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


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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Australia you’re standing in it part 1: the pulse rate of accumulation


Something is going on. Something is changing. There is a shift in the trajectory that capitalism in Australia is taking. At the recent National Reform Summit Martin Parkinson, a former head of Treasury remarked that ‘Unless we actually grab this challenge by the horns and really get concrete about what are the priority issues, we are actually going to find ourselves sleepwalking into a real mess’(Martin 2015). The metaphor of Australia sleepwalking towards recession is now resonating in the echo chamber of the political class and sums up their dual concerns: on the one hand a decline in the accumulation of capital; and on the other that the political apparatus and the broader society seems unable to do anything to change course, perhaps is even aware, and is moving without, or despite of, conscious control. Australia is slouching towards, or is already sunk in, political and economic malfunction.


Whilst the political class wants to address these dilemmas and act to save capitalism from itself we want to understand what is going on so we can overcome it all. Here I want to grasp the current conjuncture of capitalist society in Australia: in particular the current malaise of capital accumulation and the malfunctioning of official politics. What do these phenomena tell us about the current moment in Australian capitalism and the possibilities, overt or covert, for a radically different kind of society?


This is part one of a six party study to try to sketch an outline of the current conjuncture of capitalism in Australia. Part two will focus on debt, part three the crisis of mainstream politics, part four on the end of the ‘high credit, high work, high consumption deal’, part five on gender and social reproduction and part six on the most prominent fault lines of struggle. But here we will start by posing a hypothesis about capital accumulation in Australia and also try to take its pulse-rate.

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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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