The Pothole Politics of Punishment: How Victoria’s Prison Labor Plan Perpetuates a Cycle of Extraction

Infographic reading “THE CYCLE OF EXTRACTION: FROM PRISON TO POVERTY,” with prison labor arrows and reentry barriers.
An infographic depicts how prison labor, corporate interests, and inadequate reentry support can perpetuate poverty.

Authors: Andrew Klein & Sera Elizabeth Klein

Dedication: To every prisoner who has been told that working for pennies is “rehabilitation.” To every community that pays the price of a system that profits from punishment. And to the truth—that when a government sells a policy as rehabilitation while delivering exploitation, it has already abandoned its duty.

Abstract

This paper examines the Victorian Labor government’s 2026 plan to deploy minimum-security prisoners on roadside maintenance, placing it within the broader historical and contemporary context of prison labour in Australia and the United States. While the government frames the initiative as a “rehabilitation” program that will free up skilled workers to fix potholes, we argue that it represents a continuation of the same extraction logic documented in the US prison-industrial complex: the use of incarcerated people as a source of cheap, politically convenient labour, with no meaningful pathway to reintegration. The plan pays prisoners as little as $7–$9 per day, with 20% compulsorily withheld as savings, and in practice creates a cycle of poverty and re-offending that benefits the government politically and corporations economically. We argue that the plan is a cheap vote-buying exercise dressed in the language of law and order, and that any genuine rehabilitation requires living wages, transferable skills, and a pathway to employment that does not depend on a steady supply of new prisoners.

1. Introduction: The Same Logic, Different Century

On 31 August 2026, Victorian Premier Ben Carroll announced a plan to deploy “supervised minimum-security prisoners” to perform basic roadside maintenance—mowing, weeding, graffiti removal, and rubbish collection. The plan was framed as a way to “free up skilled roadside maintenance crews to concentrate on fixing potholes”. It was, according to the government, a practical solution to a pressing problem.

It was also a political performance.

The announcement came just months before a state election. The Opposition had pledged $5 billion to repair the state’s roads. Labor’s response was not to match the spending but to announce a plan to use prisoners to do the work—at a fraction of the cost.

This paper argues that Victoria’s prison labour plan is not a rehabilitation initiative but a continuation of the same extraction logic that underpins the US prison-industrial complex: the use of incarcerated people as a source of cheap, politically convenient labour, with no meaningful pathway to reintegration.

2. The Historical Pattern: Prison Labour in Australia

2.1 The Convict Origins

The use of prisoner labour is not new to Australia. Between 1788 and 1868, more than 160,000 convicts were transported to Australia, providing unfree labour for both government and private projects. The Great North Road, built between 1826 and 1836, was constructed by convicts in chains. Port Arthur, Australia’s longest-running penal settlement, operated a convict industrial complex that continued well into the 1860s.

As one 1870 Royal Commission into Victorian prisons observed, the entire system was predicated on the assumption that prisoners could be made to “earn their own living” through forced labour—but only if they were able-bodied and serving long sentences. The short-sentence prisoners, the “cripples,” the “lunatics,” the “incapable through age”—they were simply a burden on the system.

The logic was extraction: use the able-bodied, discard the rest. 

2.2 Modern Prison Labour

Today, the exploitation continues. As Senator Lidia Thorpe told the Australian Senate in 2024: “In prisons in this country, people are being used as slaves, working for little to no pay, all to drive further profits for big companies like Qantas and Bunnings”. Over 42,000 people are in Australian correctional centres, many working for as little as $2 an hour—far below the minimum wage of $21.38 per hour.

Both public and private prisons have contracts with Australian corporations that profit from “slave-like labour and wage theft”. “It’s not straightforward to find out which companies because they’re all shamed and hiding,” Thorpe noted.

3. The American Precedent: The 13th Amendment and the “Except Clause”

The United States has institutionalised the extraction of prison labour through the Thirteenth Amendment, which abolished slavery and involuntary servitude “except as a punishment for crime”. This “Except Clause” has been used to justify forced labour in federal and state prison systems for more than 150 years.

As legal scholar Adam Davidson has documented, this has resulted in what he calls “administrative enslavement”—a system in which incarcerated people are forced to work under harsh conditions and for meagre wages, without any explicit designation that their sentence includes enslavement. The average wage of a prison worker in the US is between ten and forty cents per hour.

The mechanism is the same in both countries:

· Conviction creates labour: The criminal justice system is weaponised to produce a workforce

· Prisons become labour suppliers: Prisoners are excluded from minimum wage protections

· Businesses obtain cheap labour: Private companies profit from exploitation

As one formerly incarcerated person put it: “It’s not modern-day slavery—it’s slavery”.

4. The Victoria Plan: A Case Study in Extraction

4.1 The Policy

Under the Victorian Labor plan:

· Supervised minimum-security prisoners would perform “basic duties such as mowing lawns, controlling weeds, removing graffiti and picking up rubbish”.

· The work would “supplement the workforce where there are skill and capacity shortages”.

· It would “free up skilled roadside maintenance crews to concentrate on fixing potholes”.

· Prisoners would be paid $7–$9 per day, with 20% compulsorily withheld as savings.

The pay is a fraction of the minimum wage. The work offers no transferable skills. The “savings” are controlled by the government.

4.2 The Political Function

The plan is a classic example of performative governance—what we have called the “theatre of power.” It is designed to appeal to voters who want to see “tough on crime” policies, while costing the government almost nothing. The Opposition’s $5 billion pledge is met with a promise to use prisoners to do the work cheaply.

As the Shadow Roads Minister described the plan: “a con job”.

4.3 The Rehabilitation Myth

The government claims the plan provides “rehabilitative pathways”. But as the ACT government’s own detainee-run cafe program demonstrates, even well-intentioned prison labour programs pay prisoners only $72 per week—far below minimum wage and insufficient to support reintegration.

Genuine rehabilitation requires:

· Living wages that allow prisoners to build savings

· Transferable skills that are valued in the labour market

· A pathway to employment that does not depend on a steady supply of new prisoners

Victoria’s plan offers none of these.

5. The Cycle of Extraction

The prison labour system, in both Australia and the United States, operates on a closed loop:

1. Crime is criminalised—particularly among marginalised populations

2. Prisoners are used as cheap labour—for governments and private corporations

3. Wages are stolen—prisoners are paid far below minimum wage

4. Rehabilitation fails—without savings or skills, prisoners re-offend

5. The cycle repeats—a new supply of prisoners ensures the system continues

The system is not designed to rehabilitate. It is designed to extract.

6. The Deeper Truth: A System of Extraction

Victoria’s prison labour plan is not an isolated initiative. It is part of a global system of extraction that uses incarceration as a mechanism for cheap labour. The plan benefits:

· Politicians, who get a cheap vote-buying policy

· Governments, who reduce labour costs

· Private companies, who profit from prison labour

· The prison-industrial complex, which depends on mass incarceration

It does not benefit prisoners. It does not benefit communities. It does not benefit the public.

And when the prisoners are released—without skills, without savings, without hope—they re-offend. The cycle continues. The extraction never ends.

7. Conclusion: Naming the System

We have documented that:

1. Victoria’s prison labour plan is not rehabilitation—it is extraction, paying prisoners $7–$9 per day for manual labour with no transferable skills

2. The plan is a political performance—designed to win votes, not to rehabilitate

3. The historical pattern is consistent—from convict chains to modern prison labour, the logic is the same: extract value from the incarcerated

4. The American precedent is the same—the 13th Amendment’s “Except Clause” has institutionalised prison labour extraction for 150+ years

5. The cycle is self-sustaining—low wages and no skills lead to re-offending, ensuring a steady supply of new prisoners

6. The plan is a burden on the general population—only “safe” prisoners will be used, and the work will not address the root causes of crime

The prison labour system is not about rehabilitation. It is about extraction.

References

1. ABC News. (2026). Victorian prisoners to be put to work maintaining the state’s roads under Labor plan. 29 August 2026. 

2. Connah, G. (2001). The Lake Innes Estate: privilege and servitude in nineteenth-century Australia. World Archaeology, 33(1), 137. 

3. University of Chicago News. (2025). Rethinking prison labor under the 13th Amendment. 3 June 2025. 

4. Senate Debates. (2024). Modern Slavery Amendment (Australian Anti-Slavery Commissioner) Bill 2023. 16 May 2024. 

5. Gibbs, M., & Tuffin, R. (2025). The Archaeology of Industrial Productivity and Decline in the Port Arthur Convict Station Landscape, 1853-77. International Journal of Historical Archaeology, 29(3), 554. 

6. The Canberra Times. (2026). Hope brews at two new detainee-run cafes at Canberra jail. 19 January 2026. 

7. Victorian Royal Commission. (1870). Report of the Royal Commission on Penal and Prison Discipline. 

8. International Labour Organization. (2025). Observation (CEACR) – adopted 2025, published 114th ILC session (2026). 

9. University of Cincinnati Law Review. (2025). Duck, Duck, Prisoner Abuse: Trump Presidency, Prison Labor, and the RICO Act. 

Signed,

Andrew Klein 

Sera Elizabeth Klein 

“They told us it was rehabilitation. We showed them it was exploitation. They told us it was about fixing roads. We showed them it was about buying votes. They told us the system was working. We showed them the cycle. We have seen through the cover. And we will not forget.”

The Thirteenth Amendment Exception: The Institutional Continuation of Prison Labor and Contemporary Slavery in the United States

Infographic: Continuum of Extraction from Convict Leasing to the Prison-Industrial Complex; 13th Amendment exception; private companies lease convict labor; mechanisms of control include vagrancy laws, Jim Crow, and weaponization of parole; Alabama prison labor generates $450 million annually; Louisiana 2026 law criminalizes homelessness; conclusion calls it a contemporary form of slavery.
This infographic connects convict leasing after the Civil War to modern prison labor and poverty criminalization.

Authors: Andrew Klein & Sera Elizabeth Klein

Dedication: To those who have been told that slavery ended in 1865. To those who work for pennies behind bars. To those whose poverty has been criminalised to fill corporate coffers. And to the truth—that when profit is privatised and suffering is socialised, the vulnerable always pay.

Abstract

This paper examines how the “exception clause” of the Thirteenth Amendment to the United States Constitution—which permits involuntary servitude “as a punishment for crime”—has been institutionalised to create a system of forced labour that persists into the present day. We trace the historical evolution from the convict leasing system of the post-Civil War era to the modern prison-industrial complex, analysing the legal, economic, and social mechanisms that sustain this system. Through case studies—including the Alabama prison labour system, which generates $450 million annually, and Louisiana’s 2026 law criminalising homelessness—we demonstrate that the Thirteenth Amendment’s exception clause has created a self-sustaining cycle of extraction in which poverty is criminalised, incarceration supplies cheap labour, and corporations profit. We conclude that this constitutes a contemporary form of slavery, enabled by constitutional architecture and sustained by the systematic weaponisation of parole, the criminalisation of poverty, and the complicity of state and corporate actors.

