The last time your correspondent was in the path of a hurricane was in 2008, in Corpus Christi, Texas, where Ike was barreling through. It was aimed at Galveston, but they wouldn’t let us in, and so Corpus Christi was closest, the body of Christ spread along the coast, ready to suffer afresh.
There, as the storm approached, and avenues of tall palms lashed from side to side, I watched as people started to make preparations; shopkeepers dragged stuff inside and teams of people put down sandbags and boarded up windows.
I have never seen so many people move so fast, so collectively. It was like a movie sped up. Everyone moved with such focus.
There was a touch of that in the malls on Sunday afternoon, as Dan Xio Ping’s (that’s a new one, hey) announcement spread throughout the city. At Southland queues formed at the supermarkets, the craft stores and the books/games open stalls at the atrium. Jigsaws were going out the door – people had three or four under each arm. Etsy girls were five deep in the Primark equivalent.
There was what one hadn’t seen before; the slightest touch of fear and foreboding in people’s eyes, along with that same purposefulness I had seen in the path of that hurricane. It went beyond the silly toilet paper wars of the first phase, which had been a slaking of anxiety.
Now, people were neither aggro nor considerate. Just focused. How that will hold over six weeks remains to be seen.
The Monday announcement that most retail will close has really underscored the fact that this one city is going through a very singular process: an extreme lockdown, neither at the start of a process, nor during a situation of raging mass death. It has neither the possibility of total avoidance, nor the energy of panic to enforce it.
The question now becomes whether it can be maintained — not by security forces, but by our own internal discipline and commitment. If that cannot be achieved, then it seems doubtful that security enforcement in a non-totalitarian society could impose a regime of limited movement.
Say what you like about a government like, maybe, Vietnam’s, but they make the Trans run on time. I’m under no illusions about the capacity of some of our cops to be rough. I just doubt their capacity to do it efficiently.
We got into this mess not only because of Victoria’s unique rainbow bulldozer left neoliberalism, but because, well, everything at lower levels is just so slack.
You just see frontline workers all the time breaking basic protocols. Of course it was ever thus. The idea that ruthless efficiency will occur at a state level in response to a level of threat is a consoling myth gained from old World War II movies.
Everything is desperately improvised at some level. Yes, the Andrews government has responded with steadily greater degrees of clarity to the situation as it had unfolded.
But there has still been an eye to the spin and the image, especially in earlier stages. It’s the government’s lack of ability to impose strong measures, not their crypto-fascist demands that people wash their hands, that’s the problem.
Some of the earlier measures were authoritarian cosplay, a continuation of the government’s “normaltime” strategy to not be outflanked on law and order, when we had such a thing. That habit of mind continued into the emergency, and here we are.
The Andrews government wanted above all to be a government of stability and order, to cement Labor as the natural party of government in Victoria, after the gift win of 2014. It now faces the very thing few Labo(u)r governments really want — not merely the opportunity, but the necessity to think and act radically, as reality itself moves to the “left” of the standard political settings.
There is no way to avoid this now. To be insufficiently radical now would be destructive by inaction. For example, discussion of the hit that small businesses are going to take is being done as if they were in the path of a hurricane, to be knocked over by natural force.
Businesses can be saved by stronger measures on their dead costs. So take the commercial rent deal further, and abolish commercial rents for small businesses, especially retail, for the next two months.
Make the landlords apply for compensation, and only award it to those who can show genuine personal hardship arising. Commercial property holding firms should be the first entities to go broke in this, not the last.
Freeze business loans for two months for all businesses under $10 million, simultaneous with paid pandemic leave to workers. Really, there isn’t any such thing as “a business”. It’s an abstraction of various material processes, given legal form.
An event like COVID-19 simply disassembles that multi-levelled ensemble. Yes, some firms are going to go under, if their customers go to out-of-state suppliers. Yes, store-based retail will suffer in relation to online suppliers.
But as long as the government acts decisively to stop dead costs shambling on zombie-fashion, there is no reason why many, many businesses cannot simply go into hibernation and emerge afresh when demand re-emerges. With radical action, the government might emerge as an audacious hero from this.
A still more radical possibility would be to create a “co-operative” fund, which gives state loans and coverage to small businesses that want to convert to employee-run/owned co-ops.
