It’s Time For Disaster Socialism
“NEVER LET A CRISIS go to waste.” That was the key take-out from Naomi Klein’s 2007 book, The Shock Doctrine: The Rise of Disaster Capitalism. Remember the stories? Who could forget the one about the way the American Right took advantage of Hurricane Katrina? How it looked upon the tragedy of New Orleans’ flooded public schools, and saw only a heaven-sent opportunity to privatise the city’s education system.
I know Jacinda wants us all to “Unite Against Covid-19”, but I also know that out there the One Percent are working feverishly to protect, defend and if possible extend their gains of the past 35 years. The neoliberal elites survived the Global Financial Crisis of 2008-09, and they are absolutely determined to survive the Global Pandemic of 2020. That cannot be allowed to happen. The Left must drive the stake so deep into Neoliberalism’s black heart that, this time, it does not get up. What’s needed now is “Disaster Socialism”.
Last December, contemplating the rout of Jeremy Corbyn’s Labour Party, I observed:
A democratic-socialist leader possessed of a sophisticated strategic sense would understand that election manifestos are best restricted to promoting policies that the electorate actually wants – not policies his (or her) comrades believe the electorate should want. Let the drift of events – economically and socially – propel the party in directions which the capitalists may not like, but which they no longer feel able to redirect. Most importantly, identify the one reform most likely to undermine the institutions upon which their opponents’ rely most heavily for protection. Implement it early, fast, and without compromise.
In the context of the current crisis, the “drift of events” is pushing the Coalition Government inexorably towards introducing some form of Universal Basic Income (UBI). Finance Minister Grant Robertson has (very wisely) refused to rule out such a measure. Indeed, it is difficult to see how preventing a precipitous descent into mass poverty and significant social dislocation can be avoided without some form of UBI.
If Jacinda and her colleagues wish to avoid New Zealand spiralling down into the sort of mass civil unrest that characterised 1932 – the darkest year of the Great Depression – when angry crowds of desperate unemployed smashed-up Auckland’s Queens Street and fought running battles with the Police, then constructing some form of income floor for the population to stand on is pretty much unavoidable.
The beauty of the rising clamour for a UBI is that it is not actually coming from the Government. Rather, it is bubbling-up (as all great social reforms should) from below, as thoughtful people look ahead and see the black hole into which New Zealand’s economy will disappear if some form of income guarantee is not introduced – and quickly.
(Which is not to say that Robertson will not be finding it difficult to suppress a wry chuckle. Remembering the derisive reception the UBI option received when it emerged from Labour’s 2016 “Future of Work” discussions, he will no doubt be thinking “what goes around, comes around”!)
Even more beautiful than the genuinely popular nature of the demand for a UBI, is the fact that the voices of the capitalists themselves – especially the smaller ones – are joining in the clamour for change. They know that the thing they have to fear the most is (as Franklin Roosevelt rightly observed in March 1933) “fear itself”.
When people lose all confidence in their ability to escape the economic calamity assailing them, their whole mind and body are attuned to only one thing – survival. Their own and their family’s future fades to black. “Sufficient unto the day is the evil thereof.” In times like these the most important thing a government can do is give people hope. And, in the midst of an economic catastrophe: hope = money. If the people have no hope – no money – they cannot and will not spend. Every capitalist with a brain knows this. They know that impoverished consumers must put at risk the entire capitalist system. That’s why they, too, however reluctantly, are coming to the conclusion that the introduction of some sort of UBI is inevitable.
Ironically, this leaves Neoliberal Capitalism’s official spokesperson, Simon Bridges, off-side with a growing number of capitalists. His objection to the introduction of a UBI is that once introduced it will instantly become a permanent fixture of the twenty-first century welfare state. Abolishing it will be politically impossible. He’s right, of course. A UBI, like Mickey Savage’s “social security”, is one of those reforms which the Right must, at almost any cost, prevent, because once it’s in, it’s in for good. National’s wartime leader, Sid Holland, came to this realisation only slowly. He had to be beaten three times at the ballot box before he was ready to reassure the electorate that Social Security would be safe under National. Clearly, Bridges knows enough of his own party’s history to grasp the importance of heading a UBI off at the pass.
