Impending crisis, the broken rules of the system v the 90%

Here, Michael Roberts gives a good overview of the global picture regarding new levels of instability in the economic system. Instability is an intrinsic feature of the capitalists system we live in.

He starts as follows:

The US stock market turned volatile this week and has now erased all the gains made up to now in 2018 in just a week or so.  So much for Trump’s boast that things for rich investors have never been better.  The fall in the US market has been matched by similar drops in the European and Asian stock markets.  The all-world index has had its worst performance since the Euro debt crisis of 2012.

— Read on thenextrecession.wordpress.com/2018/10/25/correction/

What does it mean for Australia?

Australia is affected, and the impact will sharpen in the months ahead as the national election gets closer.

Living in denial is dangerous. Governing in denial is destructive. Campaigning in denial is not very smart.

That does not mean giving up. It does means re-thinking the campaigns we are active in and how we join in them, and bringing others with us. Many of our demands will be just as valid. We will have to be tougher and more united in defending and winning them.

Living … in brief

Among other things, profits and profitability will fall. There will be bankruptcies. If you are a small business employer that possibility is very sharp. If you are a worker with a job, the likelihood that you will lose it or be pressured to take a big cut in wages will escalate. If you are a worker without a job there will be downward pressure on your social welfare entitlements. Just surviving will be tougher and we will have to resist a louder call to blame it on refugees and migrant workers. It will infect our thinking and our social solidarity instincts or, it will make them stronger.

Governing … in brief

The LNP government is preparing to leave the next economic crisis to the market. Deciding to do that takes about 5 minutes and means the government is not in control.

In the meantime, they will seek to get re-elected on the basis of “their record”: current growth numbers, reduced unemployment, and very low strike figures.

Growth as GDP is barely adequate.

Unemployment has fallen. They say, for example Kelly O’Dwyer (the rather shrill and vacuous Minister for Employment and Workplace Relations), that unemployment is at 5%. She is using the volatile nominal figures not the more reliable “trend” figures that say it’s a bit higher. I haven’t seen an interview with her that deals with that.

She also does not talk about underemployment. That is now rising and more entrenched.

Campaigning … brief, but not so brief

On climate change …

Apart from the big and growing campaigns against the Adani mega coal mine there remains no coordinated national campaign. There is rich potential for this in the dozens of small initiatives and mini campaigns.

A thousand flowers blooming, each one in its own paddock, will not be good enough to win the battle to reverse climate change.

On workers rights and Changing the Rules …

The union movement’s campaign to “Change the Rules” (CtR) that seeks more power in the hands of workers to reverse inequality and poverty will be affected by instability and new crisis.

We must factor impending crisis into our strategy. Not to do so would be negligent.

Electoral intervention will not be enough.

This is true for those who want the campaign to be focussed almost entirely on getting a new Labor government. That is, an electoral strategy that focuses on the marginal seats that the Labor Party must win.

If the crisis hits not long after such a government, as it did in 2008-9, that new government – on historical form – will seek that we retreat from our most important demands. They will join with the employers, albeit with some reforms to make retreat “excusable”. Recent and longer history says that the dominant (these days) laborist tendency in our union movement will go along with that.

Compliant industrial strategy will not be enough

The CtR’s current industrial strategy is to comply with the rules (even though a percentage who attended last week’s rallies did not do that) and then whinge about them through social media and national union leader media appearances.

This is a dead end strategy because it leaves both union and non union workers fully exposed to the bankruptcies and wage cut demands that go with economic crisis.

The champions of the dead end approach are also champions of rules that restore arbitration powers to the Fair Work Commission and inspectorial and prosecuting powers to the Fair Work Ombudsman. They oppose a comprehensive “right to strike” that puts power into the hands of workers, union and non union alike.

A prospective new Labor government relies on the “dead end” champions as it prepares to win the election with the focus on the ALP National Conference in December.

A defiant strategy: electoral and industrial action before and after the national election

For those who want an strong, interventionist industrial strategy for CtR that interacts with the electoral strategy and also escalates the priority on the “right to strike”, the impending economic and climate crisis is also a big deal.

