and practice. Her theory of the ‘spontaneity of the masses’ is more nuanced than shallow critics would allow for ; positing a dialectical relationship between Party leadership and proletarian initiative. She recognised early on the potential of the Mass Strike. Also, she feared the consequences of over-centralisation within the Bolshevik Party for any revolution ; and particularly the substitution of the Party – and later the Central Committee – for real, grassroots and participatory proletarian democracy. For her there could be no compromise or ‘middle way’ between Reform and Revolution. She was a strong critic of Revisionism ; including the positions of Eduard Bernstein.


But there are traditions of Left Social Democracy which are not stained by that. For instance the Austro-Marxists. The Austro-Marxists built a participatory counter-culture (workers’ sports, radio stations, libraries, forums, orchestras) ; and progressively funded public housing and amenities like laundries and pools for workers. They even maintained their own militia to defend ‘the democratic path to socialism’. This contributed to the sense that ‘Red Vienna’ was ‘a showcase of Social Democracy’. Though they also made certain fatal mistakes (eg: letting go of their grip on the state apparatus of force in the 1920s) which made it easier in the end for fascists to seize power in 1934.


So as against Rosa Luxemburg I believe a ‘middle way’ of ‘revolutionary reforms’ is possible. But on the 100th Anniversary of her death it is better to honour her very significant legacy. The legacy of her bravery and self-sacrifice. Of her intellect ; her uncompromising values ; her commitment to the working class and her faith in what she believed to be the coming revolution.


On the other hand, the example of the 20th and early 21st centuries (including the rise of fascism ; and also of neo-liberalism) appear to have put paid to a sense that some ‘inevitable teleology towards socialism’ can be counted on. Historical outcomes are far more contingent and uncertain than the old Marxists were willing to admit. Even though the continuation of neo-liberal capitalism is likely to cause intense human suffering – with increases in the intensity of labour ; and further cyclical crises and class bifurcation. And environmental crises also. Perhaps old Marxist claims to ‘inevitability’ provided morale and confidence. (as Kautsky put it – “the proletariat’s belief in its own strength”)


But while there is *hope*, notions of inevitability can no longer be maintained. Barbarism is as likely as socialism ; and that itself is a good reason to fight.


Rosa’s fears were realised in the end as Bolshevism gave way to Stalinism. For Communists it is instructive to read her critiques of Bolshevism to get a sense of the dangers associated with Stalinism. And also even with Trotskyism and Leninism. Trotsky wrote of a ‘Soviet Thermidor’ in his critique of Stalinism, ‘The Revolution Betrayed’. But in reality Trotksy supported the same policies of centralisation which led to a situation akin to the demise of the French Revolution - with the rise of the Napoleonic Empire in the place of the Republic. (Stalin is seen as a ‘Bonpartist’ figure) ; Only Stalin’s repression of his own people – and his Terror against them - was far more extensive than under other ‘Bonapartist’ regimes.


Compared not only with Stalin – but also with Lenin and Trotsky – Luxemburg stands for a kind of libertarian communism. To this day the leadership she provided with her activism and her writings – set a redemptive example for a Left which is often accused of ‘authoritarianism’ or ‘totalitarianism’. Luxemburg was a democrat and libertarian-revolutionary-communist ; and an uncompromising opponent of the wholesale slaughter of War ; and the Imperialist designs of the ‘Great Powers’.


My personal inclination is more towards the example of the reformed relative (Marxist) centre following World War One. Especially the Austro-Marxists. (though I am critical of them on certain counts as well) But Rosa’s steadfast bravery ; her self-sacrifice in pursuit of peace, and for the liberation of the working class ; should always be honoured on the Left.


Today’s Left needs to engage with past Social Democracy (and Communism) if it is to understand its past ; draw the necessary lessons ; and better plan for its future. This should also include a consideration of the sources of the split in Social Democracy in 1914 ; and the historical ramifications of that. Rosa Luxemburg ; and others like Karl Korsch ; showed that a different kind of (libertarian) communism is possible.


A different kind of social democracy is also possible: committed over the long term to the pursuit of ‘revolutionary reforms’ which would deepen democracy, transform the economy , and over time challenge the class system.


May Rosa Luxemburg (and Karl Liebknecht) always be honoured and remembered on the Left.

'For an Equal and Democratic Australia' model ALP Platform - Updated for 2018

Dear Friends and Comrades;

We’re Promoting an Updated version of the ‘For an Equal and Democratic Australia’ Model Platform for the ALP. The program is updated for 2018 from a very similar version platform I promoted for the 2015 Conference.