And, when I use the expression “at almost any cost”, I’m not exaggerating. So appalled was the New Zealand Right at the prospect of Social Security coming into force that, on 2 February 1939, one of their number poured petrol over the timbers of the half-constructed Social Security Building in Aitken Street, not far from Parliament Buildings, and set them alight. The resulting blaze lit up Wellington’s night sky and reduced the construction site to ashes. Not that Mickey Savage and the people who had just re-elected the Labour Government were deflected by the arson in Aitken Street. The Government, private builders and the construction unions, working together, took only weeks to construct a new Social Security headquarters. It was opened by the Prime Minister on 27 March – just five days from the coming into force of the Social Security Act on 1 April 1939.
Similar determination is now required of Jacinda and her government. The present crisis demands a bold measure to both reassure and economically support an anxious nation. She has the power to meet the people’s need – and she must use it. If calling the reform UBI is a problem, then for God’s sake call it something else! But get it in place, Jacinda. Let Bridges and all the other neoliberal ideologues howl. After all, how much attention did they pay to the howls of protest that greeted Rogernomics and Ruthanasia? What goes around, comes around.
And when the Covid-19 Pandemic passes and we all emerge into the sunlight, the emergency measures will need to be given permanent legislative form. To accommodate this reform many other things will have change – not least our taxation system. A UBI will require the One Percent to pay their fair share. Something they haven’t done since the early 1980s. Employers will also face changes. No longer in fear of “the sack”, their employees will demand a fairer distribution of the surplus they create: more for the workers, less for the shareholders. The UBI will thus unleash a torrent of innovation and creativity – helping as nothing else can the rehabilitation of New Zealand’s stricken economy.
The disaster of the Great Depression was transformed into a new and fairer society by the democratic socialism of the First Labour Government. The disaster of the Covid-19 Pandemic offers a similar transformative possibility to the Labour-NZ First-Green Government. Seize the time, Jacinda! You will never have a better opportunity to be strong, to be kind, and to make it okay for those who have waited so long and endured so much.
Let’s do this! Now!
Yes–call it something else if necessary–but a universal income is needed right now, as a combo sooner rather than later, with free Wifi, fare free public transport and power generation and supply returned to full public ownership and control.
In the short term we are two weeks away at best from looting, a crime wave, and widespread breaking of the lockdown. Modern consumers operate on a “just in time” basis like employers do. Shops always open, preserving food and planning ahead a long lost art for many. People surviving week to week are stuffed in a situation like this–a low wage economy and low union density has ensured that.
I am close to a number of union organisers and know the specific questions they have been facing from workers the last two days, and it is not a pretty sight. Some employers, but not many, are doing “the right thing” and paying people for now, and then take leave, but many are dragging their heels, essentially cutting people adrift. There are two tiers of Govt assistance following the Ministry of Health dictate for nationwide isolation. This has confused some, but never mind, UBI now is the obvious way out of social chaos in the short term. In the longer term I agree with Mr Trotter that UBI would be a conduit for political struggle to roll back neo liberalism.
What the hell is truly going on? U.K. Advisory Committee on Dangerous Pathogens is of the opinion that this “virus” should no longer be considered as a high consequence infectious disease.
So why are we effectively under house arrest and why have thousands lost their jobs?
https://www.youtube.com/watch?v=JXBYrD1LpbQ&feature=em-uploademail
Denmark smells and fish seem appropriate.
It’s the case with all right wing governments globally that there ideology of personal responsibility and adapting ones life style to the changing economic system dogma is found wanting. Scott Morrisions Australian Federal Government blew sixty six billion dollars 2 weeks ago on his ideologically driven corona recovery package and virus numbers blew right past Scomo’s recovery efforts. Now is not the time for petty politics. The only leadership that can be tolerated is competence.
Helena Jordan: ” U.K. Advisory Committee on Dangerous Pathogens is of the opinion that this “virus” should no longer be considered as a high consequence infectious disease.”
I hadn’t seen that YouTube clip, but I’ve certainly seen the above information elsewhere online, with a link to that UK government website.
It’s a puzzle indeed as to what’s going on, both there and here.
I’m in Wellington. I have heard public health talking heads claim that there is community transmission here in NZ; an acquaintance mentioned this, along with their belief that it’s happening in this area. I pointed out that there are no reports of confirmed community transmission: if there were, we’d have heard about it already.
And if there are undiagnosed people in Wellington, it’s obvious that they aren’t getting sick (or not sick enough to need medical attention). Were that otherwise, we’d surely know about it already. Nobody could accuse the government of keeping quiet about the cases!
Moreover, this is a small society: if there were community transmission, that information would have leaked out already.
Haven’t heard a sound bite from David Seymore, what’s he saying about all this?
D’Esterre – They can be sick but not get attention as systems are overloaded. Unless you can name the source of you possible infection you will not get tested.