If we are “fair dinkum”, the need to change the rules by defying them – a big part of Australian history – will rise.

There is a serious option: a minimum wage increase

The National Minimum Wage Review starts soon. The Fair Work Commission will announce a timetable at any time in the next few weeks. The Review process will then start and traverse through to June 2019. This is the period leading up to and probably just after the national election.

In the next few weeks, the ACTU will prepare and present a proposal for a minimum pay increase by taking all minimum wages – the statutory and award based minimums closer to a “living wage”.

Lets start discussing that proposal now even, if necessary, before it is formalised.

Lets build an industrial campaign, reinforced by our efforts in the key electorates, that puts pressure on employer organisations, the government and the Commission to accept that proposal.

Otherwise they will dominate the public debate with the economic c risks logic of 0% increase.

All methods and tactics of campaigning can be harnessed into such a campaign.

It can be designed to appeal to all of those workers who are not in unions but who try to live on the minimum wage and those whose thieving employers pay below the minimum.

The 90% in charge

The modest efforts that the Rudd Labor government produced in 2008-9 to deal with the economic crash back then will be inadequate. They complied with the financial management rules of the day. But we know the rules of the finance system are stacked for the 1-10%, even more today. They must not be allowed to dominate “governing” as the crisis strikes and takes effect. Unless the 90 % take charge, the 90%, and the natural world we are dependent on, will suffer horrendously.

But we also have the rich working class potential to develop and win an alternative.

Not just workplace relations, a whole network of broken rules!

The ACTU’S Change the Rules Campaign draws attention to the “broken rules” – from the point of view of workers – in the Fair Work Act 2009. The campaign is borne out of a system that adds to employer power and this enables wages repression. The system thus contributes to growing poverty and inequality.

Broken rules galore

At the same time we can create a list of other “broken rules” that attack the environment we must live in, living standards, democracy and humanist values. For example:

  • First Nations peoples exploitation, oppression, incarceration
  • The finance and banking system
  • Taxation – powerful corporations pay little or no tax;
  • Social welfare payments – denying a dignified life to tens of thousands;
  • Climate change – now no rules at all;
  • Trade policy;
  • Immigration and refugee policy;
  • Corporations law.

One can go on.

Put the transnational corporations in even stronger command?

It is clear that parliamentary democracy, in its current, Australian form has seriously broken rules also.

On climate change the government has morphed into being so bad that the large corporations are saying, through the Business Council of Australia, that they will go it alone on climate change mitigation.

Maybe that has been the objective all along.

Let the most powerful have more power to control the future. After all, that’s 21st century capitalism.

Its not just the LNP government who is the protagonist, although they are at the extreme end. The ALP is a co-creator of some of them, or insipid in its efforts to “solve the problem”.

Recently, the TTP (trade policy) is a good example. A closer look at Labor’s control of the negotiations for the Fair Work Act 2009 that reproduced or established “the broken rules”, reveals another.

Broken rules: separate? Or connected?

The big question is: are all of these sets of broken rules separate and discrete?

Or, are they – in various ways – connected and mutually dependent … systemic?

If the answer to these is “No” and “Yes”, that must lead to a very different response from all of those engaged in the largely discrete struggles and campaigns against them.

The challenge from a real alternative: the seeds within the separated struggles

All of the separated struggles contain an analysis of what is wrong with the :”broken rules” and, to one degree or another, an alternative set of ideas, proposals and sometimes specific demands. Many stand well as a real alternative, new rules that are democratic and reverse exploitation of people and nature, many require further development in the realm of power and democracy.

Defeating the sets of requires a unifying programme of demands and proposals, and a strategy for a unifying Organisation that can bring them together and put them in the hands of the people for further development and political pressure. That would include an approach that “unites the identities” (gender, race, ethnicity, sexual preference, disabilities) based on a working class framework.

The driving principles would be solidarity and unifying across the struggles, more power in the hands of the people, especially at work, equality, environmental renewal, and equality.