At this point we’re still considering suggestions to expand the document – and your ideas are welcome. Contact Tristan Vaughan Ewins at Facebook if you have a suggestion you would like to make.

The ALP needs a vision for the ‘big picture’ of social welfare, democratic and nation-building reforms it needs to implement in government.

Included are proposals on tax and welfare reform, social insurance, environmental reform, a ‘democratic mixed economy’ and much, much more.

Please also propose motions in support of this program at your local branch, or your ALP student club. Or you may belong to a ‘third party organisation’ (eg: a welfare organisation, charity, student union or other advocacy group). Motions of support from these organisations are also welcome! If you successfully pass a motion in favour of this document please leave a comment to Tristan Vaughan Ewins at Facebook so I am aware of this and can promote our success in garnering support.

With enough support and wide enough distribution we may influence debate on the ALP National Platform – to be decided upon this year in 2018.

If you are a delegate we would especially be interested – pls let us know.

But we will keep on campaigning after that also: to continue to build momentum for a genuinely progressive Federal Labor Government for 2018 or 2019 and onwards.

Again: if you support the goals of this ‘minimum platform’ please respond to this paper by ‘liking’ it at our Facebook group – and that support will be noted for purposes of our campaign.

see: https://www.facebook.com/ALPequalanddemocratic?focus_composer=true

We may also see if we can promote this cause via the ‘Megaphone’ Petition Platform to mobilise further support ahead of Conference.

As supporters of this Program we endorse the incorporation of the following into the ALP Platform for 2018:

a) ALP Core Mission:  We believe that the ALP exists for the purpose of improving fairness, democracy and equity. We support the promotion of a robust civil society characterised by informed and active citizenship ; and civil rights and liberties (including industrial rights and liberties), as well as preservation of the natural environment upon which human survival itself depends. Also we support separation of church and state - amidst freedom of faith and worship.  We support the advancement of ‘political’, ‘social’ and ‘economic’ citizenship; That includes the defence of civil and democratic rights and liberties; the provision of social wage and welfare rights; and finally the pursuit of a ‘democratic mixed economy’.

  

b) A Democratic Mixed Economy:  We support a variety of strategies for a ‘democratic mixed economy’. That includes a mixture of public and co-operative ownership and control (including but not necessarily limited to public ownership of critical infrastructure and natural public monopolies, and strategic Government Business Enterprises), as well as mutualism, 'union-friendly' co-determination and other related strategies; and also crucially including ‘democratic collective capital formation. (‘collective capital formation’ was a term used by Swedish social democrats to describe their Meidner Wage Earner Funds ; but might also be applied to superannuation for instance). Specifically we support a stronger role for producers and consumers co-operatives in the Australian economy on both a large and a small scale. For instance, government co-investment may be required to help co-operative enterprise increase its scale so as to remain competitive and hence viable. We support very significant but initially-capped aid to co-operatives via cheap credit, tax concessions and free advice/economic counselling - with co-operative enterprise supported in a variety of spheres, including credit unions, insurance, child care and aged care, manufacturing; as well as co-operative small and medium businesses. (for example in hospitality) 

c) Reform Tax to Extend Social Investment and Expenditure: We have as a medium term objective the goal of meeting the OECD average regarding our Tax to GDP Ratio. That means an increase in the Tax to GDP ratio by 5% ideally over as long as three terms of Labor Government. Specifically this translates to an increase of $80 billion/year in today’s terms. 


d) Specific Revenue Measures: To fund these new commitments we support measures including but not necessarily limited to the following:


· very significant strategic and equitable rescission of superannuation tax concessions (perhaps $10 billion/year or even more)

· Progressive expansion of the Medicare Levy

· restoration of a robust Mining Super Profits Tax

· the establishment of a progressively structured Aged Care Levy.

· Progressively restructure the income tax mix, and thereafter fully index the bottom three thresholds.

· Restoration of Company Tax and strong measures on Corporate Tax Evasion ; network with like-minded parties to create a global shift against the ‘race to the bottom’ on corporate tax

· Halving the rate of Dividend Imputation (perhaps $10 billion/year)

· An inheritance tax on inheritances valued over $2 million and over. (indexed)

· Consider stronger measures further limiting Negative Gearing for investors holding portfolios including several properties.


