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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Is that it for the Plan A for Capital?

It’s now pretty clear the Campbell Newman’s LNP  has lost the Queensland election due to opposition to the ‘leasing’ (the effective sale) of state assets to raise funds to pay down debt and stimulate accumulation through investment in infrastructure. These two things are key parts of what I have argued is the Plan A to ensure the accumulation of capital in Australia as the mining boom fizzles out.
How many other state governments will proceed with asset sales now? And the Federal legislation to encourage this asset recycle remains stalled and unable to pass the senate.
How then can the investment in infrastructure be financed? And what are any of the alternatives for capitalism in Australia?
Whilst elections have little to do with our struggle for emancipation this result makes it clear that the current malaise of bourgeoisie politics and the general soft refusal of large sections of the population to sacrifice for capital means the state seems unable to act effectively  for the best interest of capital – and all this in the context of a bleak global economy.
As the end of the mining boom begins to bite will this layer of refusal hold? Can vast expenditure on infrastructure be financed any other way? What could possibly be a Plan B for capital? And what shape will our struggles take in this period of crisis, decline and malaise?

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]

Continue reading “A New Start? Welfare Changes And the Labour-Power Shortage”

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