Leaving the politics of dissatisfaction as they are now – an inadequate combination of 1) silo campaigns, 2) protest driven electing of “independent” and right wing nationalists, and 3) click activism – will not put the majority in charge of their futures.

Understanding its reality is the first activist step towards preparing for the next economic crisis

Global economy is facing a ‘perfect storm’

BIS fears that increasing protectionism could reverse decades of progress.
http://www.smh.com.au/business/the-economy/global-economy-is-facing-a-perfect-storm-warns-bis-chief-20180827-p4zzzq.html?btis

You don’t have to agree with or understand all of the stuff in this summary of what one of the major architects of “our” twenty first century capitalism is saying, except that another economic crisis is just around the corner. It will dovetail with the destruction of more climate change.

Among the experts I understand the Bank of International Settlements (BIS) is the international bank of banks.

The crisis they expect will have very serious consequences for any Australian government, the Change the Rules campaign, and all Australians. It will reach into every nook and cranny of all communities of the world.

Every single democratic and social justice campaign will also be affected. All will have to work out on whose side they will stand.

Will corporations and governments be permitted so much control over the handling of the crisis that the recovery that might follow is for them only?

Will campaigns like “Change the Rules” concede major demands that give more control to workers to win the even tougher struggles that the crisis will bring? Or, will it allow new control in the hands of institutions like the Fair Work Commission to resolve conflict through “consensus” and “even handedness” and “fairness”?

This is union activist business and part of their business is to make sure, even when union and political leaders are sluggish about it, that the problem is discussed among members and potential members.

Of course this should include discussions with a prospective Labor government and the Greens – including at the local level – that drive towards a government that enables much more power in the hands of workers to deal with the destructive effects of the crisis on their lives.

Understanding the reality of another crisis enables the possibilities of a different resolution to last time, a resolution that enabled continued destruction of the environment and more inequality … and an even more destructive next crisis.

The challenge for all genuinely democratic forces is how to transfer power into the hands of the majority and to therefore break the cycle.

This means the development and popular spread of an alternative programme of change for the majority – economic, political and environmental. Much of the content of this programme already exists in the mainly separated demands of the thousands of organisations that are struggling in so many different, and mainly separate ways, against the pressures on their lives, including our precious environment.

Australians could well look towards the largely coherent programme of the Corbyn forces in the British Labour Party for an example of what is meant. And examples exist in our own history. Both the ALP and the Greens have some good material in parts of their programmes. But both end up wanting to maintain the system that causes the big problems for the majority.

The next economic crisis … are we ready?

Tricky questions for activists and their leaders

Mid September is the tenth anniversary of the collapse of Lehman Brothers, the American transnational “investment” bank. Some say the collapse was the real signal for the 2007-9 financial and economic crisis that spread quickly and globally and, ruined the lives of millions of workers around the world.

What appeared to be the cause was the USA’s sub-prime housing loan default contagion. But that left begging a simple question: what was happening to the real incomes of so many workers that there was no choice but a sub-prime loan for a house to live in?

In Australia, the new Rudd Labor government, elected in 2007 off the back of 2 big campaigns, the Your Rights at Work Campaign, and the campaign for government action on climate change, inherited the management of the crisis, as its contagion spread through 2008-9.

Since then, in the period of “recovery”, rising inequality, driven by legalized wages repression, and dramatically deteriorating living and working conditions arising from climate change have occurred. For the majority everywhere it is as if there has been no recovery.

What does it mean that 21st century capitalism cannot deliver equality and environmental renewal even when it is “recovering”, or “not in crisis”? Is there any evidence that there is a capitalism that can exist without crisis?

Its possible, probably likely, that the next economic crisis is not far away. Especially in the light of Trump’s trade wars and his destruction of debt free spending power in the USA. And there are the dramatically worsening effects of the climate change crisis that interacts with that.

In Australia, the next global economic crisis may coincide with a new government that says it will break from the “trickle down economics” that is helping to bring it on.