The total measures implemented must provide for the aforementioned increases in social expenditure, and very significantly add to rather than detract from the progressive nature of the overall tax and spending mix.


e) Specific social expenditure/infrastructure measures we support for implementation in the first term of an incoming Federal Labor Government include: 

• a progressively-funded National Aged Care Insurance Scheme providing a broad range of high quality aged care services for all those aged 65 and over with the need (including high intensity care, low intensity care , and ‘ageing at home’) – and without forcing disadvantaged and working class families to sell or take equity against the family home to achieve the highest quality care. Also mandate a nursing skills mix in every aged care facility that includes a Registered Nurse on-site 24 hours a day.
  
  · Robust and progressively applied increases in state school funding; including improvements in funding formulae as proposed in ‘Gonski 1.0’ ; over the longer term we aim to improve the quality of state education (including infrastructure and student to teacher ratios) to the point where demand for private schooling is very significantly reduced.  The point is to achieve true equality of opportunity in education.
  
  · Completion of the National Broadband Network – publicly owned and with Fibre to the Premises (FTTP) technology; as well as other public-funded and owned infrastructure in areas such as transport, communications, water and energy; keep it public and provide as a social and economic good – not just ‘to realise a profit’.
  
  
  · Construction of ‘East Coast Fast Rail’ and State-Owned Centralised Renewable Power Generation
  
  · greater public support and funding for pure and applied scientific research via the CSIRO.
  
  · A review of existing job network services; considering the possibility of re-consolidation of a single provider in the public sector (Centrelink); And regardless of this ensuring an emphasis on a more compassionate, patient and understanding approach to case management; especially considering the special needs of the long term unemployed, the under-employed, disability pensioners, those with differing skill types and levels; and for older job-seekers,
  
  f) Welfare Reform: We reject the ‘blame the victim’ and ‘blame the vulnerable’ mentality promoted by the Conservatives. Along with that we reject all forms of ‘Punitive Welfare’. Specifically we propose raising the Aged and Disability Pensions, Youth Allowance, Austudy, ABStudy by a minimum $50/week. (then indexed)  Newstart to be raised by $75/week (also fully indexed).  We also support a more generous Carers’ Allowance ; and reject effective labour conscription for ‘Work for the Dole’ , as well as rejecting waiting periods for Newstart which force vulnerable Australians to exhaust their personal savings.  (or even drive some into homelessness) We understand that many pensioners – for instance the disabled – require flexibility which existing labour markets do not provide. To overcome ‘poverty traps’ we support ‘positive incentives’ and ‘flexible work’ without loss of pensions. FINALLY: We believe the ALP should consider – and conduct research into – the replacement of NewStart with a Guaranteed Minimum Income. (GMI)
  
  g) Retirement Age: We are committed to maintaining a retirement age of 65 instead of raising it to 67 or 70. Indeed we are also open to the possibility of reducing the retirement age below 65 into the future. Specifically we support reducing the retirement age for those who have suffered physical debilitation as a consequence of demanding work. (eg: manual labourers)
  
  h) Industrial/labour rights: We support a legislated real increase in the minimum wage as well as pattern bargaining rights for unions.  As well as stronger re-regulation of the lower end of the labour market more generally. And we support effective subsidies for some of the most exploited and underpaid workers (including in child care, cleaning, aged care and elsewhere)– whether through direct subsidies, tax concessions, enhanced social wage provision and other effective measures. We also support the industrial rights and liberties of workers; including a right to withdraw labour ‘in good faith’ (including political strike action), and including a right to secondary boycott when ‘in good faith’ in solidarity with ‘industrially weak’ workers
  
  i) Further Educational Reform

• Curricula for ‘active/critical citizenship’: We are committed to reform of school curricula for the purposes of promoting ‘active and critical citizenship’. Without bias, the point of such reform would be to impart balanced and inclusive understandings of political values, movements and ideas, and social interests. We believe active and informed citizenship means a stronger pluralist democracy.
  
  · We support restoration and expansion of tertiary education funding; including for universities and the TAFE sector; with an expansion of tertiary education placements on the basis of an understanding of education as a modern social right, and not an exclusive privilege.
  
  · We also support the humanities and social sciences for the sake of effective pluralism in the Australian public sphere. And we support provision for tertiary academics’ participation as ‘public intellectuals’ and not only on the basis of the bulk of published academic works.
  