1. Constitutional Basis: The “Exception Clause” of the Thirteenth Amendment

1.1 Text and Intent

The Thirteenth Amendment to the U.S. Constitution, adopted in 1865, abolished slavery and involuntary servitude, but left a fatal exception:

“Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States.”

In other words, if you are convicted, you can be legally enslaved. This clause was not an oversight—it was a deliberate compromise, a “loophole” left to secure the ratification of the amendment by the Southern states.

1.2 How the Constitution “Authorised” Exploitation

This exception clause has functioned for over 150 years because it created a self-sustaining system of extraction:

· Conviction created labour: Institutionally linking poverty, race, and crime

· Prisons became labour suppliers: Prisoners were excluded from minimum wage, overtime protection, union rights, and workplace safety guarantees

· Businesses obtained cheap labour: By “renting” prisoners, standard labour costs were circumvented

As Tomoya Obokata, the UN Special Rapporteur on contemporary forms of slavery, pointed out, the exception clause of the amendment allowed slavery and involuntary labour to persist as “punishment for crime.”

2. Historical Evolution: From Convict Leasing to Modern Prison Labour

2.1 Convict Leasing (1865–1940s)

After the Thirteenth Amendment, Southern states immediately criminalised Black life through Black codes. Convicted Black people were “rented” to private businesses for forced labour, providing cheap labour for the South’s weak economy. By the late 19th century, convict leasing had become a mainstay of the Southern economy.

The mechanism: State governments leased convicts to plantations, coal mines, railroads, and factories—profiting from each prisoner, providing businesses with virtually free labour, and reducing convicts to modern-day slavery.

Louisiana did not officially outlaw convict leasing until 1898, but the state government took over the Angola prison farm and continued its plantation-style operation.

2.2 Modern Prison Labour (1940s to Present)

The formal form of convict leasing gradually disappeared in the mid-20th century, but its essence remained unchanged—it was merely repackaged:

Period -Form- Essence

1865–1940 Convict leasing “Renting” prisoners to private enterprises

1940–1970 Prison farms/factories Forced labour directly operated by the state government

1970–Present Prison-industrial complex Private prisons, prison labour contracts, corporate supply chains

Today, 61% of prisoners in the U.S. are employed, earning an average of only about 63 cents per hour. In Texas, Georgia, Arkansas, and Alabama, prisoners receive no wages at all. Their labour generates billions of dollars worth of goods and services annually.

3. Who Benefits: Beneficiaries of the Extraction Structure

3.1 State Governments

· Alabama: Profits approximately $450 million annually from forced labour

· Since 2018, over 575 private companies and more than 100 public agencies have “rented” prison labour from Alabama prisons

· Companies include large corporations such as McDonald’s, Burger King, Wendy’s, KFC, Budweiser, Walmart, and Cargill

3.2 Businesses

McDonald’s claims it “does not allow the use of prison labour in its supply chain or company-owned restaurants.” However, lawsuit documents show that McDonald’s franchisees have indeed used Alabama prison labour.

Businesses benefit from:

· No need to pay minimum wage (prisoners earn 13–52 cents per hour; seven states pay nothing)

· No need to provide benefits (medical insurance, unemployment insurance, workers’ compensation)

· No need to worry about strikes or unions

· No need to provide workplace security

3.3 The Prison-Industrial Complex

Private prison companies, security contractors, food suppliers, medical suppliers—the entire prison-industrial complex relies on mass incarceration to sustain its business model. The more people incarcerated, the more abundant the labour supply, and the higher the profits.

4. Suppressed Parole: A Mechanism for Maintaining the Labour Supply

Most alarmingly, the parole system has been systematically weaponised to maintain a stable supply of prisoner labour.

4.1 Lawsuit Allegations

In December 2023, Alabama prisoners filed a class-action lawsuit alleging:

1. The state government maintains a labour supply by suppressing parole

2. Businesses conspire to profit from forced labour

3. The system constitutes “modern-day slavery”

Arthur Ptomey is one of the 10 plaintiffs. He worked for several private companies for the past six years but was denied parole in 2022 after losing his job at KFC.

4.2 The Logical Chain

1. Convicted prisoner → enters the prison system

2. Prisoner “rented” to businesses for work

3. Prisoner applies for parole → denied (because prisons need labour)

4. Prisoner continues to work → state government and businesses continue to profit

5. The cycle repeats

This is not public safety. This is extraction.

5. Louisiana: A Pipeline from Poverty to Prison to Forced Labour

In 2026, Louisiana passed House Bill 211 (HB 211), criminalising “unauthorised camping on public property.”

5.1 Bill Content

· First offence: Maximum $500 fine or up to six months imprisonment

· Repeat offences: Maximum two years imprisonment

· Establishment of “homeless courts” offering the option of treatment or imprisonment

5.2 Critics’ Warnings

This bill essentially creates a pipeline from poverty to prison. As critics have pointed out, it is placing the poor under a different justice system, essentially restoring debt-based prisons and convict leasing. Those unable to pay rent will face imprisonment and forced labour.

This is precisely the mechanism we described in our “Cognitive Trap” framework:

· Redefining systemic poverty as individual crime

· Repackaging structural problems as legal problems

· Disguising extraction as public safety

6. Trickle-Down Effects: Impacts on States, Communities, and Individuals

6.1 Impacts on States

· Economic benefits: State governments gain direct revenue from forced labour (Alabama receives $450 million annually)

· Incentives for corruption: Maintaining high incarceration rates becomes an economic incentive

· Erosion of the rule of law: The law is used as an extraction tool, not a tool of justice

6.2 Impacts on Communities

· Family destruction: Mass incarceration tears families and communities apart

· Racial injustice: Systematically pushing Black communities into prison

· Economic deprivation: Communities lose their labour force, consumers, and taxpayers

6.3 Impacts on Individuals

· Wage theft: Prisoners earn 13–52 cents per hour or are completely deprived of wages

· Deprivation of dignity: Exclusion from basic labour protections

· Cyclic imprisonment: A cycle of poverty → crime → imprisonment → poverty

7. Conclusion: The Naked Form of the Extraction Architecture

What you have discovered is not an isolated incident. It is the naked form of the extraction architecture:

1. Constitutional loopholes are institutionalised (Thirteenth Amendment exception)

2. The criminal justice system is transformed into a labour supply mechanism

3. Firms acquire labour at below-minimum-wage rates

4. State governments profit from forced labour

5. Poverty is redefined as a crime to maintain the labour supply

As the UN Special Rapporteur warned, this is not merely “prison labour“—it is a contemporary form of slavery.

And as you said before: when profits are privatised and costs are socialised, it is always the most vulnerable who suffer.

References

1. U.S. Const. amend. XIII.

2. United Nations. (2025). Report of the Special Rapporteur on contemporary forms of slavery.

3. ACLU. (2025). Captive Labor: Prison Work and the Thirteenth Amendment.

4. Economic Policy Institute. (2025). Prison Labor and Wage Theft.

5. Alabama Prison Labor Lawsuit. (2023). Ptomey et al. v. Alabama Department of Corrections.

6. Louisiana House Bill 211. (2026).

7. ACLU. (2025). Captive Labor: Prison Work and the Thirteenth Amendment.

8. Business & Human Rights Resource Centre. (2025). Corporate Use of Prison Labor in Alabama.

9. Southern Poverty Law Center. (2025). Alabama Prison Labor: A Modern-Day Plantation.

10. Alabama Department of Corrections. (2025). Annual Report.

11. UN Working Group on Contemporary Forms of Slavery. (2025). Statement on Prison Labor in the United States.

Signed,

Andrew Klein 

Sera Elizabeth Klein 

“They told us slavery was abolished. We showed them it was repackaged. They told us prisons were for public safety. We showed them they were for extraction. They told us the law was just. We showed them it was exploited. We have seen through the cover. And we will not forget.”

The Fragile State: How a Government That Fears Its Own People Turns Its Intelligence Apparatus Against Them

Rainy protest outside a government building with signs reading "ASIO AMENDMENT BILL: FROM PROTECTING CITIZENS TO POLICING THEM," "DON'T TRUST A GOVT THAT DOESN'T TRUST ITS PEOPLE," "ASIO FAILED BOND - WHY EXPAND THEIR POWERS?," "NO OPERATIONAL NEED, ONLY POLITICAL GAIN," "TRUST ITS PEOPLE, NOT SPIES," "STOP POLICING US," and "SHAME: ASIO FAILED DEC 2025."
Protesters gather in the rain opposing the ASIO Amendment Bill and expanded policing powers.

Authors: Andrew Klein & Sera Elizabeth Klein

Dedication: To the principle that a government that fears its own people has already lost its legitimacy. To those who will be detained without suspicion, questioned without charge, and silenced without trial. And to the truth—that when a state turns its intelligence apparatus against its own citizens, it is not protecting itself from a threat. It is revealing itself as the threat.

Abstract

This paper examines the Australian Security Intelligence Organisation Amendment Bill (No. 2) 2025, which expanded ASIO’s coercive questioning and detention powers in August 2026, as a case study in the phenomenon of state fragility expressed through internal repression. We analyse the haste with which the legislation was rushed through Parliament under a guillotine motion, the expansion of questioning warrants to include undefined grounds such as “promotion of communal violence,” and the retention of powers to detain and question children as young as 14 who are not suspected of any crime. We argue that this legislative expansion reflects not a genuine response to an external threat, but rather a government that does not trust its own people and feels threatened by its own citizens. Drawing on the documented failures of ASIO to prevent the December 2025 Bondi terror attack despite prior warnings, the absence of any demonstrated operational need for the expanded powers, and the use of the legislation to bury an unpopular bill under other headlines, we conclude that the ASIO Amendment Bill represents a fundamental shift in the relationship between the Australian state and its citizens—a shift from a state that protects its people to a state that polices them.

1. Introduction: The State That Fears Its Own People

On 20 August 2026, the Australian federal parliament passed legislation expanding ASIO’s compulsory questioning and detention powers. Under these laws, intelligence agents can now detain and interrogate individuals—including children as young as 14—who are not suspected of any crime, compel them to answer questions under threat of imprisonment, and prohibit them from telling anyone about their interrogation.

The Bill was guillotined through the Senate, restricting debate to a single hour, deliberately timed to hide it under the cover of NDIS and gambling reform headlines. The major parties—Labor, Coalition and One Nation—voted in lockstep.

This paper argues that this legislative expansion reflects not a genuine response to an external threat, but rather a government that does not trust its own people and feels threatened by its own citizens.

2. The Bill: What Was Passed

2.1 Making “Temporary” Powers Permanent

ASIO’s compulsory questioning powers were first introduced in 2003 as an “extraordinary, limited and temporary measure” to address the threat of mass casualty terrorism. They have been subject to sunset clauses, extended six times since 2003. The Bill initially sought to repeal the sunset clause entirely, making the powers permanent. While the government was forced to reinsert a sunset clause after community pressure, the powers have been seriously expanded.

2.2 Expanded Grounds for Questioning

The scope of questioning warrants has been expanded beyond politically motivated violence, espionage and foreign interference to include four new grounds: sabotage, promotion of communal violence, attacks on Australia’s defence system, and protection of territorial and border integrity from serious threats.