What will the next crisis do to inequality and environmental degradation? What will the twin crises do to the lives of tens of thousands whose circumstances have been worsening while the extreme rich get richer?

Other questions flow. Should we pretend that its not going to happen? Can the crisis be averted? And, what will it do to the growing Change the Rules Campaign especially its key demands for new and “fairer” rules that enable workers and unions to reverse inequality? Can campaigning organizations prepare for such events so that the momentum they have been building is not lost? Can crisis be used to increase momentum for deeper and more meaningful change?

Such questions are relevant for all organizations and movements of the people against the “powers that be” and their government. Unless the preference is to pretend or hope that it won’t happen.

How do we know there will be another economic crisis soon?

The key word is “another”. Big economic crises are intrinsic to the way in which capitalism works, including contemporary global capitalism. They come along every 7 to 12 years and then leave in their wake millions of people whose lives are more or less impoverished by them. Experience, not just statistics but those also, tells us that recovery is for the few. Increased impoverishment contributes to the next crisis.

What was done in 2007-9?

Governments “dealt with” the crisis in various ways. Transnational corporations and global banks worked closely with governments to get a “make the public pay” policy working.

In response, Obama, governing “the home” of the crisis, dirtied his nappies by rescuing the big end of town.

In Australia, Labor’s Rudd-Swan-Gillard team applied a minimal Keynesian style solution that softened for many in the Australian 90% the worst effects of the crisis: immediate government spending and a bank guarantee. Their approach inflicted little, if any, pain on those in the 1-10% who were the protagonists in the processes that gave it birth.

Just a few years later Abbott and Hockey created their ongoing solution: harsh austerity. They were rejected for that but, under Turnbull and Cormann, this approach is not yet defeated.

And the next time around?

The next crisis will not be good for the vast majority of Australians. Some will cop it worse than others and, worsening climate change will add to an even more desperate plight for the 90%, far more than the 10%.

More specifically: what will happen to wages and inequality? To job security? To Newstart and other social security payments? Will there be new cuts to public education, public transport and public health care? Will there be development funding controlled by First Nations communities to replace the racist, bureaucratic controlled CDP? And the nation building character of the Uluru Statement? And what about the serious problems we all see in parliamentary democracy?

We know the current government, because it has the form and the genetic make-up, will insist on more austerity to far more than those suffering from it since 2008-9. Actually, there is no sign the Turnbull government is making specific preparations to prepare for the next recession. Admitting that a crisis is building would acknowledge that they have not been managing the economy very well. Their mantra that they, as an LNP government, are more competent to handle the economy better than an ALP (plus Greens?) “alternative”, was not true of the last crisis.

Labor as an alternative government?

If there is a change of government, the ALP and its co-governors (cross-benchers) will inherit (again) an economy in or about to enter crisis, through no direct fault of their own, and the massive task of climate change reversal.

As the alternative government, the ALP would prefer that the crisis hits before they win government. Then they can blame the LNP for it.

What will and should they do? Should they repeat the 2008-9 formula but with improvement (remember “pink batts”)? In whose interest should they govern? What will the powers that be in the Business Council and other employer organizations expect of them?

What about unions and “Change the Rules”?

What should our union movement prepare for and demand? Is the prospect of crisis union business? Is this the business of union members? Are our union leaders actually on to the problem?

Right now our union movement is investing primarily in a massive effort to bring down the Turnbull government, especially through the “on the ground” field campaign in marginal electorates through the Change the Rules Campaign. The ACTU trialled the campaign in the recent by-elections in the seats of Longman and Braddon. Without these union driven Change the Rules Campaigns it is arguable that Labor would not have held these seats.

The spread of these campaigns to other electorates is strengthening.

It is likely that a Labor government would push extra reasons for minimal changes only to the broken rules of the Fair Work Act 2009?

