Another Day in The Sun: The National Accounts, Growth and Malfunction

australia____land_of_tomorrow_poster
NAA: A434, 1949/3/21685

 

 

The work of the critique of political economy is a thankless task: especially when reality comes and fucks up your theorising. Over the last year on this blog I have been trying to address a number of interrelated phenomena: the end of the mining boom as a symptom of the global recession, rising state debt and the difficulties this presents to facilitating social reproduction and the failure of the Government to implement ‘Plan A’ – the stimulation of the economy via infrastructure spending financed by asset sales and cuts to services. Then the Australian Bureau of Statistics comes along and publishes the National Accounts which detail higher than predicted growth rates for the last quarter: 0.7% trend and 0.6% seasonally adjusted. Calendar year growth is then up to 3.0% rather than the forecasted 2.5% (Scutt 2016).

This would indicated healthy growth rather than malfunctioning – and this is despite the continual end of the mining boom which was the engine that drove capital accumulation in Australia for the last two decades. And GDP growth is, I would attest, a mystified indicator of profitability. If the economy is growing it is because firms are investing; and they are investing because of a sufficient level of profit today and expectations of them tomorrow. So much for declining profitability then, so much for over-accumulation too, so much for looming crisis…

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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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Notes for an understanding of class deals be they social democratic or otherwise


treaty of detriot

In a previous post I drew on the work of the Midnight Notes Collective (MNC) to describe social democracy as a class deal. I have also suggested that today capital offers (some? most?) workers in Australia a ‘high credit, high work, high consumption’ deal to, in some ways, compensate for the termination of social democracy, to reproduce the conditions of accumulation and to facilitate capital accumulation itself. I want to spend a few thousand words or so fleshing out the concept of the class deal as it seems crucial to grasp how capital rules in a specific moment and thus help those who want to subvert it. Also there is another political aim here, to better understand what social democracy was and what it means to exist in its wake. A confusion about this question is one of the many rocks on which the Australian Left-as-it-is is shipwrecked.[i] Most often the history of the last 40 years is reduced to a history of ideas: there once was a thing called ‘social democracy’ as a set of ideas, there is now a thing call ‘neo-liberalism’ and it has captured the organisations of the traditional labour movement (the unions and the ALP, especially the left of the party). A general response to the latest capitalist offensive is often an argument for a return to a romanticised idea of social democracy. This fails to account for the ways that this is both undesirable and impossible – the ground has shifted. To investigate the question of a class deal means accounting for class composition today – both subjective and objective.

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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

A New Start? Welfare Changes And the Labour-Power Shortage

As some readers might be aware on 1st of January substantial changes to the single parent payment took place. The main change is that when their children turn eight parents receiving the single parent payment will be shifted to Newstart (the standard form of welfare for those considered unemployed) – this will mean both a $110 a week reduction in their payment and that they will be subject to the usual pressures, routines and requirements of jobseekers (dole diaries, endless appointments with job agencies and all that).[i] These changes are just part of a broader transformation of how welfare works in Australia; changes that include the expansion of welfare quarantining, increased disciplinary processes applied to the unemployed and increased requirements for those on other forms of welfare, such as parenting or disability payments, to enter into the job market. There has been some considerable media attention after Families Minister Jenny Macklin answered a question saying that that she could live on the $35 a day Newstart provides and then later the transcription of this press conference changed her answer to ‘inaudible’.[ii]

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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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