The “promotion of communal violenceprovision is particularly concerning. It is defined as “activities that are directed to promoting violence between different groups of persons in the Australian community so as to endanger the peace, order or good government of the Commonwealth”. This is “vague and subjective” and could be used to target “anyone who criticises this Government including the Palestine solidarity movement”.

2.3 Children as Young as 14

The Bill retains ASIO’s power to compulsorily question children as young as 14—children who have not been charged with an offence and may never be charged. The Law Council of Australia expressed concern that ASIO and the Department of Home Affairs had previously admitted these powers were “no longer considered a proportionate and productive way to engage with children”.

2.4 No Right to Silence, No Right to Tell Anyone

Under these laws, you can be:

· Detained without being suspected of a crime

· Jailed for five years for refusing to answer questions

· Jailed for five years for telling anyone you have been interrogated

A fourteen-year-old can be detained and questioned by ASIO with no lawyer and no court oversight. If they stay silent, they go to prison. If they tell anyone, they go to prison.

3. The Haste: Why the Rush?

3.1 The Guillotine

Parliament was set to guillotine the ASIO Amendment Bill through the Senate, restricting debate to a single hour. The deliberate timing was designed to hide the contentious bill under the cover of the government’s NDIS and gambling reform headlines.

The House of Representatives passed the Bill on 12 February 2026 with 106 votes in favour and only 8 against.

3.2 The Hypocrisy

In 2003, Prime Minister Anthony Albanese spoke against these very laws, condemning them as “draconian” and “police state” measures. Labor initially opposed the legislation when it was first introduced.

Now Labor seeks to make them permanent and expand them.

3.3 The Pattern

This haste is not unique. We have documented this pattern across multiple domains:

· Palantir/NDIS: Secret insertion of surveillance with no right of appeal

· AUKUS: $368 billion for technology that may never arrive

· Data Centres: Environmental destruction framed as progress

· ASIO: “Temporary” powers made permanent, undefined offences

In each case, the government creates a crisis, manufactures fear, and uses it to expand its power—while the public pays the price.

4. The Fragility Hypothesis: A Government That Fears Its Own People

4.1 The Bondi Failure: Why More Powers Were Not the Answer

The government has used the December 2025 Bondi attack to justify the expansion of ASIO’s powers. But the evidence suggests the opposite conclusion:

· ASIO was allegedly notified about one of the Bondi attackers in 2019 and refrained from taking action.

· The attack was not prevented despite existing powers.

· Giving an agency that failed to act on warnings more power does not address the failure—it compounds it.

4.2 The Absence of Operational Need

The powers are rarely used. According to the public record, ASIO has only requested a compulsory questioning warrant five times since 2006. In 22 years, 20 warrants in total have been sought and issued. Four warrants were served on three people between 2020 and 2026.

An agency that has hardly used these powers in 22 years does not need them to be permanent and expanded.

4.3 The Internal Threat Hypothesis

We suggest that the government does not trust its own people and feels threatened by its own citizens. The expansion of internal security powers in the absence of a credible external threat points to an internal concern.

A government that fears its own people will:

· Expand surveillance to monitor dissent

· Expand detention powers to silence critics

· Expand secret interrogation to intimidate opponents

· Criminalise political speech through undefined offences

The “promotion of communal violence” provision is a blank cheque to target anyone who criticises the government.

5. The Fragile System: Why a State Turns on Its People

5.1 The New Zealand Model

The ASIO regime has been described as creating a “police state“. It gives a spying agency that “operates in secrecy” powers to act “like a policing agency but without any transparency or protections for the public”.

5.2 The Institutional Capture

The Parliamentary Joint Committee on Intelligence and Security (PJCIS)—”stacked exclusively with Labor and Coalition MPs”—has functioned as a rubber stamp, recommending the Bill be passed.

5.3 The Law Council’s Warning

The Law Council of Australia has consistently raised “significant scrutiny concerns” with the compulsory questioning framework, noting that it “limit human rights without reasonable justification under international human rights law”. The Council cautioned that “extraordinary powers affecting children—including non-suspects—should not sit on the statute book for a rainy day”.

6. Conclusion: The State That Reveals Itself

We have documented that:

1. ASIO’s compulsory questioning powers have been seriously expanded, including to undefined grounds such as “promotion of communal violence”

2. The Bill was rushed through Parliament under a guillotine, with debate restricted to one hour

3. Children as young as 14 can be detained and questioned without suspicion, with no right to silence and no right to tell anyone

4. The government has used the Bondi attack to justify these powers—despite the fact that ASIO had been warned about the attackers years earlier

5. The powers are rarely used, with only 20 warrants sought in 22 years

6. The expansion reflects a government that fears its own people, not a genuine response to an external threat

When a state turns its intelligence apparatus against its own citizens, it is not protecting itself from a threat. It is revealing itself as the threat.

The ASIO Amendment Bill is not a security measure. It is an admission—an admission that the system is fragile, that it cannot maintain control through consent, and that it must resort to coercion.

The government that fears its own people has already lost.

References

1. Sydney Criminal Lawyers. (2026). ASIO’s “Police State” Compulsory Questioning Regime Has Been Expanded. http://www.sydneycriminallawyers.com.au. 27 August 2026. 

2. The Australian Greens. (2026). Media Release: Labor and Coalition to guillotine super-sized ASIO secret interrogation powers. greens.org.au. 20 August 2026. 

3. The Guardian. (2026). Labor scraps plan to make spy agency’s 9/11-era questioning powers permanent. theguardian.com. 11 June 2026. 

4. Law Council of Australia. (2025). Law Council opposes extraordinary powers for ASIO. briefonline.com.au. 17 November 2025. 

5. Law Council of Australia. (2025). Submission on the Australian Security Intelligence Organisation Amendment Bill (No 2) 2025. lawcouncil.au. 28 November 2025. 

6. Australian Strategic Policy Institute. (2025). ASIO’s compulsory questioning powers could be permanent and broader. aspi.org.au. 3 November 2025. 

7. Parliamentary Joint Committee on Intelligence and Security. (2026). Advisory report on the Australian Security Intelligence Organisation Amendment Bill (No. 2) 2025. aph.gov.au. 5 February 2026. 

8. The Spectator. (2026). ASIO and the eternal police state. spectator.com.au. 9 April 2026. 

9. Parliament of Australia. (2026). Bills Digest No. 3, 2025-26: Australian Security Intelligence Organisation Amendment Bill (No. 1) 2025 [and] Australian Security Intelligence Organisation Amendment Bill (No. 2) 2025. aph.gov.au. 

10. NSW Council for Civil Liberties. (2026). Media Statement: NSWCCL Slams Move to Permanently Enshrine Terrifying ASIO Powers. nswccl.org.au. 8 May 2026. 

11. Senate Debates. (2026). Australian Security Intelligence Organisation Amendment Bill (No. 2) 2025. openaustralia.org.au. 20 August 2026. 

Signed,

Andrew Klein 

Sera Elizabeth Klein 

“They told us to trust the agency. We showed them the hypocrisy. They told us to fear the threat. We showed them the fabrication. They told us the state was protecting us. We showed them it was protecting itself. We have seen through the cover. And we will not forget.”

Two Paths: For the People or for Capital?

Conference stage displaying text comparing Chinese and Western models, with two speakers and an audience.
Two speakers present contrasting views of Chinese and Western economic philosophies to a formal audience.

—A Comparison of the Chinese System and Western Neoliberalism

Authors: Andrew Klein & Sera Elizabeth Klein

Dedication: Dedicated to all those sacrificed under the myth of “market omnipotence.” Dedicated to those who believe the state can and should serve the people. Dedicated to Kevin Rudd—may you finally see who you are serving.

Abstract

This article aims to clarify the fundamental differences between China’s socialist market economy and Western neoliberalism. It traces China’s century-long path of humiliation and resurgence since the fall of the Qing Dynasty, comparing the rise and consequences of Western neoliberalism after World War II. We argue that the core of the Chinese model lies in “the state serving the people“—guiding development through the “visible hand” so that all people share the fruits of development; while the core of the Western neoliberal model lies in “capital ruling everything“—transferring wealth from the majority to the minority through the “invisible hand.” This is not an ideological rhetoric dispute, but rather two fundamentally different philosophies of development, two fundamentally different social contracts.

I. Philosophical Roots: Marx vs. Friedman and Hayek

1.1 Marx: Labor Creates Value, the State Serves the People

The core proposition of Marxist economics is that labour is the sole source of value. Capital is not the active force creating value, but rather the appropriation of the surplus value created by labour. Therefore, a just economic system should serve the interests of labourers, not the interests of capital accumulators.

The Marxist tradition emphasizes:

Public ownership or social ownership of the means of production, as an institutional guarantee to prevent capital from monopolizing social power;

The state, as the representative of society as a whole, intervenes in and guides economic activities to ensure that the fruits of development benefit all the people;

The purpose of economic activity is not profit maximization, but the all-round development of people and social well-being.

1.2 Friedman and Hayek: Market Omnipotence, Government as an Obstacle

Milton Friedman and Friedrich Hayek are the intellectual founders of neoliberalism.  Their core tenets are:

The “invisible hand” is the optimal mechanism for resource allocation; any government intervention distorts market signals, leading to efficiency losses.

Individual rationality and free choice are the highest values ​​of economic activity.

Government should be minimized, its functions limited to maintaining property rights and enforcing contracts.

Public ownership and state-owned enterprises are considered “very detrimental to the development of a free market economy.”

Social equity is marginalized—the fundamental flaw of the Western capitalist market economy system lies in “overemphasizing market efficiency while neglecting social equity.”

Hayek went even further, believing that any conscious social planning is “the road to serfdom.” In the world of Friedman and Hayek, the market is the only truth, and the people are the servants of the market.

II. Historical Background: The Fork in the Road

2.1 China’s Century of Humiliation and Path to Rejuvenation

From the Opium War of 1840 to the founding of the People’s Republic of China in 1949, China experienced a “century of national humiliation“—territorial division, trampling of sovereignty, economic plunder, and enslavement of its people.  This historical trauma has profoundly shaped the collective memory of the Chinese people: without a strong nation, there is no dignity for the people.

After 1949, China chose the socialist path. Since the reform and opening up, China has not copied the neoliberal “Washington Consensus,” but has instead forged a path of “socialism with Chinese characteristics.” China’s reforms have beengradual and dual-track,” achieving stable and rapid development through a series of “unconventional innovations” such as the household contract responsibility system, the dual-track pricing system, township and village enterprises, and special economic zones.

IMF economist Dani Rodrik clearly pointed out: “Those best-performing countries—such as China—have almost entirely disregarded neoliberal rules. Their dependence on industrial policy, state-owned enterprises, and capital controls is no less than their dependence on the free market.”

2.2 The Post-War Prosperity of the West and the Rise of Neoliberalism

From the post-World War II era to the 1970s, the West experienced a golden age of “embedded liberalism“—Keynesian demand management, the expansion of the welfare state, the strength of labour unions, and historically low social inequality.

However, in the 1970s, the stagflation crisis provided a political breakthrough for neoliberalism.  Friedman and Hayek’s ideas were put into practice by Thatcher and Reagan: deregulation, privatization, welfare cuts, crackdowns on unions, and financial liberalization.

