Imagining ‘The Good Society’

In a market economy, provision of services does not necessarily relate directly to the complex tapestry of human need. An example of this, for instance, is medical services - where providers, including medical practitioners and pharmaceutical companies, can have the motivation to over-prescribe services.

Further examples include the withdrawal or under-provision of banking and telecommunications infrastructure and services in rural and regional Australia following sweeping privatisation. Added to this is discrimination against the poor by private banks - with excessive fees.

When the maximisation of share value informs investment, goods and services are provided on this basis - and the needs of citizens and minorities are lost in the drive for profit.

Also, without local content laws for television “market forces” would leave Australia as a cultural wasteland. Indeed, there are strong arguments for further state intervention to support Australia drama, music, theatre, films, art and other forms of cultural expression: to ensure that Australian cultural identity is not eclipsed.

And sometimes abuse of markets can give rise to corruption, exploitation of consumers, and nepotism.

“Public Private Partnerships”, where social infrastructure such as roads, public buildings, schools, are provided by and held by the private sector long-term, can result in the fleecing of citizens in their capacity as consumers and taxpayers.

So while there are sometimes significant benefits to competitive markets, there are strong arguments for co-operative enterprise as well.

Co-operation, including strategic and public monopoly can provide economies of scale and pooled research and development. Competitive and collaborative efforts could imaginably give rise to landmark developments in such crucial areas as pharmaceutical and medical research.

And without the profit motive (i.e. instead spurred only by public interest) there is no rationale for “built in obsolescence”, “staggered development” and “phased” release of technology in order to maximise sales.

Finally: strategic but strong state intervention could give rise to revolutionary economic developments that otherwise could be stymied as a consequence of vested interest.

Surely state intervention could herald in a state of “critical mass” in the development and provision of renewable energy. “Clean coal” is mainly hypothetical and unproven, but powerful vested interests in the energy industry demand preference regardless of science or cost.

As the world confronts the spectre of “peak oil”, for example, who is going to provide and maintain the new infrastructure and new car models as drivers look increasingly to electric and hybrid vehicles?