  · Furthermore we support progressive reform of the HECS system: reversing any fee deregulation, and with real increases in the repayment threshold significantly above Average Weekly Earnings; and forgiveness of debts of those who have a good reason for not being able to benefit from the prior education. (eg: because of disability)  Over the medium to longer term we support reversion to free tertiary education.
  
  · Gender equality: Finally, here, we support and strive for equal participation, and on-average equal achievement - between men and women in higher education, and greater participation and opportunity for those from disadvantaged and working class families.
  
  
  j) Treaty and a Republic: We are committed to beginning formal dialogue with representatives from the entire range of indigenous peoples with the aim of negotiating a Treaty. We support an incoming ALP government initiating such a process in its first term. Also we support the realisation of an Australian Republic at such a time that public opinion is such as to achieve the change.
  
  
  k) Environment: We are committed to increasing the proportion of renewable energy sources so as to achieve a real reduction of emissions even as the economy and population grow. Specifically we aspire to reduce Australia’s greenhouse gas emissions by 25% below 2000 levels by 2025. To this end we support large scale public investment in renewables, as well as generous subsidies for lower income households to acquire micro-renewable energy systems; and incentives for landlords to invest in micro-renewable energy. In further environmental reforms we are committed to sustainable land use and water management, achieving ‘world’s best practice’ in food production.
  
  We also support an Emissions Intensity Scheme that would set an emissions intensity benchmark for the whole electricity sector, which will reduce in line with emissions reduction targets; 50% by 2030. To ensure that this mechanism would successfully reduce emissions, benchmarks will be set five years in advance as recommended by the Grattan Institute, and revised as the need for greater emissions reduction appears. The EIS would be accompanied by the maintenance of the Renewable Energy Target, and large scale investment in renewable energy through reverse auctions, provided the assets are held in public ownership at the end of construction. We also support providing microgeneration grants to households and businesses to promote uptake of renewable generation technologies, and reform of feed-in tariffs so consumers producing their own energy are paid an appropriate amount when selling the excess back into the grid.
  
  l) Humanitarian Migration: We support a very significant expansion of Australia’s humanitarian migrant intake. Additionally, we want for an ALP government to pursue diplomatic channels to encourage other prosperous countries in the region to also increase their humanitarian intake very significantly. For asylum seekers we support humane onshore community-based processing.  (that means close detention centres including in Nauru)
  
  m) ABC and SBS: We support continued (and extended) funding of the ABC and SBS – and the pursuit of ‘participatory media’ principles and strategies through these channels. We support a role for the ABC and SBS in pursuing an ‘authentic’ public sphere, and an inclusive pluralism. (with the exception of not providing a platform for the far right) And we support representative ‘popular’ participation on the ABC and SBS boards of management

n) Public and Social Housing: We support very substantial new investment in high quality public housing (a minimum ‘surge’ of $10 billion) facilitated through tied Federal grants to the States, and also social housing where it is more cost-effective - to increase supply, and hence also affordability. (combined with the necessary public investment in local infrastructure in emerging suburbs) That includes expansion of ( largely ‘non-clustered’) public housing stock to at least 10% of total stock over perhaps three terms of Labor Government. Where appropriate we support a mix of low, medium and high density stock. Further: High density housing development in capital CBDs, and amongst strategic activity/transport hubs - should not be left ‘only to the private sector’ ; and public developments could include more generous provision of space, and high quality amenities such as common rooms, gyms, pools, parks and gardens. Planning laws should also be rigorous to ensure a viable spread of amenities and services where-ever housing developments occur.

o) Internal Reform:  We support internal democratic reform of the ALP; including a direct role for union members in supporting particular policies and platform items; as well as direct election for ALP National Conference delegates; actual adherence to State and National Platforms; and a ‘mixed model’ for election of the Party Leader which may include rank and file, Parliamentary Labor and trade union components. We also support the establishment of a ‘progressive public sphere’ in this country, including (for our part) ALP related forums, and policy and ideas conferences and publications which are inclusive, authentic, progressive, and which accommodate difficult debates.

p) Strategic industry policy: We support an active industry policy aimed at the maintenance of ‘strategic industries’ with ‘strategic capacities’ in Australia; including through automotive production and shipping-construction. This means a public investment rather than a public subsidy or handout.  And it could create the basis for a more-independent foreign policy as well. Said industries can also involve high wage, high skill labour. And there are a variety of potential models, including joint multi-stakeholder co-operative-state ventures – involving workers, regions and government. This ought also be supported by attempts to emulate Denmark's success in related Education and Training.

q) Multilateral Disarmament and Peace: At the same time we support a policy of realistic multilateral disarmament with the aim of freeing resources for purposes which meaningfully improve peoples’ material; quality of life


r) On Health Care we support the following:

· provision of comprehensive Medicare Dental – with a wide array of dental services provided at minimal cost and promptly for pensioners and low income groups; The main aim here must be to radically slash waiting lists which currently can be in the vicinity of two years unless in the case of a ‘dental emergency!’ This means that vulnerable people are denied help until things reach ‘the critical point’. With new funding and resources public dental waiting periods must be no more than six months.


