How Elites Hijack Governments & Ways to Reclaim Power

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Description

Explore how Australia’s wealthy elites hijack governments and discover actionable strategies for citizens to reclaim democratic power.

Introduction

In today’s world, the influence of wealthy elites and multinational corporations on governments is undeniable. This article examines how these powerful entities hijack government policies and provides actionable strategies for Australians to reclaim democratic control. It highlights the political choice of underfunding public services based on neoliberal ideology and the importance of fair taxation by the wealthy and corporations.

Mechanisms of Hijacking Governments

1. Lobbying and Campaign Contributions

Lobbying and campaign contributions are the most direct ways wealthy elites influence government policies. In Australia, corporate donations to political parties are substantial, with mining magnates and big businesses contributing millions of dollars during election cycles. This financial influence ensures that policies favour the interests of the wealthy over the needs of ordinary Australians.

– Statistics: According to the Australian Electoral Commission, over $70 million was donated to political parties in the 2019-2020 fiscal year, with a huge part coming from large corporations.
– Case Study: The Adani coal mine approval highlights how corporate lobbying can override environmental concerns and public opposition.

2. Revolving Door Between Corporations and Government

The revolving door phenomenon refers to the movement of individuals between roles in government and the private sector, creating conflicts of interest. This practice is prevalent in Australia, where former politicians often take up lucrative positions in industries they once regulated.

– Example: Former Australian Trade Minister Andrew Robb joined the board of a Chinese company involved in the controversial Darwin Port lease deal, raising concerns about national security and policy bias.

3. Tax Avoidance and Offshore Banking

Multinational corporations employ complex tax avoidance strategies to minimize their tax liabilities. While federal spending is not dependent on tax revenue, tax avoidance by the wealthy and corporations worsens inequality and shifts the tax burden to lower-income citizens, undermining the principle of fairness in taxation.

– Statistics: The Australian Taxation Office estimates that multinational tax avoidance costs Australia over $2 billion annually.
– Example: Companies like Google and Apple have been scrutinized for shifting profits offshore to reduce their Australian tax bills.

4. Influence on Media and Public Opinion

Wealthy individuals and corporations control significant portions of the media landscape, shaping public opinion and policy discussions to their advantage. In Australia, media moguls like Rupert Murdoch have substantial sway over political narratives.

– Example: News Corp’s extensive coverage favouring certain political agendas shows the power of media influence on elections and policy debates.

Consequences of Corporate Hijacking

1. Economic Inequality

Corporate hijacking worsens economic inequality, with policies favouring the rich at the expense of the wider population. The wealth gap in Australia continues to widen, undermining social cohesion and economic stability.

– Statistics: According to the Australian Council of Social Service (ACOSS), the top 20% of Australians own 62% of the country’s wealth, while the bottom 20% own just 1%.
– Impact: Rising costs of living and stagnant wages leave many Australians struggling to make ends meet.

2. Erosion of Public Services

The underfunding of public services in Australia is a political choice driven by neoliberal ideology, not a necessity. Despite the government’s ability to finance these services through its sovereign currency, cuts are made under the guise of fiscal responsibility, disproportionately affecting those who rely on public healthcare, education, and infrastructure.

– Example: Cuts to Medicare funding and public school budgets highlight the consequences of neoliberal policy choices.

3. Undermining Democracy

The undue influence of corporations on government policies undermines democratic principles. When policies cater to corporate interests rather than the public good, citizens lose faith in democratic institutions, leading to widespread disillusionment.

– Example: The belief that politicians are more responsive to corporate donors than to voters has fuelled political apathy and disenfranchisement.

Strategies for Reclaiming Power

1. Campaign Finance Reform

To counter corporate influence, Australia needs robust campaign finance reforms. This includes implementing public funding for campaigns, setting strict limits on contributions, and ensuring transparency in political donations.

– Proposal: Introduce a cap on individual and corporate donations to political parties and require real-time disclosure of all donations above a certain threshold.

2. Strengthening Anti-Lobbying Laws

Australia must strengthen its anti-lobbying laws to reduce corporate influence. This includes closing loopholes that allow for indirect lobbying and increasing penalties for non-compliance.

– Recommendation: Set up a mandatory register for all lobbyists, with detailed records of their interactions with government officials, and enforce cooling-off periods for former politicians transitioning to lobbying roles.

3. Promoting Tax Justice

Fair taxation ensures that everyone pays their share, reinforcing social equity. Although taxes do not directly fund federal spending, they are essential for managing inflation, redistributing wealth, and ensuring that corporations and the wealthy contribute fairly to society.

– Strategy: Collaborate with global partners to implement the OECD’s Base Erosion and Profit Shifting (BEPS) measures and introduce a minimum corporate tax rate.

4. Empowering Independent Media

A diverse and independent media landscape is vital for a healthy democracy. Australians should support independent media outlets and promote media literacy to ensure balanced and accurate reporting.

– Support: Provide funding and grants for independent journalists and media startups and encourage public consumption of diverse news sources.

5. Grassroots Movements and Civic Engagement

Grassroots movements play a crucial role in challenging corporate power and advocating for change. Australians can reclaim power by actively taking part in civic engagement and community organizing.

– Tips: Join local advocacy groups, take part in public consultations, and use social media to raise awareness and mobilize support for key issues.

Summary

The hijacking of governments by wealthy elites and multinational corporations poses a significant threat to democracy and social justice. However, through campaign finance reform, strengthening anti-lobbying laws, promoting tax justice, empowering independent media, and supporting grassroots movements, Australians can reclaim democratic control and ensure a fairer society.

Question for Readers

How can you contribute to reclaiming democratic control in Australia? Share your thoughts and actions in the comments below!

Call to Action

Join the movement for a fairer Australia! Stay informed about ways to act and share this article with your network to spread awareness.

Social Sharing

Encourage readers to share the article using these hashtags: #Democracy, #CorporatePower, #Grassroots, #TaxJustice

References

Australian Electoral Commission: https://www.aec.gov.au
Australian Council of Social Service (ACOSS): https://www.acoss.org.au
Australian Taxation Office: https://www.ato.gov.au