How much should our movement accommodate this, if at all? Is this just a decision for key union negotiators, as in 2007-9? The employers will expect moderation. And the “lefty” Deputy Leader of the ALP, Anthony Albanese, says Labor must work better with business. In 2007-9, as Workplace Relations Minister, Julia Gillard brought the employers into the consultation process on an equal footing. Together the spirit of consultation produced the “broken rules” that have hamstrung the workers through the years of “recovery” since. Through Albanese, is the ALP in 2018 setting itself up to repeat the dose?

Some final points: sleep walking or pro-active toughening?

Australia is a middle sized capitalist economic power. Anyone who believes that we don’t have much to worry about because of strong “growth” in the USA, continuing strong demand from China and new market possibilities in India is deluding themselves.

The character of the next crisis will be shaped by three forces, the first of which will shape the other 2.

First, from within the intrinsic global instability of the system, the contagion might start from within the financial sector again. Or, maybe from even deeper economic processes that are dependent on human labour power. The USA, again, might be the source, or somewhere else. Trump’s deliberate trade conflicts might add specific characteristics that were not so relevant 10 years ago.

The government of the USA and its interactions with “Wall Street” and other transnational corporations will be significant. What will the most powerful transnational corporations demand? Will they intervene modestly, deliberately allowing “the market” to clear out its blockages? Or, will they approve a mild Keynesian type stimulus, based on increased government social spending and money supply, especially in a form that protects their wealth and control.

Third, there will be the response of the organizations of the 90%, the working class – unions, leftist political parties, environmental, women’s and anti racist movements, and their various organizations.

Will these they allow the crisis to run its course, complain loudly, and “trust” in government to manage the process? They might advocate modest intervention in which tripartite processes of working together see it through?

Or will they intervene – put the people’s pressure on – to oppose the core dynamic of the crisis, and any tendency to resolve it by making the 90% suffer for it? What will be the demands that would make a people’s programme that protects the people”? How might such an alternative programme and effective strategy the developed?

This can only start by acknowledging how real the threat of crisis is in the first place. And behind the economic crisis there is a class based political power? Would a crisis pregnant with the possibility of new people’s power in government be encouraged? Or dampened?

Happy Birthday 200th Birthday, Karl Marx!

Karl Marx, Helen Razer and May Day 2018: Marx’ 200th birthday Anniversary – May 5th

In Australia, in the middle of our month of actions to build the Change the Rules Campaign, we should pause for a while to celebrate the 200th anniversary of the birth of Karl Marx, May 5th.

That might be a big ask for many Australian labour movement activists. And probably also for those of you in the First Nations liberation, environment movements, feminist activity, anti-racism, refugee solidarity, and so on.

Therefore, “Why pay attention to Marx?” 

Back in the nineteenth century Marx gave our forebears – the workers of the world – the first coherent and worker oriented explanation of how capitalism worked in his day, and some basic principles for a true alternative, a true socialism.

21st century capitalist society is quite different from way back then, but in its essences it is so much the same. There is a connection between the way in which 21st century capitalism is different and the way it is the same. We are still living in a world of exploitation, with various levels of hyper exploitation, of both the majority of humans and of most of nature as we know it. The exploitation is driven by the dynamic of the system.

Karl and Fred, with Jenny and some others lending a helpful hand in many ways (see the recent bio, “Love and Capital”), explained that dynamic thoroughly. Even right wing commentators in the financial media can’t help but recognise it, especially to understand the 2007-9 financial crisis and why it is taking so long for a recovery to happen, and that so far there is no recovery for the lives of billions of humanity.

It’s worth paying attention to Karl for lots of reasons, including a sparkling and at times bawdy wit, and his contribution as a refugee solidarity activist with the rest of his immediate family (again, take a look at “Love and Capital”).

Earlier this week we in Australia were reminded in several ways why millennial workers, and others like me (post ww 2 generation), might find using a marxist approach to understand wtf is going on worth the effort.