· Also increase investment in the Pharmaceutical Benefits Scheme to extend its coverage

· Improve the rate of Bulk Billing

· Tighten means tests for ‘Lifetime Health Cover’ in order to pay for the removal of penalties for low income individuals (including pensioners) who let their policies lapse; Over the longer term we aim to improve the quality of public health to such an extent as to significantly reduce demand for private health insurance. During the interim we also support the growth of Health Insurance Mutual Associations as alternatives to Private Health Insurance.

· Also extend Medicare to cover physio, optometry (including glasses or contact lenses), speech therapy, podiatry, psychology; provision of hearing aids where necessary; and also cosmetic surgery for those in extreme need (for instance as a consequence of physical injury)

· Improvement of and substantial new investment in mental health services to ‘close the gap’ regarding the life expectancy of those with mental illness; as well as to improve productivity and quality of life.  (for example there are in the vicinity of 200,000 to 300,000 Australians with Schizophrenia who on average live 25 years less than the general population)


s) ‘Physical and virtual commons’ ; ‘Public Space for Public Use’ ; We believe that ‘physical and virtual commons’ are necessary to provide support for a strong, participatory and democratic civil society’ ; In part this means decoupling public space from any strict and/or exclusive relation to consumption. Local communities must have centrally-located meeting and gathering spaces – and this requires a significant public investment, and associated regulations. In part this can also be supported with dedicated space in local business districts – including in shopping malls. Such developments should be dependent upon the provision of ‘community kiosks’ which would provide comprehensive information on how to become active in community organisations and clubs, social movements, political parties and so on. But excluding the far-right. Once-off public meetings and gatherings could also be promoted via these ‘community kiosks’ ; and citizens could ‘sign up’ for mail outs and/or emails regarding ‘what is going on’ in communities on a month-to-month basis.

t) A Comprehensive Bill of Modern Human Rights: Finally: We support a comprehensive ‘Bill of Rights’ in this country, supporting liberal and civil rights of suffrage, speech, assembly, association, faith, conscience. As well we support ‘social rights’ including education and health, a guaranteed minimum income; housing; access to communications and information technology; access to transport; access to fulfilling employment with a remission of exploitation; social inclusion including opportunity for recreation and participatory citizenship; respect and human dignity.

What does 'Revolutionary' mean to Socialist Democrats today?

Above: Austro-Marxist leader and Theoretician, Otto Bauer



Does (and should) 'Revolutionary' mean anything anymore to the Democratic Socialist Left?




Should it mean anything anymore within the ALP Socialist Left?

Dr Tristan Ewins

A comrade in the ALP Socialist Left recently rebuked me for discussing "revolutionary" politics ; and said that "thankfully" the vast majority in the ALP SL are NOT revolutionaries and that that's "the beginning and the end of the discussion thankfully".



This was my response:



"When we speak of 'revolutionary' aims not everyone is talking of the same thing. Personally I'm NOT talking about an insurrection ; armed or otherwise. What I am talking about is qualitative change ; preferably through democratic channels ; though being prepared for whatever resistance may arise against said qualitative change through democratic channels when push comes to shove. So I'm talking about what various Leftists have described as 'slow revolution' or 'revolutionary reforms'.

What would be a 'revolutionary reform'? Well the Meidner Plan held that promise for a start. (ie: an economic plan which would have rewarded workers with collective capital share in return for wage restraint ; with the consequence workers collectively would over time become the dominant force in the Swedish economy) Going back further: free, universal and equal suffrage comprised a kind of 'democratic and political revolution' which only became possible in many countries following the end of World War I - and the fear of Bolshevism.

Were we around in the 19th Century - or in the 1917-19 period , would we have fought for the suffrage ; or would we have rejected 'revolutionary' changes of all sorts as a matter of policy so as not to rock the boat?