That relieves burdened owners of obligations they can no longer fulfil, and keeps activity going — as co-op owned businesses can adapt their wages as demands and use state payments as a subsidy.
This happened in Greece during the 2010 crisis, and the new Syriza government extended legal protection to such operations. But, to adapt Churchill, Labo(u)r parties do the right, radical thing eventually, but only after trying everything else first.
No Labor government has been more determined to run a left neoliberal model than Andrews’. That’s exactly why they took this hit, and the more traditionally social democratic Arden government in NZ didn’t.
The Andrews-Pallas government may have wanted to surf forever on simple growth based international students, property spec, hospo and wage theft. None of that now applies, and we are on the edge of what one might call “emergency post-capitalism”. The virus may be like a hurricane, but there the analogy ends.
This is a human problem, with human solutions, and with audacity and boldness we can come out of it as a better society. Or we can just pile up the sandbags and wait for the deluge.
Interesting article but I was very disappointed to see name calling creeping in. It is insidious and destroys civil discourse. I am afraid that, for me, credibility of the article just zeroed with the Chinese reference to Dan Andrews.
Bravo! May the internet hum with radical ideas!
You’ll frighten the horses with calls like that.
A nice consistent essay, Guy, (so far as it goes) but conspicuous by its absence is a (recommended) strategy for the next wave of an ‘outbreak’ and a strategy for the ‘outbreak’ after that. There is no sense of the long term which is what is relevant here.
As to “The Andrews-Pallas government may have wanted to surf forever ..” so did the WA and Federal governments of 2012-13 when iron ore touched US$100 / tonne. Such, as I am sure that you are aware, is a feature of Australian politics; i.e. just get fat on the farm without bothering to develop “cutting-edge” industries.
Indeed it is, as you say, “a human problem, with human solutions ..” . However, we need to ask : “is the approach optimal”?
” … so did the WA and Federal governments of 2012-13 when iron ore touched US$100 / tonne.”
It closed yesterday at USD 114 per tonne. Helping to keep us all afloat during this crisis.
THAT is the irony which was dismissed out of existence at the time. The price has recovered but WITHOUT the boom. The lower end of the electoral spectrum in QLD didn’t comprehend the relationship either. It thought mining = jobs despite the obvious (ongoing) mechansiation.
If memory serves the A$ attained US$1.05 in July 2013 (I should check). Now it is at US$0.71. Take a look at the Plimsoll line of Ship Australia should the PRC give us a one fingered salute which, currently, I’d place at 50:50.
The iron-ore price has recovered, which has gone a long way to boosting the government coffers at a time when its needed most.
Bit much to expect a price spike to lead to a boom in the midst of a pandemic, especially when its largely driven by the terrible conditions in our main Fe rival, Brazil.
The price had recovered to $100/t well prior to the pandemic! With the exceptions of declines to $90 and $80 for Sept and Nov last year, respectively, the price has hung about US$100.
Ergo there is NO relation between a BOOM and a price of $100 (see for yourself). As an aside, your remark confirms my initial post. Your implication would have the price well below $100 with ain’t the case!
I think we mostly agree actually. The price is holding up because Brazilian supply has shrunk more than Chinese demand. As the Brazilian supply shock is considered not to be long term, this wont lead to massive investment in bringing extra supply to the market. No investment = no boom.
Absent because uou cant put everything in one article. This was about the next few months
The mentality of the press, in regard to this business, *is* the obsession of the (at most) “next few months”. I have a very high for Keynes and his essays concerning the short term (revolutionised economic thinking) but the lurching from pillar to post is suppressing options regarding policy.
Blame is a one-person perspective. Melbourne is not the only place on the planet that has seen the virus numbers spike. It’s pointless stating its Daniela Andrews and his government’s fault. There’s more to play out here and I believe armchair journalists and commentators should really be more cognisant that there may well be further issues in other states and countries that currently have low or no numbers. Blaming is like saying to a parent that has a child who has done something terrible that it’s their fault they did it. We are all, to some degree, at fault. How many people have you witnessed or observed to have not followed the rules – if only just a little bit? I can say I know many people who have generally followed rules but not all of them all of the time. I would argue that no-one is perfect in this situation and that we all have to wear at least a little bit of the blame each.
Thanks for that bit of lateral thinking Guy.
Best thing that Crikey’s provided today.