They included the media coverage reports of

– what the Australian government is going to do to continue the failure of successive governments to tackle and reverse climate change at the rate that is desperately needed;

– and, the housing crisis: there was this summary of a new report from Anglicare that told us, among other horrible things, that out of 67,365 rental properties surveyed across the country, only 3 were affordable if you needed Centrelink (social security) payments;

– and this that described precarious employment plight for workers of the millennial generation … unemployment at 12.5% average, double the general average, underemployment at huge levels, the government driven destruction of vocational education and the apprenticeship system, and “wage theft”, the systemic payment of wages at less than the legal minimum rate.

Helen Razer and Marx

Helen Razer is a popular and sharpish marxist social commentator. Her most recent (2017) book is “Total Propaganda”, a plain speaking, witty and bawdy (in a way that Marx and his household would smile at) 21st century introduction to Marx and Marxism for workers of the millennial generation. I recommend it as a good (with a couple of weakness though) 21st century introduction from an Australian starting point.

Her Introduction includes this:

“You guys have it bad … There is nothing character building about not being able to afford a permanent place to live. There is nothing fun about a shrinking job market. Stagnant wages are not exhilarating.”

And this:

“You are not a pussy for feeling that the world has failed you. The world has failed you, and it’s hardly your fault that its systems have begun to break down. You guys are not choosing to flit from job to job. You are not choosing to hurt those Chinese and Congolese workers who made that iPhone with their blood. You did not throw your chance at a home after a gourmet sandwich.” (You can read the next bit yourself “Oh Millennial Sandwich Eater.”)

At the end there is a chapter about what to do about it and also a pretty good suggested reading list.  (It leaves out a couple that I would recommend. For example I would include Terry Eagleton’s equally entertaining “Why Marx Was Right”, and Malcolm Robert’s blog posts that offer good plain language explanations of how the economy we live in right now is working / not working, based on key marxian ideas, see below.)

In between there is a sparkling overview of how Marx was motivated by his passion for freedom for all people by analysing how freedom worked (works) in a capitalist system, including its cultural and political dimensions, not just its economic. She points also to what she sees as weaknesses in Marx’ thinking.

She gets into 2 key “economic” concepts essential to understanding things like exploitation and recurring and irresolvable crises. They are the labour theory of value and the tendency for profitability to fall. She doesn’t quite nail these, nor the value of dialectical thinking (eg capitalism changes by staying the same, but retains its impulse into crisis and inability to fully recover from it.)

She does nail pretty well Marx on alienation and the fundamental reality that our material existence is the foundation for all else. Its also funny and entertaining, using the “problem” of masturbation as the starting point.)

She also grabs hold of another core Marxian idea and shakes our brains with it: “The free development of each is the condition for the free development of all”.

This is a good entry point to understand the essential difference between individualism, as lauded by the employers and their Liberal Party, and individuality. The promotion of individualism – rooted in selfishness, greed, self-centredness – is a central idea of 21st century capitalism, just as it was in Marx’ 19th century. The material economics of individualism – capitalism – kills individuality. Individuality – the precious unique potential of each human being – nourishes and amplifies the possibilities for each one of us and, in itself, is dependent on the power of workers uniting across the boundaries varies of gender and race.

Her “what is to be done” chapter is simple and powerful: get engaged including through study and thinking. Act. Bring identity politics into the common struggle against exploitation and hyper exploitation. Study exploitation using Marx because his legacy provides the best perspective for doing that. It’s time for that now and over these next few years. No more whinging.

The place for millennial workers is in the struggle to Change the Rules, in the workplace. Its rescuing our environment. Its standing in solidarity with our First Nations peoples. And so on. It’s on the streets for May Day. It’s in the public meetings, the rallies, the demonstrations and the meetings that plan them. It’s in the development and driving of strategy, from below and the mid-levels of our movement, not just leaving it to “heroic” leaders, elected or otherwise. Its breaking out of the boring cycle of rapacious LNP governments followed by marginally better (oh we should be so grateful) Labor governments, followed by … more getting nowhere at all.

Everyone has the potential for it. Find a way.

Australia’s weird new Federal Budget that advocates rapid wages growth: a quick critical note on the commentary

Here, Greg Jericho joins with other mainstream economists in agreeing with the lead analysis of Jim Stanford’s Centre for Future Work, that LNP government’s Budget expectation (requirement) for wages growth is not happening and shows no prospect of happening.

