On Budget Eve: Deflation & The Limits to Privatised Keynesianism

 

NAA- M3130, 81
NAA- M3130, 81

Tuesday 3rd May will see the first budget of the Turnbull-Morrison Coalition government. It is also the date of the Reserve Bank’s next monetary policy decision. So it is an important day for fiscal and monetary policy. Like most people (including the well paid opinion-makers of the commentariat) I have no idea what the budget will contain. It is unlikely that the government will be able to break the impasse facing the state: a general tendency of slowing growth , rising state debt and a pool of sullen and largely inchoate opposition amongst the population to various attempts by the state to address both. The picture is complex. On this blog I have written a lot about ‘Capital’s Plan A’– the stimulation of the economy via infrastructure spending to be financed in part by cuts to social reproduction and through the ‘recycling’ (read privatisation or leasing) of state owned assets. This plan, at a Federal level is stalled, due in part to the 2015 defeat of the Qld LNP government on the question of leasing power assets. However the recent Victorian state budget is built around increased infrastructure spending financed by the leasing of a port and a higher level of debt[i]. Preceding the Federal budget there has been a warning from JPMorgan and from Moody’s about the potential for Australia to lose its AAA rating, projections from Deloitte about the size of the increase in both debt and deficit and,what surprised everyone, the release by the Australian Bureau of Statistics of the latest CPI figures showing .2% deflation in the last quarter (Australian Bureau of Statistics 2016d, Greber 2016, Janda 2016, Martin 2016). It is this last point I want to look at. What does this latest news tell us about the both the direction of capital accumulation and the tensions and fault-lines of antagonism that constitute capitalist society in Australia?

Continue reading “On Budget Eve: Deflation & The Limits to Privatised Keynesianism”

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Australia you’re standing in it part 2: Debt & Social Reproduction

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In part two of Australia You’re Standing In It I’m going to attempt analyse the relationships between state debt and social reproduction. In particular I want to argue that rising debts and continuing deficits provide a challenge to how social reproduction is carried out by the state. This directly flows on from the previous chapter as the core of my argument is that the rising debt and deficit of the Australian state are at least in part a product of the global stagnation of capital accumulation. This manifests in the drop in revenue caused by the winding down of the mining boom.

 

I want to emphasise the stakes of my argument. In mainstream debates in Australia debt is most often framed in one of the following two ways. For the Right debt is a cause, if not the cause, of economic stagnation and crisis. For the Left Australia’s debt levels are unproblematic and the panic over debt is a production of the fetid imagination of the neoliberals and/or a cynical manoeuvre to justify the sort of policies the Right always carry in their back pockets. Here I wish to reject both these arguments. Debt is not the cause of crisis but a particular manifestation or expression of it; but it is a manifestation that has its own contradictions. And debt levels whilst overblown by the Right do present a serious challenge to the state’s abilities to finance and carry out social reproduction. Also a new revelation for me, one often ignored in the debates about debt, but one that is obvious when you think about it, is the role that sovereign debt in the form of state bonds plays in the financial markets. The debate over state debt is also always a debate about securing the value and the profits generated by financial assets.

 

A limitation of my investigation so far is that since my methodology looks at the movements of capital from ‘above’ there is the risk that I can slip into a form of presentation that ignores the class struggle that goes on ‘below’ and throughout capitalism. There is a danger, from Marx on, that our analysis can be too ‘objective’ and not grasp the subjective role struggle plays in the corresponding unfolding of the dynamics of capitalism(Shortall 1994). (Perhaps it is possible to see class struggle as the struggle of humanity against its entrapment in the objective categories of capitalism). My challenge is to express how the ways the state funds social reproduction and the shapes social reproduction take are products and sites of class struggle. Spiralling state debt is an expression of our power – even if it is latent. We need to enlarge our understanding of class struggle beyond a model that sees it primarily happening within the confrontation between labour and capital in the work-place proper, that is move beyond a ‘factory-office-farm’ model (Caffentzis 2013, 242). We need to understand the complex and multifaceted struggles that happen across all of society.

