Does the ALP have a social democratic vision?

All sides of politics recognise the infrastructure deficit and the need "to do something about it". It is hurting our productivity – and in so doing hurting both workers and business. But we have a CHOICE in the WAY in which we respond to that crisis.

The Labor government can choose a path of austerity – attacking pensioners, the social wage, the welfare state, and industrial rights and liberties. Or it can choose to embrace social democracy more than merely rhetorically – returning to questions of distributive justice and 'the social good'. And Labor can choose to act on those principles of distributive justice by committing to a gradual expansion of the social wage and welfare state as a proportion of GDP - instead of embracing socially damaging 'ceilings' on tax and social expenditure. Such 'ceilings' would only flow into greater social disadvantage and injustice - and most likely into infrastructure privatisation whose inefficiencies hurt both business and consumers.

Notions of the social wage, public infrastructure and welfare 'crowding out' the private sector also need to be challenged. A benefit of relative economic abundance is that consumers can potentially have significant room for discretion in their spending priorities at the same time as a decent proportion of peoples' incomes is diverted into the 'social infrastructure' of services, physical infrastructure (eg; transport, communications, schools, libraries) and welfare – without which society itself would collapse, or lapse into barbarism. It also means that people can potentially enjoy earlier retirement ages and shorter working weeks – as technological improvements to productivity make this possible over time without hurting absolute material living standards. Though taxes would need to rise in order to maintain that "social infrastructure". (a fair 'trade off') The Nordic countries, and other European countries such as Denmark and the Netherlands – give us some idea what might be possible.

But in order to pursue such a social democratic vision Labor cannot and should not 'hem itself in' with ill-thought-out five year commitments on superannuation concessions which do not even have the authority of a National Conference position behind them!

Also, another hung parliament cannot be completely ruled out, and the Greens will likely want reform on tax and tax concessions in that event. 'Locking itself in' to such a position simply leaves Labor open to further accusations of promise-breaking should reforms and that area become necessary; or are seen as preferable after a meaningful, inclusive and genuine internal debate.

If removing superannuation concessions, reforming dividend imputation, and restructuring the broader tax mix can bring in tens of billions there is simply no need for the kind of austerity Labor is contemplating in order to return to surplus. What's more – Labor can implement such a program WITHOUT harming the low and middle income demographics which it depends upon for its electoral base. It can aim at a fairer contribution from the wealthy and the upper middle class. And through reform of tax, welfare and the social wage – Labor can pursue a distinctively social-democratic vision of 'the good society' which is much deeper than simply 'more and more' private consumption and production – regardless of the social cost.

But by contrast – allowing social and economic infrastructure to 'wither on the vine' will hurt everyone – workers and business included. And turning to privatisation of infrastructure also passes the price of inferior cost-structures on to consumers – including both citizens and businesses.

Standing for the same agenda of austerity and distributive injustice as the Liberals – but 'not quite as much' isn't enough to cut it for Labor; to inspire and mobilise the people Labor needs behind them to win this election. Labor needs to forget the 'small government' template: and instead stand unambiguously for social welfare and social justice; and a distinctively social-democratic vision of 'The Good Society'.