Last year the world witnessed the eruption of the Occupy Wall Street movement in the US, which was in turn inspired by the breathtaking events of the Arab Spring. The Occupy concept was embraced by the disaffected citizens of Europe, who protested in the streets against the unfettered power of the financial system and the way in which, fuelled by greed and deregulation, it had plunged the world into economic chaos. Closer to home we saw Occupy Melbourne attempt to find a voice (and a space to protest) but ultimately floundering and voting itself into irrelevance with its wishy-washy statement of demands.
Occupy was never going to take off in Australia as it did in the US because the middle class is much less under threat here, our media is dominated by corporate interests, and most mainstream Australians are apathetic and not politically engaged. This is despite the fact that the GFC caused significant hardship in Australia to a degree often minimised by the mainstream media, and that entrenched disadvantage – fuelled by government failure to maintain critical infrastructure, services and welfare payments for the unemployed – is rife.
Yet warning signs that Australia is not (if it ever was) the land of the fair go are everywhere. Research tells us that wealth inequality is on the increase. In recent years profits as a percentage of GDP have been at their highest since 1959-60, while the wage share of GDP has been trending down and is more than 9 per cent lower than in the mid-seventies. The airwaves of the once-fearless ABC are choked up with conservative voices calling for ‘strong surpluses’, more privatisation, smaller government and lowered wages. We have a two-tiered education system with funding having increased to non-government wealthy schools at the expense of struggling government schools. The linking of Gillard’s ambition with mining company lobbying power to unseat Kevin Rudd alerted Australians to corporate influence over the very make-up of government.
Our health system entrenches disadvantage and creates rorts; those without private insurance wait for years for hip replacement operations, disadvantaged people face social exclusion because of the lack of free dental care, and high income earners are pressured to buy private health insurance that doesn’t cover the exorbitant fees of greedy specialists. The discourse of welfare by even the ALP has changed markedly in recent years, devolving into an unsettling dog whistling by Gillard (and Abbott) with dole payments now hardly enough to cover rent and falling ever-further behind the pension in value. A chorus of corporate and even financial industry identities is currently complaining loudly to a complacent media about the strictures caused by business-stifling penalty rates earned by low-paid retail and hospitality staff. Neoliberal ideas have created social chaos and widespread suffering in the US, and they will do so here if allowed to dominate.
The Australian Occupy movement has to tailor its message to this environment. It has to understand and communicate that things will get worse if we don’t act. It has to make very specific demands about changing the conditions that are allowing corporate power and wealth inequality to increase. It needs to monitor and publicise the trends in the balance of power between corporations and people.
Deregulation of financial bodies simply means rule by the psychopathic, who will continue to accumulate money and assets at the expense of the majority, and the sycophantic parliamentarians and journalists who benefit from representing their interests: this is a simple truth of human nature and the realities of living in large and complex societies. The Occupy movement here needs to warn Australians that multinationals don’t care about the suffering and poverty their actions can unleash, and they don’t give a flying if the middle class disappears altogether as it’s rapidly doing in the US.
Here’s a wish list of specific demands that I would love to see the Occupy Melbourne movement present to the federal government, and agitate for in a range of ways:
Stop the stealthy corporate takeover of Australian politics. Corporations should no longer be able to fund political parties. Instead parties should receive funds from the public purse depending on the number of members they have. It is a furphy to argue that taxpayers should not fund political parties. Through pricing of goods and commodities, consumers already pay for this kind of company expense, just as they indirectly pay for advertising.
Legislate to reduce and control executive pay. The wrongs and dangers of uncontrolled executive pay are too many to go into here. What is most disturbing is the self-perpetuating nature of a culture in which corporate heavyweights increasingly award ridiculous rates to each other through company boards. The government needs to enact strong legislation to reduce and control executive pay rather than relying on shareholders to do their work for them.
In the UK, a non-government High Pay Commission has been formed. It argues that unbridled executive pay is damaging the UK economy and calls for reform of the tax system to end this rorting.
Drastically limit corporate lobbying. While Kevin Rudd introduced legislative reform to lobbying practices, there were many loopholes, including the ability to use in-house lobbyists rather than discrete lobbying firms. Lobbying by corporations, and paying for access to politicians, is essentially undemocratic because it erodes the principle of ‘one vote one value’ and is simply another way that corporations misuse their financial resources to wield power.
Change the structure of the corporation. Corporations should no longer have the status of ‘persons’. It’s an accident that they ever did. There should be a legal requirement that they take the wellbeing of the community, their workers and the environment into account in all activities, and this requirement should take precedence over the legal requirement that they make profits for shareholders.
Change the rules so that individual superannuants control the way their institutions vote at the AGMs of the companies in which they invest. At the moment outrageous salary rorts and megalomanic CEOs remain in place partly because these institutional shareholders are part of the cosy corporate culture, and they vote for remuneration packages at AGMs.
Change the voting system so that smaller parties have power commensurate with their popularity. The New Zealand system, the Mixed Member Proportional (MMP) voting system, looks pretty good to me.