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Not with a bang but a whimper: The End of the Mining Boom and the next Budget

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Shape without form, shade without colour,

Paralysed force, gesture without motion

                                                -TS Elliot

On the 12th May Treasurer Joe Hockey will present his second budget. The budget lies at the heart of the state’s efforts to reproduce capitalist society; thus understanding what is in the budget plays some role in interpreting the terrain in which we contest capitalism on. His previous budget was the centrepiece of a clear vision (a Plan A) to address the challenges facing capital accumulation in Australia and it lies pretty much in ruins. Facing the end of the mining boom and thus a drop in growth levels, profits, wages, rises in unemployment and Federal debt, the budget aimed to reduce spending on social reproduction and increase stimulative spending on infrastructure. The latter was to be financed in no small part through asset recycling (privatising state assets and reinvesting the funds). This was sold as a response to a ‘budget emergency’, a narrative that over-emphasised the size of Federal debt for political effect (just as the Left/social democratic narrative denied its existence). Added to this were efforts, coordinated on a state level, to disperse points of social contestation: the construction unions, ecological protests and community opposition.

Continue reading “Not with a bang but a whimper: The End of the Mining Boom and the next Budget”

Contradictions of Accumulation in Australia

Edited 25/2/14
In December 2013 I received criticism via twitter from ‪@redlizthompson‬‬ and ‪@Mitropoulos_A‬‬ for my participation in Historical Materialism Australasia 2013. Readers should obviously read this criticism directly if interested but to summarize it runs as follows: since I participated in the conference which was subject to a withdrawal due to the presence of speakers from Solidarity an organization whose National Committee had recently released an internal statement supporting the Socialist Workers Party UK’s cover-up of rape and sexualized violence then I either directly supported the behavior of the SWP/Solidarity or at least my public quietism on the question meant that in practice I supported it whatever my actual thoughts. The absence of a public statement critiquing the SWP/Solidarity effectively meant public support.

Also I was criticized for having friendships and political collaborations with then current members of Solidarity.

I am in two minds about this assertion about the necessity for a public statement. On one hand I find it odd. The vast majority of my political thoughts and opinions are developed with and shared within a very small network of close comrades and friends. The idea of making some general statement to some kind of public seems weird at best. My written work that does exist on the internet is most often an attempt to follow a very specific project or intervene in specific debates largely focused on Qld. In the past I certainly commented on everything and anything but I have tried to reign in this practice as I slowly realized I was often commenting on things I knew little about.

However supporters of the call to withdraw from HM have pointed out that public silence on questions of sexualized violence reproduces the split between public and private that is so bound up as part of the gender relations of the society we live in. That’s a hard point to argue against and I can’t.

Also when I posted the original post bellow I referenced the HM debated but made no statement of my thoughts. This I think was a mistake as the post itself is a public artifact and I should have taken the time to clarify my position on the issues. I don’t believe however that such a need to address the public applies to other HM participants on a whole.
So my thoughts:

• The behavior of the SWP was appalling. It is more evidence for that decades old feminist argument that Left organizations not only continue the patterns of violence and inequality around gender which is part of broader society but organizational cultures often entrench power-relations that facilitate abuse. The following ‘crisis’ is more evidence of the need for feminism to be an integral part of any revolutionary project.
• The statement of Solidarity was horrible and shows how loyalty to a political brand can be so destructive and pathetic
• I don’t and didn’t agree with the withdrawal– It seemed off-target. If the problem was Solidarity why not call for a boycott of working with them in all forums until certain criteria were met? Why call for a boycott of conference in which they were participants but no other spaces they work in? On the basis of these objections I didn’t participate in the boycott.
• Finally I expressed my critique of Solidarity’s statement to my friends and comrades that were at the time members. I didn’t make my friendship with them conditional on them doing anything about what I said. Nor should I have.

Below is the (edited) text of the paper I presented at Historical Materialism Australasia. This year’s conference happened in the context of a serious disagreement around sexual violence prompted in part by the SWP crisis. You can find some material on this here and here.
The below paper is fairly limited and suffers from conceptual and structural problems. However in the spirit of With Sober Senses I am happy to make it available as it functions both as a marker of the progress of my research and also as a fairly functional summary of my work so far.
In the discussion three major issues came out for me, and I thank those who contributed.
1. So far I still conceive of the public service/ state provision of reproduction as being too separate from capital accumulation proper. They are deeply and complexly intermeshed on the molecular and molar level.
2. More work is needed to further investigated how capital ‘thinks’ on the level of society
3. This kind of research needs to be careful that it doesn’t collapse into being a Marxian plan for a better capitalism – there is a tendency to do just that.