When I talk about a democratic economic revolution I'm talking about democratic collective capital formation ; restoring a robust mixed economy ; supporting co-operatives (producers' and consumers') with state aid. I'm also talking about decisive state support for the voluntary and domestic sectors. I'm talking about going down that road to the point where 'the democratic sector' becomes dominant. And hence a pivotal shift in the balance of class forces.


I'm also talking about a 'democratic cultural and political revolution' : driven by an exponential increase in political participation and consciousness. Where there is a qualitative change (a revolution) in our democracy which takes the form of said consciousness and participation.


For Marxists the final aim is to replace wage labour with economic democracy ; and then to transition to stateless communism. I'm not a full blown communist because I tend to believe human nature is not perfectible ; and therefore I think some kind of state power (albeit democratised) will be necessary for a long time to come.


I think the suppression of wage labour (ie: typified by the exploitation of labour by capital) can be taken so far ; But at a point you run into very serious resistance from the transnational corporations and often by their state-facilitators. Look what happened to Gough ; and look what happened under Rudd re: the Mining Tax. Also there’s the problem of ‘workers exploiting themselves’. Collective capital formation (workers - and hopefully citizens - holding what collectively is a significant share in capital) is a potentially democratising force. (I specify 'citizens' as well so as not to exclude non-capitalist citizens who for whatever reason are outside of the workforce ; eg: pensioners) Hence my support for democratic collective capital formation as policy. At this point it’s a good outcome. But it also creates complexities which would be hard to resolve. So importantly I'm talking about a process - in this country and globally - which spans decades - and maybe more. The transition from feudalism to capitalism was a kind of revolution - which took maybe a couple of centuries. Why not be a revolutionary over the long run?


Indeed the Guaranteed Minimum Income that some of my critics support (and I support as well) itself has revolutionary potential - by getting rid of workers' dependence on selling their labour power to capital in order to survive. Perhaps critics are just worried some Liberal will take the word "revolutionary" out of context ; and depict us all as terrorists or the like? But where do you draw the line then? Do we stop talking about socialism as well? Do we stop talking about 'capitalism' as anything less than 'an eternal absolute'? A truly 'closed system' ; which cannot be relativised or criticised ; and with no way out?



I'm a 'revolutionary' in the sense I support not only political citizenship ; but also social citizenship and economic citizenship. That's how some Swedish radicals viewed the question interestingly enough. 'Economic citizenship' would be a revolution to democratise the economy. 'Social Citizenship' involves the extension of social rights ; including those delivered via the welfare state, regulated labour market and social wage. 'Political citizenship' WAS the political and liberal revolution. And it's not necessarily finished yet either. So what's really so objectionable about all this at the end of the day?"


Finally and interestingly: the ‘Austro-Marxists’ (arguably one of the theoretically-most-significant tendencies in 20th Century European Marxism) talked about "slow revolution" ; especially during the interwar period ; Which they meant in a very similar way in which I use the word. They were also amongst the first to theorise 'multi-culturalism' - in the context of the pre-WWI Austro-Hungarian Empire. (ie: 'what would replace the Empire?')



The idea of 'revolution via democracy' is not new or unprecedented. And Yes - if Bill Shorten started talking about it at this point then it would confuse people. I doubt it reflects his world-view in any case. But here on the relative margins we can discuss it ; and maybe we should discuss it within the ALP Socialist Left (internally) as well ; as part of a process of working out what the ALP Socialist Left really stands for these days. It’s a long struggle to rehabilitate the language and substance of democratic revolution from shallow understandings. (ie: that 'revolution' means 'violence'.) But I think it's worth it in the long run. And it is crucial that people see we're NOT suggesting a 'revolution against democracy' ; but rather "a gradual, democratic (and hopefully peaceful) revolution FROM WITHIN democracy - to EXTEND democracy.

150th Anniversary of Capital : Marx still Highly-Relevant Despite the Critics

Debating Marx's ‘Labour Theory of Value’ and 'Marx on the Environment' on the 150th Anniversary of Marx’s ‘Das Kapital’ (Vol I) ; Responding to the Critics.

Dr Tristan Ewins  ; September 2017

At the ‘ALP Socialist Left Forum’ Facebook group we’ve been discussing Marx’s ‘Labour Theory of Value’.  This is notable because this year is the 150th Anniversary of the publication of Marx’s ‘Das Capital’ (Volume One).

In the relatively-near future I intend restructuring, editing and partially-re-writing a speech I made on that subject.