So much for community contagion being tracked at this very important stage.
I rang the hotline on behalf of an exhausted sick young man who could not get access to testing, and found the same response.
Yes……The revolution cometh…………VERITAS ODIT MORAS….”truth hates delay”
… ” Let Bridges and all the other neoliberal ideologues howl. After all, how much attention did they pay to the howls of protest that greeted Rogernomics and Ruthanasia? What goes around, comes around ” ….
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Too bloody right !!!
Excellent article, Mr Trotter.
And renationalise all our vital infrastructure so it meets the needs of the nz people, not just a bunch of investors.
So we’re all in this together, according to Ms. Adern. Perhaps, if she could travel through time, (and some people seem to think she is capable of miracles), she would say the same thing to those aboard the Titanic as it approached its iceberg. Well, 60 percent of the first class passengers (including 97 percent of the women travelling first class) survived the wreck, compared to 25 percent of the third class or steerage passengers. Disasters always expose the inequalities and injustices of class-divided society, as has the Covid-19 crisis, in New Zealand and internationally.
And why do Chris Trotter and others persist in identifying “neo-liberalism” as the evil to be destroyed? There’s no such thing – it’s just capitalism. And if you don’t drive a stake into its heart to finish it off, to use Mr. Trotter’s vampire analogy, it will eventually reconstitute itself and come at you again. That’s a lesson social democrat heroes like Mickey Savage and Jeremy Corbyn were incapable of learning.
”Social democrat heroes like Mickey Savage and Jeremy Corbyn” were well aware of the need for a MIXED economy.
Not one of pure capitalistic greed, nor one of Bolshevik Communism.
What we seek is an economy much like the sensible Scandinavians…a MIXED economy. Our Australian born Mickey Joseph Savage was one who emulated that same sensibility as modern Scandinavian country’s,…and it is a pity, we do not follow that model.
The structure of corporates controlling business and politics needs to change before we have a democracy.
Where are our unions, workers cooperatives and broad based representative decision makers to counter corporate power of Business NZ.
All for a UBI for NZ citizens only. We all have seen how many people queue up for handouts who don’t appear to need them https://www.rnz.co.nz/news/national/391713/kiwibuild-pre-approved-applicants-list-raises-eligibility-questions apparently 10% of NZ arrivals for the last 15 years get permanent residency without any income. Tarrant who blew away 50 people in cold blood was one of them, and I don’t fancy encouraging more of the world here to be provided for, even as they train for 3 years to kill others… Likewise the Meth smugglers who got permanent residency in NZ while never producing a NZ tax return https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11842563… Too many people flocking to NZ to commit social harm on other’s in NZ and the government does nothing. Needs to stop.
Who allowed them in. We have more than enough people and the environment is further suffering.
@ John W, Incompetence, ideology, right wing and woke policy, user pays policy, allowed them in.
Also inability to change our immigration policy to dampen demand with globalism and cheap travel becoming available to the masses.
Inability to look at Australia and China and mimic the same visa conditions to their nationals as to ours.
Aka Australia has changed their criteria for Kiwis living in OZ when the immigration surge happened, so other Nationals living in OZ can’t vote and use the health system without certain conditions, but NZ just waves more Tarrents and criminals into NZ to fulfil their ideological whims here, and take up housing and resources.
Likewise Kiwis can’t reside in China and get free medical, super and vote there but many Chinese (dual) nationals can here. Kiwi’s can’t buy a house over there and (not sure) but I don’t even think Kiwi’s can operate a Chinese business without a Chinese partner taking a 50% cut.
We need reciprocal social welfare conditions for immigration to start operating ASAP!
“Incompetence, ideology, right wing”
johnkey and banksters international plus locally Business NZ plugging for more consumers and stuff the country.
Capitalism has failed us all finally so it seems that a new policy incuding the best of Capitalism and socialism is the clear way forward not to have balance to include all who inhabit our future ecomnomic policy my dear friends. Great article from Chris Trotter.
It IS a great article from Chris Trotter,…and despite my disagreement regarding Roosevelt and the Democratic party ( who supported slavery in the South ) , and ‘Honest Abe’ of the Republican party who opposed it during the American Civil War….I’m still a big Chris Trotter fan.
I just think he has a few historical facts wrong . 🙂
God bless you, Chris.
Love ya.
Your wonderful.
Methinks we are best off to have a mixed economy as the Scandinavians have. I have always said this, I will never change…I know it is best for all,… for the rugged individualists, to the homely more conservative types keeping home and hearth together. And for all the less well off in society in which with a turn of the dial we could all easily become.
