Class and COVID-19

17 September 2020

The issue of class, economic inequality, has for some time been conspicuously absent in contemporary political debate. In the wake of COVID-19, which will greatly exacerbate income and wealth disparities, such inattention must be addressed.

There are many reasons that class as an issue has been pushed to one side, but the most immediate is that it does not suit the interests of corporations. This can be seen in the cynical manipulation of identity politics. Consider the actions of Amazon. The company has donated money to the Black Lives Matter campaign, enthusing that it stands 'in solidarity with our Black employees, customers, and partners, and are committed to helping build a country and a world where everyone can live with dignity and free from fear.'

At the same time the company sacked an African American employee after he organised a staff walkout demanding better coronavirus protections. Then it advertised to hire ‘intelligence analysts’ (spies) to track activists and union organisers within its own, predominately African-American, work force. Meanwhile, the personal wealth of Jeff Bezos almost doubled to over $US200 billion during the pandemic.

The corporate-funded war against organised labour has been going on for decades in Australia and America, with most of the successes going to corporations — not surprisingly, considering they had the money to fund think tanks, political campaigns, lobbying and all the other techniques to manipulate politics and the public mind.

In America, there is a close correlation between organised labour and income equality. In 1980 over 50 per cent of the population was a union member and the middle class’s share of income was also over half. Now, union membership and the income share are both just over 10 per cent: the correlation is exact.

America is facing a K shaped recovery after the virus, which heralds even greater income inequality and predatory behaviour by employers. The worth of America’s richest 400 people has risen by $US3.2 trillion, up $US240 billion since the pandemic started. At the same time, lower class employment is soaring, with the layoffs hitting black workers hardest.

'The method of subjugating the lower classes, financialisation, is new, but the pattern is old.'

In Australia, there has also been a sharp decline in organised labour, with only about 15 per cent of workers being unionised. That means protections and representation are weak, especially for younger workers, who face gloomy prospects in the wake of the economic shut downs. But the picture

ECONOMICS

Class and COVID-19

Subscriber login