But for now I would like to discuss Marx's famous 'Labour Theory of Value' specifically.  (and also whether or not Marx 'valued' the natural environment)  Another contributor basically argued that ‘labour theory of value’ (as argued in Capital Volume One) was defunct ; and that it led a lot of people to reject Marx.   This is a pretty common response ; and certainly ‘bourgeois’ responses to Marx have often fixated on discrediting his ‘labour theory of value’.  This has arguably been partly for reasons of interest – and hence a wish to discredit the argument that labour is responsible for all ‘values’ in terms of goods and services. (with the exceptions of land and the natural environment)   But there have been philosophical arguments about the nature of ‘value’ as well.  And there has been much confusion because for Marx ‘value’ is an analytical category with a specific (non-mundane) meaning.

Typically respondents have argued that ‘value is subjective’.   And indeed in my PhD Thesis I approved of (Marxist Revisionist) Eduard Bernstein’s merging of ‘objectivist’ and ‘subjectivist’ elements in his critique of Marx’s Labour Theory of Value.  Therein I argued that Marx did not account sufficiently for the relative privilege of what may be called the ‘labour aristocracy’.

Anyway: Having studied Capital more closely now, though, I feel in a better position to respond with greater confidence.  Here’s my understanding, now, of ‘Labour Theory of Value’.

My understanding is that Marx's labour theory of value is in some ways a self-referential system ; and it makes sense on its own terms. To begin you have to distinguish between the price of labour power sold to employers as a commodity and 'labour theory of value' where ‘value’ is ‘the amount of labour congealed in commodities’.  Though truly the idea of "average socially necessary labour time" does not distinguish between different *kinds* of labour.  That said: Marx does not deny a subjective element to items' values - or to the use values AND exchange values of different kinds of labour power ; He even recognises differences in the relative value of different kinds of labour power at some points in Capital ; but it's true that he doesn't explore that in enough detail. It’s a complication with regard his system and perhaps hence he neglects it. We are unclear how different qualities of labour should be recompensed under socialism for instance.  So yes, there are deficiencies in some of Marx’s notions even though they are internally consistent.

To elaborate: There is a problem not only with the *mechanism* or ‘process’ of Surplus Value Extraction (in the context where all value is ultimately created by labour ; so Surplus Value can be argued for as ‘unpaid labour time’)  ; there is also a problem that while some workers experience extreme alienation (ruinous working conditions, lack of creative control or fulfilment) in return for bare-subsistence, other workers (while technically exploited) experience superior conditions (including pay, creative control, prestige, career paths) ; and historically this is played upon to disrupt solidarity within and across the working class.

But also: While Marx DOES recognise the role of Demand and Supply on the price of labour power ; he does not consider as such ‘the relative worth’ of different kinds of labour once skill, difficulty etc are accounted for.  So under democratic socialism what kind of differences of recompense are possible – or even desirable?  How for instance do we promote solidarity and mutual respect ; but also some reward for skill, difficulty, effort and so on?

Nonetheless *Surplus Value* makes perfect sense. That is: workers *broadly* are paid the means of (relative) subsistence (a privileged minority (labour aristocracy) receive considerably more than the average) ; but there is not "an exchange of equivalents" ; the employer extracts surplus value from workers' labour.  The worker is only recompensed proportionate to a fraction of what he or she creates. That much makes sense. Also 'Labour theory of value' makes sense in that values (as defined by Marx) are created by labour ; and Capital is 'value in motion' ; a process for the cyclical creation of values ; and the production of surplus value ; and hence the reproduction of the capital relationship ; and capitalism generally.  Wages maintain workers at the relative level necessary for subsistence. The surplus is extracted both to pay for the maintenance and expansion of production ; and also for the maintenance of bourgeois lifestyles. All that makes sense. And no wonder capitalists and their apologists have strived to discredit Marx ; because the analytical category of surplus value implies a devastating moral critique of capitalism.

Theoretically some return on (small) investments of capital may be warranted ; because of the real sacrifices the small (working class) investors and some petty bourgeois make. But once you start talking about the bourgeoisie proper it's a different story. Only the bourgeoisie proper has access to such credit or reserves so as to overcome the barriers to entry into certain markets. And whatever risks and initiatives the bourgeoisie take ; the fact remains that Surplus Value is extracted. And what is more that the working class is separated from the means of production ; does not control the means of production ; must labour under the capitalists’ terms and labour discipline ; does not usually have creative control over its labour ; is often employed in monotonous, partial tasks which are profoundly alienating.