Here ya go , Chris,…
I can tell your an old rocker… just like Martyn is.
I Don’t Wanna Stop
https://youtu.be/2nX6qGeyaGM?t=14
Dassle 72.
I watched Jecinda on telly address the Nation for Lock down. She said. Act
Like you have it. Fuck I nearly shocked drinking my beer. She has put
Death wish on us. She is The Angel of Death. She backs Abortion Euthanasia. Murder. She is not what she seems.
Keep your hair on Darrel. A lot of people are putting others at risk because of ‘but I don’t have it so it’s fine’ attitudes. All Jacinda was saying is that we need to take the same precautions we would if we did have it. If everyone does that, there will be a whole lot less community spread, and we can all get back to normal within a couple of months, as they are in parts of China.
Latest news from the Chinese city where I live is that public transport is now operating as normal, with a full schedule of subway trains, and no compulsory temperature checks for commuters. Meanwhile, as countries close their borders to transit passengers and flights get insanely expensive, I’m wondering when I’m going to be able to return.
She backs freedom of choice, do you want a right wing dictatorship, because that’s what you’ll get.
Just gotta love the fact NZ and Oz govts are “negotiating” with the banks for a mortgage holiday…. of course you can have one sir, but the interest will keep accruing! So NZ has effectively shut down yet the banks that are given the approval by our govt to operate (and suck significant loads of folders from thee shores) end up calling the shots. Yet these funds are loaned into existence by the banks, so they create the money for your mortgage out of thin air then charge you interest for it…….this peeps is govt sanctioned theft. Who is in control, us thru our govt or the banks?? The answer shows where the problems begin. While we continue to believe in a human created system (neoliberal econimics and all the fractional reserve and usury etc it includes) that must have continuous growth on a finite planet, the outcome will allways be the same… collapse.
There is a significant chance that those in charge (as you can see not your govt) will utilise this crisis as a perfect foil for a global monetary reset with them still at the top of the heap…. the question is of course was it intentional or an accident???
And unfortunately labour/national leftwing/rightwing are all part of the same bird, try and find find any politician who questions the basic tenets of Neoliberal economics (MMT or whatever it is disguised as today). And unfortunately most of us sheeple are toooo darn busy surviving to even think about it.
For an alternative view on covid-19 have a view of this
https://www.unz.com/article/last-man-standing/
read the comments as well, interesting times indeed
Peace
Does not look like we are going towards disaster socialism, but shock doctrine, disaster capitalism or Chinese/Russian totalitarianism in NZ. Our justice system seems to have stopped being fair.
The good news for the woke, is that we are not racist!!! We have billionaires from around the globe, all different ethnicities who are now NZ citizens and residents to do with NZ what they will. What upstanding new citizens/residents are they! Sarcasm.
Russian billionaire Mikhail Khimich’s drink-driving charges dismissed
https://www.stuff.co.nz/national/crime/120396897/russian-billionaire-mikhail-khimichs-drinkdriving-charges-dismissed?fbclid=IwAR3iWIfC3Obp5nTBB5vKqD_0Lc0owr6zs4DQID_4pPAqv0oE7qN6G1G_qv8
The troubled redevelopment of the Waiwera Hot Pools complex by Russian billionaire Mikhail Khimich has ended in liquidation
https://www.interest.co.nz/property/98194/troubled-redevelopment-waiwera-hot-pools-complex-russian-billionaire-mikhail-khimich
Donald Trump, Peter Thiel and the death of democracy
https://www.theguardian.com/technology/2016/jul/21/peter-thiel-republican-convention-speech
Mainzeal’s Yan says NZ laws don’t apply in China, won’t pay back $18m
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12271022
Controversial citizen William Yan AKA Bill Liu admits money laundering of ‘significant sums’
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11835412
Their billionaire business sense seems to be generating social harm to other individuals and small businesses in NZ, major NZ firms liquidations like Mainzeal left their subcontractors in the lurch and bankruptcies after years of local ownership at Waiwera effected the town greatly.
But it seems billionaires are exempt from paying back fines or even appearing in NZ courts like local citizens are expected to do.
If ever you were looking for confirmation the forces of Neoliberalism were prepating to defend their patch, Mathew Hooten’s column on today’s Herald says it all ….
“One thing is clear. Free-market capitalism is unsurpassed at inventing, creating and producing houses, cars, iPhones, cool sneakers and jeans. We need to get back to it as soon as we can “