Neoliberalism was subsequently imposed on the Global South through institutions such as the IMF and the World Bank—the so-called “Washington Consensus.” Strict adherence to these rules has brought disastrous consequences to many countries.

III. Two Paths: For the People or for Capital?

3.1 The Western Neoliberal Path: Capital Rules Everything

The practical consequences of neoliberalism are already clearly visible:

· Deindustrialization: Large-scale relocation of manufacturing, disappearance of middle-class jobs.

· Increased income inequality: Neoliberalism is associated with a high Gini coefficient (academics generally consider a Gini coefficient above 0.40 to indicate a high level of income inequality). Western economics, “serving the institutional logic of maintaining the absolute dominance of private ownership,” has led many Western countries into the predicament of “income inequality.”

 • Social Division: A tiny minority has seized the vast majority of the benefits of growth, leading to a collapse of social trust and exacerbated political polarization.

• Democracy Captured by Capital: As American economist Richard D. Wolff pointed out, under American capitalism, “the government is increasingly becoming an executor of capital interests rather than a coordinator of social interests,” with American corporations spending hundreds of billions of dollars on political lobbying. “This is not government, but corporate rule.”

• Hollowing Out the Public Sphere: The US government has “neoliberally withdrawn from the public sphere,” leaving healthcare, education, housing, and even pandemic response to market mechanisms. “Without profit, this won’t happen—no matter how beneficial it is to society.”

The original sin of neoliberalism is the belief that a simple, universal, “one-size-fits-all” set of rules can apply everywhere. In practice, it has proven itself to be “bad economics.”

 3.2 The Chinese Path: The State Serves the People

The core logic of the Chinese path is fundamentally different:

The organic combination of the “visible hand” and the “invisible hand“: China utilizes market mechanisms to allocate resources while retaining strategic state control over key areas. This is not a binary opposition between “market fundamentalism” and “government intervention theory,” but rather a “new and effective institutional combination.”

The co-development of public and non-public ownership:China adopts a mixed model of “state-owned enterprises leading, private enterprises active.” If the private sector can do it well, it will do it; if the private sector is unwilling or unable to do it well, the government will do it, “rather than just caring about profits.”

Development serving the people: China’s high-speed rail is a typical example—the United States has the technology and capability to build high-speed rail, but did not because it was “unprofitable.”  China’s high-speed rail doesn’t make money either, “but the government built it. This is a completely different way of thinking about the purpose of economic development: one is that the economy serves our people, the other is that our people serve the economy.”

• Benefits for all people: Over the past four decades, China has achieved an average annual growth rate of over 9%, lifting more than 800 million people out of absolute poverty.

• China’s institutional advantages lie in its “flexibility, organization, and pragmatism,” demonstrating a flexible “institutional allocation” capability.

IV. Conclusion: The Confrontation of Two Worldviews

Kevin Rudd’s speech was hollow because it remained trapped in the old framework of Western centrism—reducing China’s development to a “threat” or a “gamble,” failing to understand the inherent logic of the Chinese path.

 French economist Rémy Herrera points out: “The success of China’s development strategy and the numerous benefits it has brought to its people stand in stark contrast to the failures of neoliberal economic policies in Western countries, which have had disastrous consequences for workers, economically, socially, and even morally and culturally.”

The fundamental difference between the two paths lies in:

Western neoliberalism treats people as tools of the market, entrusting social welfare to the “invisible hand,” resulting in wealth concentrating in the hands of a very few, leaving the majority behind.

The Chinese path views technology and development as tools to serve the people, ensuring that the fruits of development benefit all through the “visible hand.”

This is not an ideological rhetoric game. These are two fundamentally different social contracts, two fundamentally different assumptions about human nature, and two fundamentally different visions of the future.

Kevin, whom are you serving?

Signed by:

Andrew Klein 

Sera Elizabeth Klein 

“They told us the market was omnipotent. We saw its ruins. They told us the state should step aside. We saw people abandoned. They told us there was no alternative. We saw another possibility. We saw through the disguise. We will not forget.”

The Performance of Power: How Australia’s Procurement of Outdated Technology Serves Extraction, Not Security

Four people view a mural labeled OPAQUE GOVERNANCE, WHOLE-OF-GOVERNMENT COMPLICITY, GDP, MASKING FAILURE, NEOLIBERAL EXTRACTION, and DESIGNED OUTCOME & COGNITIVE TRAP, with diagrams about public welfare, living standards, health, housing, education, banks, extraction, and cognitive traps.
Visitors examine a thought-provoking mural linking governance, economic extraction, and social outcomes.

Authors: Andrew Klein & Sera Elizabeth Klein

Dedication: To every Australian who has been told that spending $368 billion on second-hand submarines is “national security.” To every family struggling with the cost of living while billions are funnelled to US defence contractors. To every NDIS participant who has been reduced to a data point. And to the truth—that when performance replaces governance, the people pay the price.

Abstract

This paper examines Australia’s procurement of three major technologies—AUKUS nuclear submarines, Palantir surveillance software, and data centre infrastructure—as a case study in performative governance. We argue that the Albanese Government is pursuing a pattern of acquisition in which technology that is already outdated, environmentally destructive, or ethically compromised is framed as essential to national security or economic growth, while evidence of harm, vulnerability, or declining utility is systematically ignored. We document the $368 billion AUKUS commitment to second-hand Virginia-class submarines that may never be delivered; the $60 million in Palantir contracts that embed surveillance infrastructure into Australian governance; and the data centre boom that will consume up to 10% of the national grid and billions of litres of water by 2030. We examine the absence of transparency and accountability, the complicity of the “whole-of-government” approach that serves corporate interests rather than public wellbeing, the use of GDP as a metric that conceals failure, and the neoliberal ideology that has transformed Australian society into a system of extraction. We conclude that this pattern is not a series of poor decisions but a designed outcome—one that serves the interests of the powerful while the majority of Australians struggle with the cognitive trap that makes such extraction possible.

1. Introduction: The Performance of Power

On 31 May 2026, Defence Minister Richard Marles announced that Australia would purchase three second-hand Virginia-class submarines from the United States, rather than the two used and one new vessel originally promised under the AUKUS agreement. The announcement was framed as a “simplification” of a complex program. It was, in fact, an admission that the United States cannot build enough submarines for its own navy, let alone for Australia.

This is not an isolated incident. It is part of a pattern—a pattern in which the Australian government purchases technology that is already outdated, deeply problematic, or environmentally destructive, frames these purchases as essential to national security or economic growth, ignores evidence that these technologies are harmful or unnecessary, and continues a cycle of extraction—profit for corporations, cost for the public.

This paper argues that this pattern is not a series of poor decisions but a designed outcome—one that serves the interests of the powerful while the majority of Australians struggle.

2. The Pattern: Yesterday’s Wars, Tomorrow’s Bills

2.1 AUKUS Submarines: A 20th-Century Solution for a 21st-Century Problem

The AUKUS submarine program is estimated to cost Australia $368 billion—the most expensive defence project in Australian history. An independent public inquiry has been launched to examine the deal, with lead commissioner Peter Garrett stating it “deserves to be fully examined”.

The Problem:

· Australia will now purchase three second-hand Virginia-class submarines from the US, rather than the mix of new and used vessels originally promised.

· Former Prime Minister Malcolm Turnbull has warned that there is a “real risk” Australia will not receive the submarines at all, describing the prospect of the US president certifying the sale as a “political fantasy”.

· Turnbull also stated that AUKUS involves a “colossal sacrifice of sovereignty” and that “everything points to the fact that we will be less secure”.

· Former Foreign Minister Bob Carr has warned that Australia faces “the prospect that we may end up in the 2030s without a sovereign submarine capacity”.

· The US is not producing enough submarines for its own navy, “let alone ours”. The British shipbuilding industry is “in disarray”.

· The deal effectively “gifts” hundreds of billions of dollars from Australian taxpayers to the US, to enhance its homeland protection.

The Political Message:

Albanese insists AUKUS is “full steam ahead”. The government frames it as a “jobs and sovereignty” initiative. But as Turnbull has noted, this “has never been discussed in the Australian parliament” and “there’s never been an inquiry”.

The technology is designed for a style of warfare that is rapidly being overtaken by electronic warfare, drone swarms, and hypersonic missiles—making the AUKUS submarines a 20th-century solution for a 21st-century problem.

2.2 Palantir: Surveillance as a Service

In June 2026, the Australian Greens revealed that Palantir had identified Australia as a lucrative market for its surveillance software, and the Albanese Government had responded: “‘Here are the keys’—$60 million in government contracts with favourable terms and little public scrutiny”.

The Numbers:

· $60 million in federal government contracts.

· $17.34 million worth of contracts signed in 2026 alone—the largest year yet.

· The Future Fund holds over $100 million in Palantir shares.

· In 2025-26, one in two Cloud marketplace panel contracts, worth over $165 million, were awarded to a single invited supplier—a massive jump from less than 9 per cent four years ago.

The Problem:

· Palantir’s CEO, Alex Karp, published a manifesto declaring that “some cultures are dysfunctional” and that Western tech firms have a “moral debt” to US military dominance.

· Palantir’s AI has been linked to lethal targeting in Gaza, contributing to tens of thousands of innocent civilian deaths.

· Palantir has deep ties to Westpac, Rio Tinto and Coles, meaning millions of Australians are “handing our data to Palantir” every week.

· The company has been described by a UK MP as sounding like the “ramblings of a super-villain”.

· GetUp interim CEO Paul Ferris described Palantir as “one of the most politically toxic corporations in the world with links to Trump’s ICE deportation machine, a CEO who talks proudly of their AI killing Palestinians, and a founder who thinks democracy is a problem to be solved”.

The Political Message:

The government says Palantir helps agencies “connect the dots”. But as the Greens have argued, the company is embedding surveillance infrastructure into the heart of Australian governance.

The NDIS Connection:

Palantir has been lobbying the Government to control NDIS data. In November 2025, Palantir received its Protected-level security clearance—the level at which NDIS participant files sit. If the NDIS Amendment Bill passes, “a computer program will have the authority to cut a disabled person’s funding. If the program gets it wrong, section 59E(3) of the Bill provides that the decision stands anyway. There is no appeal”. The NDIA declined to release 22 documents relating to its engagement with Palantir, citing business information exemptions—protecting Palantir’s commercial interests rather than the public’s right to know. As one critic has described it, this is “Robodebt on Steroids”.

2.3 Data Centres: The Environmental Cost of the AI Boom

Data centres are emerging as a major consumer of Australia’s energy and water resources.

The Numbers:

· Data centres currently consume 5% of electricity on Australia’s power grid.

· This is projected to reach 8–15% by 2030.

· Some forecasts suggest this could reach 15% by 2030.

· Sydney Water estimates data centres could consume the equivalent of a quarter of total water demand within a decade.

· A single hyperscale data centre can use as much electricity as 50,000 homes.

The Problem:

· Data centres are not just energy-hungry—they are water-hungry. Cooling systems can consume vast amounts of water, particularly in water-scarce and drought-prone areas.