For capital there is no problem: restructuring of the system is the condition for the stabilization of the regime, and vice-versa…The interests of the proletariat, are quite the opposite. The proletariat aims at a critical seizure of the nexus between stabilization and restructuring, in order then to attack it.(Negri, 2005, p. 232)

So what I want to do here is fairly simple: I want to trace out what I think are some of the major barriers of capital accumulation in Australia in our present conjuncture and I will do so with a pretty broad brush – apologies to the details and the devils they may contain. I do so because I think these barriers are some of the deep fault-lines of class antagonism in Australia. This will be a summary of the research I have been doing over the first half of this year for the blog With Sober Senses.

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Podcast of ‘Australia: The Lucky Country? Capitalism and its Discontents’from the Brisbane Free University

In mid-December 2012 I spoke as part of a panel entitled ‘Australia: The Lucky Country? Capitalism and its Discontents’ along with Kristen Lyons as part of the Brisbane Free University. A  podcast can be found here. It was a great night and BFU is a wonderful initiative. Brisbane Free Uni

Welfare Changes and the Critique of Political Economy – Thoughts arising from, and a response to, ‘How the poor are shunted into deeper poverty just for political capital’ by John Passant.

They all turned their papers over and drew more squares. When Kollberg was ready, he looked at Martin Beck and said, ‘The trouble with you, Martin, is just that you’ve got the wrong job. At the wrong time. In the wrong part of the world. In the wrong system.’

                ‘Is that all?’

                ‘Roughly,’ said Kollberg. ‘My turn to start? Then I say X – X as in Marx.’

                                                                                     (Sjöwall and Wahlöö, 2007: 323-324)

 Principles and Particulars

There’s allus two sides to every question

and recognisin’ the principles be easy

whilst understandin’ particular particulars

and takin’ appropriate steps

calls for much collective wisdom.

(Sharp, 2010: 75)

Welfare in Australia has been going through substantial and profound changes. These changes have produced little if any public debate – until very recently when the changes to the provision of the single parent payment generated more than a ripple in the press and a flurry of noise from the commentariat. In this context John Passant, a prolific socialist blogger at En Passant and a member of Socialist Alternative, which is if not the largest socialist group in Australia then probably the one with the largest public profile, had a column published in The Age entitled How the poor are shunted into deeper poverty just for political capital. The publication of explicitly far-left views in a major newspaper is a rare thing indeed and unsurprisingly it circulated widely on Facebook. I am very critical of Socialist Alternative for both its formal politics and its mode of operation. However Passant writes in a fairly friendly manner and seems to be seriously attempting to express a critique of capitalism in a way that is accessible and connects with as many people as possible.  Now this seems sensible enough – as a real movement to transform society must be popular and thus those who hope to aide in its construction would require the ability to communicate the radical critique of that society as coherently and clearly as possible (and equally important, and most often forgotten, also require the ability to listen and to learn). But often such an approach becomes an excuse for poor politics and fairly shallow assumptions about the intellectual capacity of the audience and the processes of radical education: i.e. the assumption that the masses are just too dumb for the real thing and aren’t interested in anything challenging or difficult. The terrible state of  activist Marxism in Australia is in part due to this idea that Marx’s work is just too hard for people so we better give them something light and we can read Marx later….and this later never happens. Strangely this not reading of Marx leads to his deification. Rather than Capital and the Grundrisse being working books they become theological texts. Now let’s be clear, Marx is only important to the emancipatory project as his work pioneered the critique of capitalism, and it is this critique (whoever it comes from and under what ever name ) which can help us understand and change our society. The problem with Passant’s piece is that rather than understanding these changes as being in relation to the structural dynamics of capital accumulation he argues that they are due to bad ideas – something call ‘neoliberalism’. And behind this there seems to be a great confusion about what capitalism actually is and how it works and more importantly what the struggle to overcome it consists of.

Continue reading “Welfare Changes and the Critique of Political Economy – Thoughts arising from, and a response to, ‘How the poor are shunted into deeper poverty just for political capital’ by John Passant.”

Debt in the Banana Republic

( Originally published in, and wonderfully edited by, the good people at Mutiny)
Since their election Queensland’s LNP government has unleashed a wave of attacks on the conditions of workers and communities. These attacks include at least, the planned reduction of 20,000 public servant staff and the capping of wages, defunding of NGOs in the community sector, the intensification of the government’s power to ban strikes and restrict industrial action and notably homophobic policy that targets Queer organisations and has seen the watering down of civil unions and the removal of surrogacy rights for Queer parents (and unmarried heterosexual relationship shorter than two years). This constitutes a profound reorganisation of what we could call social reproduction.

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