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”

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


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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.

Continue reading “Notes for an understanding of class deals be they social democratic or otherwise”

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