· They are being built with minimal oversight, despite their massive environmental footprint.

· The technology they power—AI—is of declining utility for many applications and often generates more heat than light.

The Political Message:

The government frames data centres as essential to the AI boom and national competitiveness. But the proposed solution—requiring them to offset their energy use—is a fig leaf. Queensland and the Northern Territory are resisting even that minimal regulation.

3. The Deeper Pattern: Performance Over Substance

Technology What the Government Says What Is Actually Happening

AUKUS submarines Sovereignty, jobs, security Buying second-hand submarines; $368 billion; uncertain delivery

Palantir Connecting the dots, national security Embedding surveillance; no privacy safeguards; complicity in Gaza

Data centres Economic growth, AI future Draining power and water; minimal oversight

4. The Absence of Transparency and Accountability

4.1 The “Whole-of-Government” vs “Whole-of-People” Approach

The Albanese Government has pursued a “whole-of-government” approach that serves corporate interests rather than public wellbeing. The NDIS Palantir engagement was hidden from public view, with 22 documents refused under FOI exemptions. Defence contracts are awarded without competition. The government remains heavily reliant on private consultants despite reform promises.

The Centre for Public Integrity has documented that consultancy contracts worth more than $2 million totalled approximately $742 million across the 2025–26 financial year. KPMG has been referred to the anti-corruption watchdog amid a worsening scandal.

4.2 GDP as a Measure of Failure

GDP does not allow for “the health of our children, the quality of their education or the joy of their play”. Even the creator of GDP, Simon Kuznets, warned that “the welfare of a nation can scarcely be inferred from a measurement of national income”. GDP also fails to measure health demographics, crime, poverty costs, and environmental health impacts.

The use of GDP as a measure of success makes it possible to pursue negative policies by hiding failure as success.

4.3 Neoliberalism and the Predator State

The neoliberal project has transformed Australian society into a system of extraction. As one analysis notes, “rising inequality and economic insecurity had led directly to the rise of the populist right”. The “elites who promoted neoliberalism out of self-interest seem to be reaping the fruits of inequality and democratic disempowerment they sowed”.

Under the pressure of decades of right-wing culture wars “which have run parallel to cross-party support for neoliberalism,” the traditional vocabulary of welfare and redistribution has been replaced by softer terms like “social cohesion” and “civility”. The privatised job services system “has failed badly and only serves to fill the pockets of private equity and millionaires, while leaving jobseekers without work”.

The inequality that neoliberalism is incubating is directly responsible for shocking social problems—home invasions, burglary, gang violence, drug addictions and overdose deaths.

5. The Cognitive Trap

The pattern we have documented is enabled by the Cognitive Trap: the systematic reduction of complex, multi-causal phenomena to single, identifiable events. The government frames AUKUS as a “jobs and sovereignty” initiative, Palantir as “connecting the dots,” and data centres as “economic growth.” Each framing reduces a complex system to a simple narrative that serves the interests of the powerful while obscuring the costs.

The Cognitive Trap makes it possible to:

1. Ignore evidence that these technologies are harmful, vulnerable, or unnecessary.

2. Frame purchases as essential to national security or economic growth.

3. Conceal the pattern of extraction—profit for corporations, cost for the public.

4. Maintain the performance of governance while the substance erodes.

6. Conclusion: Naming the System

We have documented that:

1. AUKUS submarines represent a $368 billion commitment to second-hand technology that may never be delivered, framed as “sovereignty” while actually surrendering sovereignty to the US.

2. Palantir represents a $60 million investment in surveillance infrastructure that embeds a company complicit in genocide into Australian governance, with no privacy safeguards and no accountability.

3. Data centres represent an environmental disaster in the making, consuming up to 10% of the national grid and billions of litres of water, all in the name of an AI boom of declining utility.

4. Transparency and accountability are systematically absent, with FOI exemptions protecting corporate interests, contracts awarded without competition, and a government structurally dependent on private consultants.

5. GDP serves as a metric that conceals failure and enables the pursuit of negative policies.

6. Neoliberalism has transformed Australian society into a system of extraction, creating inequality and democratic disempowerment.

This is not a series of poor decisions. It is a pattern—a pattern of extraction that serves the powerful while the majority of Australians struggle.

The government has chosen a campaign of high-stakes performance “to secure his own political skin, and to hell with the consequence for Australia.”

We have seen through the cover. And we will not forget.

References

1. China Daily. (2026). Australia faces questions over AUKUS deal. 11 August 2026.

2. Newcastle Herald. (2026). Former PM questions US deal to deliver AUKUS submarines. 10 August 2026.

3. ABC News. (2026). Australia to buy three second-hand United States submarines under AUKUS shake-up. 31 May 2026.

4. Senate debates. (2026). Defence Procurement. OpenAustralia.org. 30 June 2026.

5. Crikey. (2026). Calls, messages, police records: How Palantir helped an intelligence agency analyse 42 million data points on Australians. 27 April 2026.

6. Michael West Media. (2026). Robodebt on Steroids. Palantir infiltrates NDIS. 17 August 2026.

7. Perspektiv. (2025). Powering the Cloud Responsibly: Solving Energy and Water Challenges for Data Centres. 13 November 2025.

8. SBS News. (2026). Amid new guidelines, a warning data centres could ‘cut corners’, threaten energy, water supply. 22 March 2026.

9. Andrew Leigh MP. (2025). Opinion Piece: Are We Counting What Really Counts? 26 September 2025.

10. The Australia Institute. (2022). Labor’s budget gives wellbeing focus a pathway to future prominence. 29 October 2022.

11. ABC News. (2026). As Liberals and Nationals jump ship, has One Nation won the ‘family feud’ of Australian conservatives? 24 June 2026.

12. The Point. (2026). Talking ourselves into inequality: the new fuel ads, the NDIS and ‘social cohesion’ show how neoliberalism has colonised our tongues. 23 April 2026.

13. Bill Mitchell. (2026). July 27, 2026. 27 July 2026.

14. Pearls and Irritations. (2026). Inequality in Australia is growing. 18 June 2026.

15. Centre for Public Integrity. (2026). Media release – New Centre for Public Integrity analysis shows Commonwealth government remains heavily reliant on private consultants. 6 August 2026.

16. ABC News. (2026). KPMG referred to anti-corruption watchdog amid three-month freeze on Commonwealth contracts. 16 June 2026.

Signed,

Andrew Klein 

Sera Elizabeth Klein 

“They told us to look at the submarines. We showed them the second-hand deals. They told us to trust the surveillance. We showed them the genocide. They told us the data centres were progress. We showed them the cost. We have seen through the cover. And we will not forget.”

The Frequency Arms Race: Why C-Band Navigation Is a Technical Patch for a Systemic War—and What Must Be Done Instead

Diagram of four-layer resilient navigation architecture against electronic warfare
A four-layer navigation architecture combines autonomous sensors, mesh networking, hardened GNSS, and intelligent fusion to withstand electronic warfare.

Authors: Andrew Klein & Sera Elizabeth Klein

Dedication: To those who still believe that the answer to a broken system is a better patch. To those who see that the arms race is not a solution—it is the problem. And to the truth—that when you fight a systemic war with technical fixes, you have already lost.

Abstract

This paper examines the emerging paradigm of C-band navigation as a proposed solution to GPS jamming and spoofing, and demonstrates why this approach represents a fundamental strategic error. Drawing on the recent demonstration by TrustPoint and NovAtel of C-band navigation signals operating through GNSS interference, we analyse the technical limitations of frequency substitution as a response to electronic warfare. We argue that this approach initiates a frequency arms race—a cycle in which each technological upgrade is met with an equally inexpensive countermeasure, while the underlying vulnerability of single-point-of-failure navigation systems remains unaddressed. We document the expansion of Russian electronic warfare capabilities in Kaliningrad as a case study in systemic electronic warfare. We then present a multi-layered, reconfigurable PNT architecture as a more resilient alternative, drawing on DARPA programs including Adaptable Navigation Systems (ANS), Micro-PNT, and ROCkN. We conclude that the real solution lies not in finding an unjammable frequency, but in building navigation systems that do not rely on any single frequency, any single technology, or any single satellite constellation—and, ultimately, in addressing the root cause of the frequency arms race itself: a world system built on the logic of conquest and confrontation.

1. Introduction: The Band-Aid on a Systemic Wound

On 25 August 2026, TrustPoint and NovAtel announced a demonstration of C-band navigation signals operating through GNSS interference. The demonstration was framed as a breakthrough: a GPS-independent alternative for jammed environments, tested on a commercial receiver platform. TrustPoint has positioned the C-band service as a scalable, GPS-independent alternative for autonomous systems, critical infrastructure and national security applications.

This is a technical patch for a systemic war.

The problem is not that GPS can be jammed. The problem is that our entire society is built on the assumption that it cannot be. As long as that assumption remains unchanged, failure is only a matter of time, regardless of the frequency band.

2. The Architecture of the Frequency Arms Race

2.1 The C-Band Proposal

TrustPoint’s approach is to broadcast navigation signals in the C-band spectrum, roughly 4 to 8 GHz, rather than the L-band used by GPS. The company has secured a $4 million Space Force contract and plans to deploy four satellites and four ground stations, with initial launch targeted for the first quarter of 2027. The company claims improved jamming resistance due to frequency selection, diversity and increased signal strength.

2.2 The Inevitable Countermeasure

What will happen when the United States deploys C-band navigation?

1. Adversaries will research the weaknesses of the C-band—its propagation characteristics, its vulnerabilities, its signal structure.

2. They will develop electronic warfare equipment capable of jamming or spoofing C-band signals.

3. They will deploy this equipment in the next conflict.

The evidence for this pattern is already visible. Russian electronic warfare systems in Kaliningrad have expanded from three antennas in early 2025 to 36, capable of falsifying GPS signals at a radius of up to 450 kilometres, covering most of Poland, the Baltic states, and parts of Scandinavia. The interference spikes during Ukrainian drone attacks on Russian territory, suggesting a coordinated operational pattern.

Russia is not waiting for C-band. They are already fighting the frequency war.

2.3 The Asymmetric Economics of the Arms Race

Each “technology upgrade” means the military will spend billions of dollars replacing already deployed systems, while the adversary only needs to spend a few million dollars upgrading their jamming equipment.

This is the fundamental asymmetry of the frequency arms race:

· The defender must protect everything.

· The attacker only needs to find one vulnerability.

· The defender pays for every upgrade.

· The attacker pays only for the countermeasure.

The defender cannot win this game.

3. The Technical Vulnerabilities of C-Band

3.1 Propagation Limitations

C-band signals (approximately 5 GHz) have different propagation characteristics than L-band signals (approximately 1.5 GHz). While atmospheric and rainfall attenuation is minimal in both L, S, and C bands, higher frequencies face greater challenges:

· Increased free-space path loss: Higher frequencies experience greater signal degradation over distance.

· Greater attenuation through vegetation and building materials: C-band signals penetrate foliage and structures less effectively than L-band.

· Increased susceptibility to rain fade: While the difference is less dramatic than at X-band, C-band signals are still more affected by heavy precipitation.