Again the usual high quality info from Greg. But this time, the analysis about why and what might be done is quite shallow, even absent.

Greg’s statistical causation focuses on underemployment. There are other deep factors at play than competing statistical tendencies.  But what establishes and further enables underemployment, and what is its connection to unemployment?

Another deep factor in keeping wages low is the Fair Work Act 2009 systemic, repressive scheme of penalties against workers who seek to exercise their SOLIDARITY power to improve their wages or to improve their job security. The Turnbull government’s only major change to Labor’s own version of this anti worker, anti solidarity wage and conditions fixing regime in the FWA is the harsher penalties against construction workers, including their extension to workers and their unions who do work in association with construction.

This is because Labor’s regime for bargaining and national wage fixing is working perfectly well for employers, not workers, as it was designed to do. This is one of the essential planks of neoliberalism, or Labor’s “neolaborism”, that is not going away … yet.

It beggars belief that this government, and arguably an alternative Labor government, will change the FWA so that workers can help solve their weird wages problem in the macro economy.

The other factor in keeping wages low is the union movement’s failure, so far, to develop a significant strategy that will genuinely restore worker’s right to strike and other forms of collective action, that will include rights to deal with international competition on wages etc., include climate change transition as a bargaining issue, and put worker solidarity back into both minimum legal rights and the development of society.

Mixed up in all of this is the “little matter” of profits. The discussion about profits, or its absence, in Australia is pathetic. Not just the volume of profit, but also what profit is, the exploitation of humans and nature upon which it depends, and profit in relation to total investment, that is the combination of investment in machines, hardware, software development, etc and the workers who bring all of that to life through their labour. We cannot understand the significance of the “wages problem” without grappling with profits and investment. Traditionally, Keynesians are not very good at that. So, we turn instead to our potential as union activists to do it properly?

Tsipras: the reverse shock doctrine

I think this helps to understand what SYRIZA is trying to do. It must continue to build its base in Greece and extend that beyond to other countries in a similar situation: suffering from the diktat of the Troika imposed neoliberal destruction of communities and societies. Their strategy appears to include NOT doing what the real enemy in the institutions of neoliberal capitalism either expect or want.

The ECB, QE and escaping stagnation (with an Australian perspective)

Who In Australia would trust the Abbott and Hockey (Liberal government) alliance with the Business Council of Australia to manage the economy in the next financial crisis?
Remember that when Rudd Labor came to office in 2007 it soon had to manage the impact on Australia of a global economic crisis, usually called the GFC. In a mild, Keynesian way they did a reasonable job.
Well, the Davos global ruling class gathering, frantically seaching for “inclusive capitalism”, and Mario Draghi are now talking and acting such that the handling of the 2007 crisis is now leading towards another global economic crisis, even before any real sign of recovery from the first one.
There is no chance that the Abbott government and the BCA will handle this “new” situation democratically, that is in the interests of the majority. Their current standards of competence suggest they wont even be able to handle it competently for their very own and precious 1%.
Well, that leaves the issue of the propect of a new Labor government, under its right wing led by Bill Shorten. What will they do? The next few months will tell us more.

Global Union Federation calls for international union soidarity for SYRIZA and the Greek majority

“The Greek elections offer a potential breakthrough, but to carry out their program a government of the Left will need massive understanding and support abroad. Unions should be in the forefront of building that support.”(Excerpt from IUF statement.)

The IUF is maybe the first Global Union Federation (GUF) to both argue the case and call for international union solidarity for SYRIZA and its programme to challenge the horrendous austerity capitalism imposed on the majority of Greek citizens.

SYRIZA have not yet won the election, but they are expected to do so.

The IUF article explains the failed history of previous efforts to defeat externally imposed austerity in other European countries. SYRIZA is different and provides working people around the world as well as the Greek majority, with a real alternative foundation against austerity capitalism.

