Here comes ‘HowRuddism’

The Rudd Labor Government is obsessed with productivity. It was “productivity” that drove Peter Reith to attack maritime workers. Managing capitalism means that Labor will also attack workers. Put simply, productivity means more work out of fewer people.

Labor minister Lindsay Tanner promised to take a meat axe to the Public Service as an example to private employers of what to do.

The Defence budget will grow in real terms. This shows where the priorities of the Conservative Rudd Labor Government lie. What about better wages and conditions for more nurses and teachers?

On the Budget, it is now clear that to show "the markets" just how economically "responsible" they are Rudd and Swan will deliver greater Budget cuts than their previously stated figure of $10 billion - possibly $20 billion or more. This will have little effect on inflation, interest rates, or employment. Most of these are factors outside the Government's control.

Profit rates (as compared to profit levels) are not that high historically. This fact will force Rudd to adopt anti-worker policies, especially when there is a downturn.

Rudd has won victory with the support of the working class. They have adopted his conservative approach, if not enthusiastically, then at least trustingly. As his IR backpedal shows, Rudd will breach that trust, and fairly quickly, possibly producing a backlash among ALP members and supporters. This does not mean there will be a shift to the Left.

The most important factor in the left/right dichotomy is the quietude of the working class. Strike levels are very low and (partly as a consequence) the ideas of class collaboration pervade the working class.

The clash between the conservative reality of a Rudd Government and the expectations the ALP has created in society, plus the skills shortage in a time of ongoing economic boom, may see some increase in class conflict, although the memory of class struggle is lost to most workers.

But inflation, interest rates and the like are eating into workers’ wages. The fight for better wages could well erupt soon, pitting workers against the HowRuddistas.