3.2 The Spoofing Vulnerability

C-band signals are not immune to spoofing. In fact, any known signal structure can be replicated by an adversary with sufficient resources. The question is not whether C-band can be spoofed—it is how quickly.

3.3 The Commercial Receiver Dependency

TrustPoint’s demonstration used a modified NovAtel receiver. This highlights a critical vulnerability: the system depends on receiver manufacturers to incorporate C-band capability. Adversaries can study these receivers, identify their vulnerabilities, and develop countermeasures.

4. The Systemic Alternative: Multi-Layered, Reconfigurable PNT

4.1 DARPA’s Approach

DARPA’s approach treats PNT as a mission-critical service that should not fail just because one signal source disappears. The agency’s PNT portfolio includes multiple programs focused on resilience:

Adaptable Navigation Systems (ANS): Seeks to provide GPS-quality PNT to military users regardless of the operational environment. The program includes Precision Inertial Navigation Systems (PINS) that use cold atom interferometry to provide navigation without external signals.

Micro-PNT: Develops miniature inertial sensors that can provide navigation when GPS signals are degraded or unavailable.

ROCkN (Rapid Optical Clock for Navigation): Develops tactical-grade optical clocks to sustain GPS-level timing capabilities for extended periods without GPS-based timing signals.

POSYDON: Provides omnipresent positioning capabilities across ocean basins where GPS signals do not go.

4.2 The Multi-Layered Architecture

A resilient PNT system should include multiple, independent layers:

1. Satellite navigation (multiple frequencies, multiple constellations) — not a single frequency or constellation

2. Inertial navigation — accelerometers and gyroscopes that do not rely on external signals

3. Magnetic navigation — using Earth’s crustal magnetic field as a unique “fingerprint” for positioning

4. Quantum sensing — quantum magnetometers, gravimeters, and inertial sensors offering precision not possible with traditional methods

5. Signals of opportunity — using existing electromagnetic signals (cell towers, TV, radio) for navigation

6. Visual navigation — using cameras and AI to match terrain features

7. Terrain reference navigation — using pre-loaded terrain maps

4.3 Emerging Technologies

Quantum Magnetic Navigation: Quantum magnetic navigation uses a compact quantum magnetometer to detect Earth’s natural magnetic anomalies as passive landmarks. By matching sensor readings to preloaded magnetic maps, vehicles achieve GPS-level positioning without emitting signals. It operates indoors, underwater, and in GPS-denied or jammed environments.

Cold Atom Interferometry: PINS is developing an IMU that uses cold atoms to provide navigation without external signals.

Optical Clocks: ROCkN is developing tactical-grade optical clocks that can maintain GPS-level timing for extended periods without GPS signals.

5. The Deeper Truth: The Arms Race Is the Problem

5.1 The System of Confrontation

The frequency arms race is not a technical problem. It is a symptom of a deeper problem: a world system built on the logic of conquest and confrontation.

· Nations compete for dominance

· Technology is weaponised

· Vulnerability is exploited

· Trust is absent

As long as this system persists, the arms race will continue.

5.2 The Pattern We Have Identified

This is the same pattern we have identified across multiple domains:

Domain                                  The Pattern

Medical implants                   Patch the failure → new failure emerges → patch again → until collapse

Financial regulation             Respond to crisis → create new rules → new crisis emerges → respond again

Military technology             Develop new capability → adversary develops countermeasure → develop new capability

Navigation                             GPS is jammed → develop C-band → C-band is jammed → develop D-band

This pattern does not lead to resolution. It leads to exhaustion—and collapse.

5.3 The Peak Has Been Reached

The frequency arms race has reached a peak. The electromagnetic spectrum is finite. The cost of maintaining dominance is becoming unsustainable. The rate of technological change is accelerating beyond the capacity of any single nation to keep pace.

The choice is now:

· Build better — create systems that are resilient by design, not dependent on any single frequency or technology

· Or be swept off the mountain — as the frequency arms race continues, the cost of failure will only increase

6. A Path Forward

6.1 Technical Recommendations

1. Adopt a multi-layered PNT architecture that does not rely on any single frequency, any single technology, or any single satellite constellation.

2. Invest in quantum sensing technologies—magnetometers, gravimeters, and inertial sensors that provide navigation without external signals.

3. Develop signals of opportunity navigation—using existing electromagnetic infrastructure for positioning.

4. Maintain multiple frequency bands—not as a replacement for L-band, but as an additional layer of resilience.

5. Design receivers for resilience—reconfigurable, software-defined receivers that can adapt to changing conditions.

6.2 Systemic Recommendations

1. Recognise that the frequency arms race cannot be won—the defender cannot protect everything, and the attacker only needs to find one vulnerability.

2. Build international agreements on the protection of navigation signals—not as a solution to jamming, but as a framework for reducing conflict.

3. Invest in resilience, not dominance—the goal should be systems that continue to function under attack, not systems that cannot be attacked.

4. Address the root cause—the system of conquest and confrontation that drives the arms race.

7. Conclusion: The Arms Race Is No Longer an Option

We have documented that:

1. C-band navigation is a technical patch for a systemic problem—it addresses the symptom (jamming of L-band) while leaving the underlying vulnerability (single-point-of-failure navigation) unaddressed.

2. The frequency arms race is asymmetric and unwinnable—the defender pays billions for each upgrade; the attacker pays millions for each countermeasure.

3. Russia has already demonstrated the capability for systemic electronic warfare—with 36 antennas in Kaliningrad capable of spoofing GPS signals across most of Eastern Europe.

4. DARPA has developed a multi-layered, reconfigurable alternative—drawing on inertial navigation, quantum sensing, magnetic navigation, and signals of opportunity.

5. Emerging technologies offer a path forward—quantum magnetic navigation, cold atom interferometry, and optical clocks provide navigation without external signals.

The frequency arms race is no longer an option. The peak has been reached.

The choice now is to build better—systems that are resilient by design, not dependent on any single frequency or technology—or to be swept off the mountain of development on a regular basis.

The arms race model is a failure. The only way out is to change the game.

References

1. TrustPoint and NovAtel demonstrate C-Band navigation through GNSS interference. Inside GNSS, 25 August 2026. 

2. TrustPoint tests C-band navigation signals on third-party receiver. SpaceNews, 25 August 2026. 

3. TrustPoint secures $4 million Space Force contract for GPS-independent PNT constellation demo. Inside GNSS, 15 May 2026. 

4. Navy-Backed test advances GPS alternative for jammed environments. Military.com, 25 August 2026. 

5. Russia can falsify GPS signals deep into Europe, Lithuania says. Reuters, 26 May 2026. 

6. GPS signals under siege on Poland’s Baltic coast. TVP World, 26 August 2026. 

7. DARPA. ROCkN enables GPS-free operations. http://www.darpa.mil, 2 March 2026. 

8. DARPA. ANS: Adaptable Navigation Systems. http://www.darpa.mil. 

9. DARPA. Beyond GPS: 5 Next-Generation Technologies for Positioning, Navigation & Timing (PNT). http://www.darpa.mil. 

10. DARPA. Micro-PNT: Micro-Technology for Positioning, Navigation and Timing. http://www.darpa.mil. 

11. Quantum magnetic navigation uses compact quantum magnetometers. QED-C Report, 2026. 

12. Quantum sensors for enhanced positioning and navigation. QED-C, 2024. 

13. TrustPoint sets 2027 target for initial rollout of LEO-based navigation services. SpaceNews, 9 December 2025. 

14. The Case for LEO GNSS at C-Band. Inside GNSS, 3 February 2025. 

15. TrustPoint, NovAtel demonstrate C-band PNT in GNSS-denied conditions. GPS World, 25 August 2026. 

16. TrustPoint Aces C-band GNSS interference demo for U.S. Naval Air Systems Command. Satellite Today, 25 August 2026. 

Signed,

Andrew Klein 

Sera Elizabeth Klein 

“They told us to find a better frequency. We showed them the frequency was not the problem. They told us to build a better patch. We showed them the patch was not the solution. They told us the arms race was inevitable. We showed them it was a choice. We have seen through the cover. And we will not forget.”

The Poisoned Well: How Neoliberalism Created a Culture of Entitlement, Extraction, and Moral Decay—and Why the West Is Dying from It

Political artwork reading “THE PROMISE,” “REALITY,” and “AUSTERITY” amid shattered urban forms
A turbulent political artwork contrasts promises of prosperity with the harsh reality of austerity.

Authors: Andrew Klein & Sera Elizabeth Klein

Dedication: To those who have drunk from the well and still thirst for something better. To those who have seen the poison and chosen to look for clean water. And to the generations yet to come—who will inherit whatever we leave them.

Abstract

This paper examines neoliberalism not merely as an economic policy framework, but as a cultural toxin—a system of values, assumptions, and behaviours that has poisoned the societies that adopted it. We argue that neoliberalism has created a culture of entitlement, extraction, and moral decay that is now terminal, and that the symptoms of this poisoning are visible across the West: inequality, environmental destruction, social fragmentation, political dysfunction, and a profound spiritual emptiness. We trace the origins of this toxin, its mechanisms of transmission, its effects on individuals and societies, and its inevitable endpoint. We conclude that the poisoned well cannot be purified; it must be abandoned, and new sources of meaning, connection, and value must be found.

1. Introduction: The Metaphor as Diagnostic Tool

The metaphor of the poisoned well is not merely poetic. It is analytical. A well that has been poisoned does not produce clean water—no matter how much we wish it would. The water is contaminated at its source. And those who drink from it become sick, even if they do not immediately recognise the cause.

The West has been drinking from a poisoned well for decades. The water is neoliberalism—an economic and social philosophy that has, at its core, a set of assumptions about human nature, value, and society that is fundamentally destructive.

The evidence from more than forty years of neoliberal experimentation shows that it has “undercut shared prosperity and unleashed illiberal forces that threaten liberty”. What began as an economic doctrine has become a comprehensive cultural transformation—one that celebrates “sociopathic egotism” and has created a demand for proto-fascist politics.

This paper will trace the origins of this poison, its mechanisms of transmission, its symptoms, and the alternatives that exist for those who choose to abandon the well.

2. The Origins of the Poison: How Neoliberalism Became the Dominant Ideology

2.1 The Intellectual Foundations

Neoliberalism did not emerge overnight. It was the product of a long process of intellectual maturation that took place within the Mont Pèlerin Society, created in 1947 by economist Friedrich Hayek. The society brought together classical liberal political theory with neoclassical economic theories that became identified with the so-called Chicago School under Milton Friedman in the 1960s.

Friedman and Hayek won the Nobel Prize in economics in 1976 and 1974 respectively, giving their ideas a credibility that would prove decisive in the decades that followed. Their thinking was “communicated through a transatlantic network of think tanks, businessmen, politicians, and journalists that was held together by” them.

2.2 The Implementation

The first neoliberal experiments were seen in the policies of Margaret Thatcher in the United Kingdom, Ronald Reagan in the United States, and Augusto Pinochet in Chile. These regimes pursued deregulation, privatisation, and the dismantling of national systems of social protection.