Make the halting and reversing of wealth inequality a government priority. Figures released by the ABS in 2011 show that in 2009-10, the wealthiest 20 per cent of households in Australia owned 62 per cent of the total net wealth of all households, up from 59 per cent in 2003-04; the poorest quintile owned less than 1 per cent. A 2011 study commissioned by the ACTU found that Australia is much more unequal than people believe it to be, and that Australians are strongly in favour of a more equal distribution of wealth. Meanwhile, acclaimed UK research has revealed that the greater a country’s wealth inequality the more misery all of its citizens experience, not just the poor ones.
Wealth accumulates over a lifetime, and according to Mike Stektee, writing in the Australian, we need to tax it more highly if we are to reduce growing wealth inequality.
This includes stopping negative gearing for existing housing, ending superannuation concessions for the wealthy, and taxing capital gains more heavily. Reducing wealth and income inequality must be government priorities and the impact on wealth and income inequality must be one of the criteria for judging every policy decision.
Change the laws to break up media monopolies. At present Rupert Murdoch’s News owns 70 per cent of the capital city press and has substantial holdings online. Murdoch is known for using his media assets to pursue his corporate agenda, but regardless of modus operandi and political affiliations, a functional democracy is simply not possible with one company dominating one form of media.
Enforce the ABC charter and reinstate editorial policies and practices that enshrine impartiality and news values. In the last decade or so the ABC has lost its nerve. It now acts as a PR arm of parliament, perpetuating the vacuous ‘she said, he said’ style of journalism, and puts so-called balance before news values and true impartiality. True impartiality involves knowing you will never get the absolute truth but trying anyway, consulting the most highly qualified and objective sources in the attempt. Instead the ABC sees itself as airing a range of views, regardless of their reliability, and quoting people not for the strength of their viewpoint but for their so-called prominence. At the same time it takes the neoliberal consensus as a given and is far too reliant on the discredited, agenda-driven Murdoch press as a source of spokespeople, news stories and angles. In practice this results in an unbalanced airing of extreme right-wing views, with business groups and corporate-funded right-wing think-tanks such as the IPA getting much more of an airing than do extreme left views. This also creates poor news values; eg, opposition comments regularly heading radio news bulletins regardless of the newsworthiness of the comments, a business leader calling for deregulation and lower wages being allowed to bang on without being challenged or having to provide supporting evidence.
Drastically increase funding to public education. A meritocracy and an informed citizenry start with an excellent education system. Australia should immediately adopt a model based on Finland’s system. As this blogger states, ‘Finland improved its public education system not by privatizing its schools or constantly testing its students, but by strengthening the education profession and investing in teacher preparation and support.’ This includes universal free education to a very high standard. Teachers have greater standing in the community because they are highly qualified (a Masters degree is the minimum) and carefully selected. Funding to private schools needs to be drastically reduced if not abolished.
Review all trade agreements and revoke any terms that do not advance Australia’s interests and undermine democratic control of domestic policy. The 2004 Australia–United States Free Trade Agreement was heavily skewed in favour of the US. According to commentator Kenneth Davidson, such agreements give US corporations the chance to push for the weakening and dismantling of regulations and regulating bodies they don’t like: ‘the Pharmaceutical Benefits Scheme, local-content rules for the media, labelling of GE food, regulation of foreign investment and government purchasing policies that support local employment’. While John Howard trumpeted the supposed benefits of this agreement, the trade outcomes for Australia of the agreement were ultimately negative. The agreement included, among other things, extensive clauses relating to the operation of the Pharmaceutical Benefits Scheme, (PBS), as well as greater protection for the owners of drug patents.
The Trans-Pacific Partnership Agreement (TPPA), is designed to replace a number of individual bilateral agreements with an agreement that includes Australia, the US, NZ, Chile, Singapore, Brunei, Peru and Vietnam. While it is yet to be finalised, some provisions proposed by the US relating to the enforcement of patents and copyrights have aroused substantial controversy for their ability to undermine domestic laws.
Review all trade agreements and revoke any terms that do not advance Australia’s interests and undermine democratic control of domestic policy. The 2004 Australia–United States Free Trade Agreement was heavily skewed in favour of the US. According to commentator Kenneth Davidson, such agreements give US corporations the chance to push for the weakening and dismantling of regulations and regulating bodies they don’t like: ‘the Pharmaceutical Benefits Scheme, local-content rules for the media, labelling of GE food, regulation of foreign investment and government purchasing policies that support local employment’. While John Howard trumpeted the supposed benefits of this agreement, the trade outcomes for Australia of the agreement were ultimately negative. The agreement included, among other things, extensive clauses relating to the operation of the Pharmaceutical Benefits Scheme, (PBS), as well as greater protection for the owners of drug patents.
The Trans-Pacific Partnership Agreement (TPPA), is designed to replace a number of individual bilateral agreements with an agreement that includes Australia, the US, NZ, Chile, Singapore, Brunei, Peru and Vietnam. While it is yet to be finalised, some provisions proposed by the US relating to the enforcement of patents and copyrights have aroused substantial controversy for their ability to undermine domestic laws.


