Class-war and the Rudd Labor Government

It’s been quite a while since we last heard the term “class-war” bandied about by political commentators in relation to Australian Federal politics. It’s a lazy, archaic term; a term probably last reasonably applied amongst the Left in relation to the unabashedly pro-business policy-making of the Reagan/Thatcher era, and amongst the Right around the same period, when centre-left parties around the world were still a pragmatic streak or two short of the “Third Way”. In cases where “class-war” is dragged like the decaying corpse of a phrase it is into mainstream political debate today, it is most often done by folks who are prone to slander and not particularly interested in balanced analysis. It’s a term that means next to nothing to most ordinary Australians, and only really serves as a “nudge-nudge, wink-wink” to fellow one-eyed travellers and an admission of ideological conceit.

Interestingly, just in the last few months (and particularly amongst the News Limited stables), the term has started popping up around the traps in commentary on the Rudd Government. Andrew Bolt picked up the cudgel a couple of months ago in relation to the government’s comments on executive pay, and David Penberthy from The Punch described the government’s budget just last week as a “class-war budget” – whatever that means. I suspect David Penberthy wouldn’t know what a “class-war budget” looked like even if the Russians managed to reanimate Lenin and parachute him into the next preselection contest in Wayne Swan’s electorate. A number of commentators including Paul Williams from the Courier Mail and Peter van Onselen from The Australian have another angle – denouncing the government’s proposed Resource Super Profits Tax (RSPT) as an act of “class-war” in their recent contributions.

But what is a “class-war” policy? A “class-war” policy, I think, can be reasonably defined as a policy that has been construed to explicitly favour the poor at the unjust expense of the rich, or to explicitly favour the rich at the unjust expense of the poor. Now frankly, I don’t think there would be many people out there who really believe that the Rudd Government has tended to explicitly favour the poor at the unjust expense of the rich during its last two and a half years in office. Comparing Rudd Labor’s record with that of the previous Howard Government, for example, it would be a rather difficult task to successfully argue that the Prime Minister has been more of a socialist than economic conservative – unless you happen to believe that John Howard was a socialist too.

Take the example of the RSPT, which Wayne Swan does a splendid job of justifying here (hat tip: Peter Martin). This is a measure that seeks to obtain for the people of Australia (both rich and poor) an increased, “fairer” proportion of the profit share from the fabulously successful mining sector. Given that we are talking about companies that earn their stratospheric profits by digging resources up out of territory that is owned by all Australians, and the nation itself is in the process of digging its finances out of a hole bored by the GFC, I really don’t see how this policy can be reasonably construed as a “class-war” policy. This is a specialised measure targeting a specialised industry announced in trying times, not a measure targeting a certain “class” of people or organisations or that benefits the poor at the expense of the rich.

In any case, if the RSPT really is a brutal act of “class-war”, it is surely the first such act where one of the most prominent victims has seen fit to declare both his support for (2 months ago) and his opposition to (today) his attackers.

The Clive Palmer vs. Clive Palmer “class-war”. Now that is a John Woo film begging to be made.

ELSEWHERE: Mark from Larvatus Prodeo is equally bemused by all this “class-war” claptrap.

2 thoughts on “Class-war and the Rudd Labor Government

  1. Look, they are always babbling on about the need for a level playing field as a prerequisite for successful liberalism, but they can never see that a level playing field requires precisly that, a certain levelling, to ensure the actual goal, equality of opportunity, is arrived at.
    it is fine for the wealthy to skin a place like Greece, ruining the chances forfulfillment of millions of ordinary people, but let educated observers suggest more efficient flows of economic stimulus, let alone an actual redistribution of scarce resources to enable the eventuation of a level playing field and we get babble about class warfare.
    Can’t have the hungry eating when this disturbs the sensitivities of some crayfish scoffing exectutive, “robbed” by the wicked socialist tax man to help pay forhospitals etc to ensure others get the same chance as him…dear me, what’s the world coming to!?

  2. Paul, I think that in this modern era of ‘making the pie bigger’, there is only a certain extent to which direct redistribution is going to be sellable. Where government policy is rewarding the wealthy for no or little good reason, the funding should certainly be redirected to areas of actual need. On the other hand, where policy is acting as an incentive to the wealthy to do more for society or to encourage growth, there’s probably a case for the status quo.

    It’s a balancing act – but I agree its a balancing act that surely must be skewed towards lifting up those on lower incomes rather than multiplying the position of those on higher incomes.

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