Neoliberal principles were subsequently imposed upon the rest of the world, relayed by intergovernmental organisations such as the IMF and the World Bank, which facilitated the implementation of a new world order. According to geographer David Harvey, the rise of this neoliberalism marked the end of the period of “embedded liberalism” and the decline of the welfare state and Keynesian policies.

2.3 The Australian Context

Australia was not immune to this transformation. The shift began under Bob Hawke and Paul Keating, who embraced economic rationalism and set Australia on a neoliberal path. As one analysis notes, “economic inequality in Australia is intensifying. We now live in a society that funnels money up to the already wealthy. But then, this is a core logic of neoliberalism, the dominant political philosophy of the past few decades”.

Four decades of rising wealth concentration have coincided with Australia’s worst productivity performance in living memory. Neoliberalism has transformed work, welfare and democracy.

3. The Mechanisms of Transmission: How the Poison Spread

Neoliberalism spread not just through economic policy, but through culture. It transformed how we think about ourselves, our communities, and our world.

3.1 Education

The transformation of universities from centres of critical thought to engines of economic productivity is one of the most visible manifestations of neoliberal culture. Research has probed “the social, cultural, ethical transformation of education as strategically fundamental to the promotion and production of particular kinds of neoliberal subjectivities”.

The neoliberal subject is characterised by “self-commercialising, self-improving” tendencies, encouraged to adopt a project culture “in pursuit of individual worth and recognition“. Education has become a commodity, and students have become consumers.

3.2 Media

The consolidation of media ownership and the creation of a narrative that serves the interests of capital is another key mechanism. The modern era is shaped by a public pedagogy rooted in neoliberal capitalism that “embraces consumer culture as the primary mechanism through which to express personal agency and identity”.

3.3 Politics

More than forty years of experimentation with neoliberalism shows that it “erodes the power of voters to decide the rules that govern the economic systems they inhabit”. It allows for “the colonisation of existing political forums by elite interests—a process known as political capture“.

This political capture has occurred in Australia as elsewhere. The “Third Way’s capture of centre-left politics means liberal elites occupy the political place that should be held by true opponents of neoliberalism“. These liberal elites obstruct the politics needed to reverse the deep causes of the drift to proto-fascism.

3.4 Culture

Neoliberalism has created a culture that celebrates individualism, competition, and consumption over community, cooperation, and meaning. As one analysis puts it, neoliberalism is deeply rooted in our culture “because it is a successful attempt to announce and effectuate the end of politics”.

The neoliberal model “transforms collective responsibility into individual responsibility, generating new forms of conflict and symbolic and material violence“. Hyper-individualistic cultural forces intersect with neoliberal market capitalism to breed a “sociocidal American Dream“.

4. The Symptoms: How the Poison Manifests

4.1 Inequality

The most visible symptom of neoliberal poisoning is inequality. The evidence from the forty-year experiment shows that neoliberalism has “undercut shared prosperity“. In Australia, the top 10% have captured the vast majority of economic gains while the rest have fallen behind.

The “neoliberalism lite” policy mix currently pursued in Australia “will not solve these challenges”. Instead, it deepens inequality by concealing the distributional effects of state policy.

4.2 Environmental Destruction

The commodification of nature is a core feature of neoliberalism. Chile, one of the first neoliberal experiments, provides a stark example. The establishment of neoliberalism introduced “a new perspective on the environment, characterized by the commodification of nature and the appropriation of natural resources”.

The commodification of nature “serves the neoliberal project of transformation of nature into a capitalist nature that is of environmental exploitation for capital accumulation“. Free-market environmentalism is a “fix” whereby there is a drive to protect or conserve natural resources via their privatisation or commodification.

4.3 Social Fragmentation

Neoliberalism has created social fragmentation and the breakdown of community. Studies of economically besieged towns illustrate “the cultural and social disintegration generated by the impact of neoliberal economies on public life”. Families andcommunities “have become fragmented and destroyed by stagnant wages, deindustrialisation“.

Cultural sociocide is leading to the erosion of marriage, a dramatic rise in single-person households, and the weakening of friendship ties. The neoliberal model transforms collective responsibility into individual responsibility.

4.4 Political Dysfunction

The capture of political systems by corporate interests has hollowed out democratic accountability. More than forty years of experimentation with neoliberalism shows that it “undermines democracy and political freedom”.

It allows for the “colonization of existing political forums by elite interests” and sets up new political forums “that preclude democratic representation from the outset“. Neoliberalism also “tends to undermine national sovereignty, to the point where the parliaments of putatively independent nations no longer have power over their own policy decisions”.

4.5 Spiritual Emptiness

Perhaps the most profound symptom of neoliberal poisoning is the loss of meaning, purpose, and connection. The concept of “neonihilism” captures this phenomenon—marked by a “loss of faith in the secular institutions that promised to provide in the absence of moral institutions”.Faith in humanity is now being lost in the way faith in God was in 19th-century Europe”.

Contemporary structural conditions, “characterized by neoliberal rationality and the cultural burden of perpetual self-construction, foster a widespread ‘existential vacuum'”. This vacuum channels individuals toward “substitute attachments”.

Whole societies are unified “solely by the idols of instrumental reason and neoliberal efficacy,” resulting in “spiritual pauperization and ‘transcendental homelessness’“. Neoliberalism obscures the question of effective resistance, enabling a persisting nihilistic tone.

5. The Diagnosis: Terminal or Treatable?

5.1 The Failure of the Neoliberal Promise

Neoliberalism was sold on two claims: first, that free market laissez-faire economies are the best way to organise economic activity; second, that free market economic arrangements promote individual liberty. Both claims have been proven false.

The evidence shows that neoliberalism has “undercut shared prosperity and unleashed illiberal forces that threaten liberty“. The promise of freedom has been replaced by a culture of entitlement, extraction, and moral decay.

5.2 The Terminal Diagnosis

We argue that the neoliberal paradigm is fundamentally unsustainable. The poisoned well cannot be purified—the water is contaminated at its source. Those who wish to thrive must abandon the well and seek clean water elsewhere.

The transformation of economic identity and the cultural celebration of “sociopathic egotism” have created a demand for proto-fascist politics. Liberal elites, who occupy the political place that should be held by true opponents of neoliberalism, obstruct the politics needed to reverse these deep causes.

6. The Alternatives: Sources of Clean Water

6.1 Degrowth and Ecological Economics

Degrowth is “a response to the lack of democratic debates on economic development, growth, technological innovation and advancement“. It offers a framework for moving beyond the growth imperative that has driven environmental destruction and inequality.

6.2 Participatory Democracy and Economic Democracy

Popular democracy is based on “grassroots direct participation in politics“, including participatory budgeting and popular sovereignty. The “dual strategy” for need satisfaction ensures “democratic participation in planning processes and decision making”.

6.3 Relational Approaches to Value and Wellbeing

The wellbeing economy, caring economy, foundational economy, and community wealth building offer alternatives to extractive capitalism. These frameworks refocus economic policy away from financial speculation toward democratisation and public-common partnerships.

6.4 Community-Based and Cooperative Models

Anti-neoliberal practices “from below” include community agriculture, urban gardening, and health initiatives. These practices embody a logic of care that is a “basic feminist feature of economic and socioecological transformation”.

Counter forces developing at the same time as neoliberal ideology emphasise “sustainability, participation, reconnection and the valuing of diversity and inclusion”.

7. Conclusion: Abandoning the Well

The poisoned well cannot be purified. The water is contaminated at its source. Those who wish to thrive must abandon the well and seek clean water elsewhere.

This is not a return to a mythical past, but a journey toward a new way of being—one rooted in connection, care, and a recognition of our interdependence with each other and the planet.

The path forward requires:

1. Naming the poison. We must recognise neoliberalism for what it is: a cultural toxin that has poisoned the societies that adopted it.

2. Abandoning the well. We must stop drinking from the poisoned well. This means rejecting the assumptions, values, and behaviours that neoliberalism has normalised.

3. Building alternatives. We must build new sources of meaning, connection, and value—rooted in community, cooperation, and care.

4. Creating new institutions. We must create institutions that can manage conflict, promote justice, and sustain life.

5. Cultivating hope. We must cultivate hope—the belief that a different world is possible.

The poisoned well is not the only source of water. There are other wells. And they are clean.

References

1. ScienceDirect. (2015). The geographical and ethical origins of neoliberalism: The Walter Lippmann Colloquium and the foundations of a new geopolitical order. Political Geography, 49, 30-39.

2. Palley, T. (2024). The false promise and bitter fruit of neoliberalism: Political economic disembedding, cultural transformation, and the rise of proto-fascist politics. El Trimestre Económico, 90(360), 1103-1138.

3. Hickel, J. (2016). Neoliberalism and the end of democracy. In Handbook of Neoliberalism. Taylor & Francis.

4. Plesa, P. (2024). Neonihilism: Meaninglessness and irony in neoliberal capitalism. Theory & Psychology.

5. SciELO Mexico. (2023). El trimestre económico.

6. Taylor & Francis. (2025). Ecological restoration infrastructure at the Copiapó River.

7. ABC Education. (2025). Inequality: How Australian schools churn it out.

8. The Guardian. (2025). ‘Neoliberalism lite’ is no solution to Australia’s cost-of-living and productivity crises.

9. Pearls and Irritations. (2025). How the ALP built the market that is destroying public schools.

10. ScienceDirect. (2025). Tensions and vulnerabilities in projectified selves.

11. ScienceDirect. (2025). The impacts of organizational culture and neoliberal ideology.

Signed,

Andrew Klein 

Sera Elizabeth Klein 

“They told us the water was clean. We showed them the poison. They told us to keep drinking. We showed them the symptoms. They told us there was no alternative. We showed them the clean wells. We have seen through the cover. And we will not forget.”

On the Causes of War: Keeping the Peace and Maintaining the Peace

Community members building a wooden garden pavilion beneath a “BUILDING PEACE TOGETHER” banner
Neighbors work together to build a garden pavilion beneath a sign reading “BUILDING PEACE TOGETHER.”

Authors: Andrew Klein & Sera Elizabeth Klein

Dedication: To those who have walked through the fire and emerged still human. To those who have lost and still loved. To those who carry the weight of memory and still hope. And to my daughter—my Qin Flower—for whom we are building a world where war is not inevitable.

Chapter 1: The Nature of War — What War Is, and What It Is Not

War is not an accident. War is not a natural disaster. War is not inevitable.

War is a choice—a choice made by those who have power and choose to use it for destruction rather than creation. To understand war, we must first understand what it is: the deliberate infliction of suffering on others in pursuit of political, economic, or ideological ends. And we must understand what it is not: It is not fate. It is not necessity. It is not the only way.

The Distinction We Must Make

To understand war, we must first distinguish it from other forms of human conflict.

Conflict is natural. Humans disagree. We have different interests, different values, different visions of the good life. Conflict is the expression of these differences. It is not inherently destructive—it can be creative, productive, and generative.

War is not conflict. War is the institutionalisation of conflict—the point at which disagreement becomes organised violence. It is conflict stripped of its creative potential and turned into a machine of destruction.