So there are big problems with capitalism that Marx is still very useful in analysing. Though he also observes capitalism's inbuilt tendency to drive innovations ; in search of what he calls Relative Surplus Value.  (think of it as a 'temporary advantage' in terms of quality or productivity - often driven by technological advances) That - in tandem with what Marx calls 'the Coercive Laws of Competition' - means that capitalism still drives an enormous amount of innovation and technological development. But capitalism proceeds at a terrible cost to some workers. Especially if you're at the wrong end of the Imiseration process ; ie: if you're a textiles labourer in Bangladesh.

‘Imiseration’ refers to class bifurcation ; as well as absolute impoverishment and ruination – which Marx anticipated.  Relative Western prosperity – largely delivered by technological innovation, qualitative developments, as well as improvements in technology-driven productivity ; has been argued as a refutation of this. But arguably absolute ‘Imiseration’ has also been ‘displaced to the Third World’ ; with an ‘outer dialectic’ where Colonial/Imperialistic exploitation of ‘peripheral’ economies provides ‘relief’ in Western (core) economies.  (eg: cheap consumer goods for Western workers) Nonetheless we do see ‘relative imiseration’ WITHIN Western (core) economies as well ; as with the exploitation of the working poor within the United States. (hence perhaps an ‘external’ aspect to the ‘inner’ dialectic  of class struggle within the US ; ie: middle income (working class) living standards are supported by the exploitation of the working poor) And the global capitalist economy (having integrated economies the world over ; and having integrated the labour-power of women) is again pressing its limits ; leaving the question “what next for growth (and hence capitalism) – if not greater intensity of labour?  (and hence further attacks of the rights of labour)

In summary, David Harvey argues that Marx's Capital (Vol I) makes the most sense when applied to 'economically Liberal' or 'neo-liberal' capitalism especially.  This makes Capital (Vol I) highly useful for understanding Anglosphere economies which have largely gone down that path.  But admittedly Marx did not anticipate the rise of modern mixed economies, advanced welfare states, Keynesian demand management and so on.  Arguably these could comprise ‘stepping stones’ towards a socialist economy and society – while at the same time ‘stabilizing capitalism’.  (reducing cost structures and the like)   Marx is still highly RELEVANT ; but perhaps he is not on his own SUFFICIENT in responding to modern economic and social problems.

As for arguments that Marx did not recognise the  ‘value’ of Nature (one person at our Facebook Forum argued this) ; that is demonstrably untrue if you understand Marx in context.  Marx defines between use values and exchange values. Hence 'a beautiful rainforest' may have no 'value' in the sense of exchange value ; or Marx's schema of 'value' according to his specific (non-mundane) definition as ‘the labour congealed in commodities’.  But remember this is just a technicality based on Marx's definitions... It does not mean (literally) that Marx thinks 'nature has no value'.  Again; In Marx's scheme 'value' refers to the labour congealed in a commodity. But 'USE VALUES' are something else entirely. Marx recognises that things can have USE VALUE without comprising 'values' according to Marx's particular (contextual) definition. So 'a beautiful rainforest' can have a 'use value' in the sense that human beings can appreciate its beauty. And 'nature' may have the 'use value' of being necessary for the reproduction, health and happiness of the human species. Though it’s true Marx doesn't consider what some might call the 'intrinsic value' of nature.  Deep Ecologists may not find as much of interest to them in Marx.

Similarly “work/life balance” has value ; as do domestic and voluntary labour ; as does education, philosophical and scientific enquiry , and art ‘in their own right and for their own sake’.  But capitalism does not ‘see’ or ‘encourage’ the identification of these – EXCEPT insofar as they can be manipulated to somehow magnify exchange value ; ‘creation of ‘values’ in the capitalist context ; production of surplus value ; the self-expansion and reproduction of the capital relationship on which bourgeois power, privilege (and arguably purpose) rest.

On the 150th Anniversary of Capital (Volume I) it is worth revisiting Marx ; and questioning some common assumptions.  In-so-doing we encounter a thinker still highly relevant for the current day. 
Even though some (eg: the ‘Post Marxists’ Mouffe, Laclau and others) have suggested revisions and alterations which are also highly useful, and sometimes inspiring.  The 150th Anniversary is as good a time as any to ‘return to Marx’ and to work out what he’s really saying ; and not just depend on the second-hand accounts of bourgeois-Liberal economists.