Politics is a reflection of economics.
Economics is everything. It shapes, adapts and forces every technological change, driving production higher and extracting more wealth for the ruling class.
Let’s not deny it—we live in a class society. That is the first and most fundamental truth we need to understand. Within this society, we all play a part in the economy in different roles, on the one hand I am a worker and on the other hand I am a consumer. I might save my money and feel, for a moment, that I’m in the same position as the ruling class. I might spend money at the shops, rent a house, or even buy a house and a car, just like others do and feel invested in this society and economy. But what does any of that actually mean? Where is the real difference?
The truth is simple: if you’re reading this, you are part of the working class, not the ruling class. And as a member of the working class, you have very little control over what truly happens in the economy.
The ruling class owns and controls the economy. Governments—the ones we believe we freely elect—do not run the economy for you and me. They manage it on behalf of the ruling class. For example, lobbyists representing the elite are granted free passes into parliament, giving them direct, ongoing access to politicians. Senator Pocock has challenged this system, pointing out:
“Ministers aren’t accountable for who they meet with and more than 2000 people have 24/7 access-all-areas passes with no public visibility over who they are or who gave them this access … the professionalisation of lobbying in this country into what is now a multi-billion dollar industry requires improved regulation, and the time to make those changes is now.”
https://www.davidpocock.com.au/major_parties_shirk_serious_lobbying_reform
Meanwhile, you and I do not have 24/7 access to politicians—though we should. After all, it is the working class that creates the wealth of this nation. Our labour creates new value. Every product of the economy rests on human work, and every single activity in the economy is someone’s work.
If you don’t agree with that basic idea, then continue on as you are—but understand, nothing will ever change. If you don’t visualise how things can be different, there is no possibility of change.
In case you do agree, then the next question becomes unavoidable:
If we, the working class, are the sole creators of wealth, shouldn’t we also have the largest say in how the economy is run?
AI vs workers.
As workers, we get worried about technological changes taking jobs, and how this is going to affect our lives, (our basic individual consumer place in society).
Changes in technology have always occurred. What makes humans unique is not technology itself, but our ability to labour, to consciously transform nature and create the tools we need. Technology is the product of human labour, not the other way around.
New technology has always replaced old. The Industrial Revolution brought the locomotive to replace the horse and the steamship to replace the sail. Production became faster and more powerful, but this wasn’t just about machines taking jobs, it reorganised labour and increased exploitation. Machinery allowed capital to squeeze more out of workers in less time.
Now we face the same question with AI. It can design, operate machinery, even build a house quickly. But AI is only a tool, an extension of our labour. On its own, it cannot create wealth. Machines and AI are what Marx called “constant capital”, they can only pass on the value already in them. Only living labour creates new value.
Take the car industry. Imagine car manufacturers announced they’re returning to Australia. Politicians, union leaders, business reps would all celebrate. But the factories of today won’t employ tens of thousands as before. Automation and AI will dominate. A few technicians will maintain machines, designers will work remotely, and production will run with minimal labour. For capitalists, this looks perfect: lower wages, fewer disputes, higher output. But here lies the contradiction, more output with fewer workers doesn’t resolve the crisis, it deepens it.
Capitalism depends on profit. Machines don’t create profit, only labour does. As workers are displaced, less new value is created. Meanwhile, production keeps expanding, flooding markets. The result is overproduction: more goods than can be sold profitably. This is why crises erupt again and again, not simply because workers can’t buy enough, but because production for profit always collides with human need.
AI won’t solve that contradiction. In fact, it may sharpen it by reducing the share of living labour in production. Unless we face the real question, who creates wealth and who controls it, the problem remains.
It all sounds complicated, but it isn’t. We are all part of the broader society, but some are benefitting economically far more than others from the labour of the majority. The only way to change this is to consider a different future, one where AI benefits the majority, where those that create the wealth own the wealth, and no longer relying on a government structure that does not represent us.
The world is changing, and to truly be part of that change we must not just understand it, but dare to imagine what the future could be. A future where education is free and equal for all, where healthcare is a human right, and no one is left homeless. A future with world-class public transport, high-speed rail carrying us across the continent in hours, and thriving industries that guarantee secure jobs and advancement for Australian workers.
It could be a future where our trade with Pacific nations is built on equality and mutual respect, not on acting as the region’s deputy sheriff. A future where culture and the arts flourish at the highest level, enriching every life.
It could be a future where real democracy begins on the shop floor, discussing targets of production to benefit all society. Profits go to the shop floor and decisions made by the shop floor as to how and where to spend those profits. Where unions are able to compete economically with business, build childcare centres for its members, housing, or holiday parks for members.
The possibilities before us are limitless, if we choose a society built for people, not for profit.
We hope that this article has been helpful in providing references that will encourage you to begin your own journey of understanding. The discussion contained in our articles often reflects our own author conclusions, based on the many years of observation and research. However, we understand that many of you have your own piece of the puzzle to add to our collective understanding. So, we encourage you to participate in this discussion. Are our conclusions correct or incorrect? Should we provide more writing on some simplified references in this article? Please add your respectful and constructive comments below. Also, if you have any articles of your own to submit to The Great Southern Club, we welcome your perspective on issues facing Australia, Pacific Island nations, Timor-Leste, and Indonesia.