Of course, the global ruling class, will be planning how to bring SYRIZA down.

The Greek ruling class itself has the bloody hands of repression of the people in its own history to stop socialist and democratic momentums.

We are all in the Greek majority.

– See more at: http://portside.org/2015-01-14/breakthrough-greece-austerity-and-solidarity#sthash.TO9PuXky.dpuf

Common Action to Oppose the first budget of the Abbott- Hockey / Business Council Alliance

Common Action, starting in Sydney, is trying bring together the dozens of points of opposition to the Australian neo-liberal Agenda of the Abbott government. And out of that develop a common, comprehensive and independent alternative economics and programme.

For more on Common Action click here and also follow them at their Facebook page and Twitter account.

As part of their actions they are organizing a post budget activists meeting, details as follows:

Wednesday May 21, 6.30pm-8pm,
Sydney Mechanics School of Arts,
280 Pitt St, Sydney.
6.15pm for a 6.30pm start
$5

What an excellent idea!

We use to do this in Adelaide in the 70’s and it was a great opportunity for young activists to learn about the political economy of budgets, especially how to analyze a taxation or spending decision (or proposal) through the prism of what it would mean for working people, the unemployed, women, ethnic communities and so on.

Those post budget sessions analyzed the Liberal budgets of the Liberal Party’s Fraser governments.

The sessions and analysis was led by political economists who were committed to plain language and working class oriented perspectives. Economics was thus demystified and turned into the common property of workers and other activists who had not gained either secondary or post secondary economic learning opportunities.

The contributors ranged from Keynesian and the more powerful critical analysis of independent Marxist views. However, there was practically nothing in the line of ecological perspectives. Women activists insisted, sometimes but not always with support of men, that the specific discrimination against women in budget decisions, be brought into the analysis.

After a few years these events waned but not before a new popular economic concept evolved: the social wage. The social wage described the connected impact on the standard of living of BOTH the industrial wage (the outcome of industrial, union led wage bargaining) and taxation / government spending, ie the social wage. We could see therefore, that in the dominant framework of Australian capitalism, the possibility that industrial wage gains could be nullified by a bad outcome in the social wage, mainly delivered in budgets Federal and state level).

The connections between inequality, the industrial wage and the social wage were described in an outstanding pamphlet: Australia Ripped Off. Australia Ripped Off was produced by the National Council of then Amalgamated Metal Workers and Shipwrights Union (now the Australian Manufacturing Workers Union). Its foremost author was the recently late Ted Wilshire from the unions National Research Office.  (Australia Ripped Off followed close behind an earlier pamphlet, Australia Up Rooted, that dealt with the impact on manufacturing industry of the biggest mining boom (up till then) in Australian history. Australia Up Rooted sets the standard in Australia for plain language economic education and learning for workers. It featured the wonderful cartoons of Bruce Petty.)

There is an opportunity for this revived form of activist learning re-ignite this class based, critical analysis of the Budget, connect that to what is happening to the finance sector, and integrate a strong environmental / ecological dimension. We lay, then, a foundation for a strategy that can eat away at the dominant economic messages of neo-liberal capitalism.

On this point, we who attend must demand that this is what the Common Action organizers provide: pressure from below can prevent the tendency for economic analysis that is soft and founded on assumptions that accept the dominant economic framework.

The system, 21st century capitalism, is founded in two interacting and mutually depend exploitations: the exploitation of most humans by a minority, and the exploitation of NATURE by that same minority. Associated with this, the system can at best offer only a very stunted form of democracy, that is, a somewhat compromised parliamentary democracy.

Finally, we can – collectively – build a coherent and unifying ALTERNATIVE political economic dynamic: both in policy and also strategy for that policy and its underpinning principals to challenge and become dominant. The potential for this exists in the dozens of campaigns that are points of resistance already to the dominant destructive momentum that is in our face every day.

These resistance campaigns are fragmented but they can be brought together and harnessed in a new and dynamically democratic alternative. We then have class based struggle happening again in a 21 st century form, just as it is forming in many other places around the world.