Everyone knows there is a recession and this recession has been brewing for a long time. At first Kevin Rudd was a bit blase. He believed that Australia would weather the storm with only minor damage. Then it was predicted that an extra one fifty thousand would join the dole queue. Later it was estimated that the percentage of the workforce unemployed would reach seven percent! Now it is acknowledged that even this is a serious understatement and the real figure will be much greater. As many as a million people will be forced to live below the poverty line. Many will lose their homes.
Rudd’s basis for optimism was as follows: Australia has a more regulated banking regime and that the economy was based on export of mining raw materials to the less affected Peoples Republic of China. It’s true that Australia is doing better than other countries but this is relative. People are suffering. Rudd got it wrong. Australian mineral exports to China have suffered because China’s exports of manufactured goods made from those minerals have declined rapidly. Chinese workers have suffered from serious unemployment also. So there is a reduced demand for Australian imported minerals. Australian mining workers have been laid off.
This recession has exacerbated the process of restructuring. It has been suggested that companies such as Pacific Brands have used the recession to do what they wanted to do anyway—lay off workers. Australian manufacturing has always been weak, undercapitalized, poorly equipped and suffering from a poor local market. For decades, since the post war boom of the sixties, manufacturing firms have folded and many more want to fold and move overseas. The recession gives them a smokescreen.
Rudd’s way of dealing with this is to give out money. He believes that if money is give to the right hands, people will spend and this will bring back confidence. The retail sector claims increased spending has helped their industry and saved some jobs. This gain is minimal. Maybe it has stemmed the tide a little, saving a few jobs for a while. But Rudd’s spend big has not been any solution. The flood of unemployment is continuing and is expected to intensify. Working people should not be concerned about the welfare of the government or the bosses. Unless we put our interests first we will be forced to live below the poverty line.
Every sacking must be fought!
Organise, occupy, expropriate
the ruling class!
A shorter working week at the bosses’ expense, without loss of pay.
No part-time work!
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