Our two big problems

Stephen Williams,  12 May 2024

Tasmania’s problems, like the rest of Australia, fall into two broad categories. The first is the use of questionable economic theories. The second is the erosion of democracy.

The community independents movement – sometimes called Teals or Voices movement – is particularly strong on improving democracy but could be more sceptical of mainstream economics.

Questionable economic theories go beyond the Thatcherite neoliberalism from the 1980s to the present, with its privatisations, deregulation, user pays and low taxation for the rich. Many economists also question the more foundational elements that underpin it, found in the dominant economic textbooks.

The dominant economic paradigm has led to widespread and ongoing environmental destruction (including the climate emergency); unacceptable labour underutilisation; a housing crisis; a health crisis; unnecessarily high interest rates; a private-sector debt crisis; an energy crisis; and shocking wealth and income inequality.

There has long been a prima facie case for an official government inquiry into mainstream economics given the above outcomes and cogent challenges to the mainstream from highly qualified economists. These challenges need to be examined on a purely evidentiary basis.

If the challenges prove to be groundless we can move on to other causes for the current ‘polycrisis’. However, if they prove to be correct in whole or in part, we could start to arrest the existential dilemma that we are clearly in. Surely the precautionary principle should be invoked at such a critical juncture.

I appreciate that much of economics is values-based and philosophical, with no clear right or wrong – such as notions about who is deserving and who is not. But much of it is also subject to evidentiary analysis, including which schools of economic thought generally get their predictions right and which do not.

The current economic system clearly favours the rich and powerful, which is perhaps the main reason it continues in the face of obvious and grotesque failures, including the global financial crisis of 2007-09.

On balance, there seems to be much to gain and little to lose from a properly constituted inquiry where economic whistle-blowers like Prof Steve Keen, Prof William Mitchell, Prof Philip Lawn and Prof Steven Hail, just to name a few, could be heard.

Strengthening our democracy is a more straightforward affair as it is far less technical. Words like integrity, transparency, and accountability come to mind. In the words of some independent politicians, it means “doing politics differently”.

It includes things like strong and properly funded integrity commissions; truth in political advertising; political donations reform; lobbying reform (including publishing ministers’ diaries); how we fund election campaigns; freedom of information reform, whistle-blower reform; the right to peacefully protest; and enshrining human rights in legislation.

The federal crossbench in both houses have recently united (almost unanimously) to introduce new legislation along these lines, called the Fair and Transparent Elections Bill. According to federal member for Curtin, Kate Chaney, the Bill “aims to improve transparency, protect voters from outright lies, reduce financial influence, level the playing field, and limit excessive donations”.

All reasonable people should be able to get behind these kinds of changes, which raises the question of why the major political parties have left our democracy to wither on the vine for so long.

Citizens have been voting with their feet – to both avoid party membership and to vote for credible independents (and minor party candidates) when they emerge.

The recent Tasmanian election is a case in point with neither major party coming close to a majority. As a result there is a large crossbench of 11 and Jeremy Rockliff has signed agreements (not legally binding) with the three new Lambie members and two independents.

Taken together – both economic and democracy reform – is surely the path to a more sustainable society.

Voices of Franklin wants to be part of the solution.