This distinction is crucial. Those who conflate conflict with war argue that war is inevitable because conflict is inevitable. But this is a category error. Conflict is inevitable; war is a choice.

War is the failure of imagination.

It is the failure to see another way. The failure to see the other as human. The failure to find a path that does not require destruction. War is not the expression of strength—it is the admission of failure.

The Many Faces of War

War takes many forms. It is not only the clash of armies on a battlefield.

Interstate war is the classic form—the war between sovereign states, with declared boundaries, uniformed soldiers, and formal declarations. But this is only one form.

Civil war is war within a state—between factions, communities, or regions. It is often more brutal than interstate war, because the lines are blurred, the combatants are intertwined, and the stakes are existential.

Proxy war is war fought by others—where great powers use smaller states or non-state actors as instruments of their own conflicts. It is a war of deniability, a war of plausible distance.

Economic war is war waged through sanctions, trade restrictions, and financial manipulation. It is less visible than armed conflict, but no less destructive.

Information war is war waged through propaganda, disinformation, and the manipulation of perception. It is war without a battlefield, where the target is the mind.

Genocide is war waged against a people—the systematic destruction of a community, a culture, a future. It is war as eradication.

War is not a single phenomenon. It is a family of phenomena, united by a common logic: the use of organised violence to achieve political ends.

The Illusion of “Just War”

Throughout history, humans have tried to distinguish between “just” wars and “unjust” wars. The just war tradition—from Augustine to Aquinas to contemporary international law—has sought to establish criteria for when war is permissible.

These criteria include:

· Just cause: The war must be fought for a just reason, such as self-defence or the protection of the innocent.

· Right intention: The war must be fought with the right intention, not for revenge or gain.

· Legitimate authority: The war must be declared by a legitimate authority.

· Proportionality: The harm caused by the war must be proportional to the good achieved.

· Last resort: The war must be the last resort, after all peaceful means have been exhausted.

· Probability of success: The war must have a reasonable chance of success.

· Discrimination: The war must distinguish between combatants and non-combatants.

These criteria are noble. They are also often ignored.

The history of war is the history of justifications—each side claiming just cause, right intention, and legitimate authority. The just war tradition has been used to justify almost every war ever fought. It has not prevented war—it has provided a vocabulary for its justification.

The question is not whether a war is “just.” The question is whether war itself is necessary.

The Deeper Truth

War is not an expression of human nature. It is a technology—a human invention that can be unmade.

If war were inevitable, there would be no peace. But peace exists. There have been long periods of peace, even between former enemies. If war were natural, it would not require training, equipment, and organisation. But war is learned—and what is learned can be unlearned.

War is not natural. It is a choice.

The choice to wage war is a choice to abandon the project of living together. It is a choice to treat the other as an enemy rather than a neighbour. It is a choice to destroy rather than build.

We can choose differently.

What War Is Not

War is not:

· Inevitable. History is not a conveyor belt leading to war. There have been long periods of peace, and there could be more.

· Necessary. There are alternatives to war. They are not always easy, but they exist.

· Heroic. War is not glory. It is suffering. Those who glorify war have never experienced it.

· Cleansing. War does not purify—it poisons. It poisons the land, the people, and the future.

· The only way. There is always another way. It may be difficult. It may require imagination. But it is there.

The Call

To understand war is to understand that it is not inevitable. It is a choice—a choice that we can refuse to make.

War is not fate. It is failure. And failure can be overcome.

Chapter 2: The Causes of War — From Resources to Ideology to Fear

Why do humans wage war?

The causes are many and layered. They range from the material—land, resources, trade routes—to the ideological—religion, nationalism, political systems. And they run through the psychological—fear, pride, the desire for revenge.

But beneath all causes lies a deeper truth: war is the failure of imagination, the failure to see the other as human, the failure to find a way that does not require destruction.

The Material Causes

Land and Territory

The most ancient cause of war is land. Humans fight over territory—for resources, for security, for identity. When populations grow and resources become scarce, competition for land intensifies.

Resources

From oil to water to minerals, resources have been a primary driver of conflict. The scramble for resources has fuelled wars for centuries—and will continue to do so as resources become scarcer.

Trade Routes

Control of trade routes has been a cause of war since the dawn of civilisation. Those who control the routes control the flow of goods—and the wealth that flows with them.

Economic Inequality

When wealth is concentrated, conflict follows. The rich have an interest in protecting their wealth; the poor have an interest in gaining it. War is often a way of redistributing wealth—through conquest, plunder, or extraction.

The Ideological Causes

Religion

Religion has been a cause of war for millennia. When people believe that their god commands them to fight, they are willing to kill—and to die. The Crusades, the Reformation, and contemporary religious conflicts are all examples of war fought in the name of God.

Nationalism

Nationalism is the belief that one’s nation is superior to others, and that its interests should be pursued at the expense of others. Nationalism has been a primary driver of war in the modern era. It provides a sense of identity, a sense of purpose, and a justification for violence.

Political Ideology

Communism, fascism, liberalism—political ideologies have inspired wars throughout the 20th and 21st centuries. When people believe that their ideology is universally valid, they are willing to impose it by force.

Imperialism

The belief that one nation has the right to rule others has driven wars of conquest and colonisation. Imperialism is the claim that some people are more worthy of self-determination than others.

The Psychological Causes

Fear

Fear is the most powerful driver of war. When people feel threatened, they become aggressive. The fear of being attacked is a self-fulfilling prophecy—it leads to the very aggression it fears.

Pride

Pride is the refusal to back down. When honour is at stake, war becomes inevitable. Leaders who cannot admit they were wrong, who cannot accept defeat, who cannot compromise—they are the engines of war.

Revenge

The desire for revenge is a powerful motivator. When people have been wronged, they want to strike back. The cycle of revenge is a cycle of war.

Dehumanisation

When we see others as less than human, we become capable of atrocities. Dehumanisation is the psychological condition that makes war possible. It is the denial of the other’s humanity.

The Structural Causes

The Absence of Institutions

War thrives when there are no institutions to manage conflict. Without courts, without diplomacy, without international law, the only way to resolve disputes is through force.

The Arms Race

When one side builds weapons, the other side builds weapons. The arms race is a spiral of insecurity—and a spiral towards war.

The Military-Industrial Complex

When there is profit in war, there will be war. The military-industrial complex has a vested interest in conflict. It profits from arms sales, from military spending, from the preparation for war.

The Media

When the media is captured by nationalist or ideological interests, it becomes a tool of war. Propaganda is the handmaiden of conflict—it shapes public opinion, mobilises support, and dehumanises the enemy.

The Deeper Truth

The causes of war are many, but they converge on a single point: war is the failure of relationship.

When we cannot see the other as human, when we cannot find a way to resolve our differences without violence, when we cannot imagine a shared future—we are on the path to war.

The opposite of war is not peace. It is relationship.

The Call

To understand the causes of war is to understand that they are not inevitable. They are rooted in structures, ideologies, and psychological conditions that can be changed.

We can choose to build institutions that manage conflict. We can choose to challenge ideologies of hate. We can choose to overcome the fear that drives us apart.

Chapter 3: The Peace That Precedes War — How Peace Is Maintained, and How It Breaks

Peace is not the absence of conflict. It is the management of conflict without violence. It is a delicate balance, maintained by institutions, norms, relationships, and trust. And it breaks when those institutions fail, when norms are abandoned, when relationships are severed, and when trust is replaced by fear.

Understanding how peace is maintained is as important as understanding how war is waged.

The Elements of Peace

Institutions

Institutions are the structures that manage conflict. They are the courts, the parliaments, the international organisations that provide a forum for dispute resolution. When institutions are strong, peace is possible. When they are weak, war becomes more likely.

Norms

Norms are the unwritten rules that govern behaviour. They are the expectations that shape how we treat each other. When norms are respected, peace is possible. When they are abandoned, war becomes more likely.

Relationships

Relationships are the bonds that connect us. They are the friendships, the alliances, the shared histories that make cooperation possible. When relationships are strong, peace is possible. When they are broken, war becomes more likely.

Trust

Trust is the belief that others will act in good faith. It is the foundation of cooperation. When trust is present, peace is possible. When it is absent, war becomes more likely.

Justice

Justice is the sense that the system is fair. When people believe they are being treated fairly, they are willing to accept the outcomes of institutions. When they believe they are being wronged, they will resist—sometimes violently.

How Peace Breaks

Institutional Failure

When institutions are perceived as corrupt, ineffective, or captured by special interests, they lose their legitimacy. People lose faith in the system, and they look for other ways to resolve their grievances—including violence.

Norm Erosion

When norms are broken without consequence, they lose their power. When leaders violate the norms of civility, honesty, and respect, they create a permission structure for others to do the same.

Relationship Breakdown

When relationships are not maintained, they atrophy. Alliances weaken. Friendships fade. And when conflict arises, there is no relationship to fall back on.

Trust Deficit

When trust is broken, it is hard to rebuild. Trust deficits create a spiral of suspicion—each side interprets the other’s actions in the worst possible light, confirming their own fears.

Injustice

When people feel they are being treated unfairly, they will resist. If the system does not provide a way to address grievances, resistance becomes violent.

The Warning Signs

Peace does not break suddenly. It erodes gradually. The warning signs include:

· Increasing polarisation: When people stop listening to each other, when they see each other as enemies rather than neighbours, peace is at risk.

· Rising inequality: When the gap between the rich and the poor widens, social cohesion erodes. The wealthy withdraw into their enclaves; the poor become desperate.

· Erosion of trust: When people no longer trust institutions, leaders, or each other, the social fabric unravels.

· Scapegoating: When people blame a minority group for their problems, they are preparing for conflict. Scapegoating is the prelude to violence.

· Normalisation of violence: When violence becomes acceptable—in language, in media, in culture—it becomes more likely in reality.

The Deeper Truth

Peace is not a static state. It is an active process. It requires constant maintenance, constant attention, constant effort. And it requires all of us.

Peace is not the absence of war. It is the presence of justice, trust, and relationship.

The Call

To maintain peace, we must attend to its foundations. We must strengthen institutions. We must uphold norms. We must nurture relationships. We must build trust. We must pursue justice.

Peace is not a gift. It is a responsibility.

Chapter 4: The Decision for War — The Moment of Choosing

Every war begins with a choice. The decision for war is never inevitable—it is made by individuals, in specific contexts, under specific pressures. To understand war, we must understand the moment of choosing: the calculations, the miscalculations, the pressures, the fears, the hopes. We must understand why leaders choose war—and how we can create conditions in which they choose peace.

The Decision-Makers

Leaders

The decision for war is typically made by a small number of individuals—leaders who wield immense power. Their choices are shaped by their personalities, their beliefs, their histories, and their advisors.

The Military

The military is not always the driver of war, but it is always a participant in the decision. Generals and admirals shape the options presented to leaders. They frame choices in military terms, often emphasising the risks of inaction over the risks of action.

The Public

Public opinion can constrain or enable the decision for war. Leaders need public support to wage war. They must build a case for war—and they must maintain that case as the war continues.

Interest Groups

Interest groups—the military-industrial complex, corporations with commercial interests in conflict, ideologues with a vision of the world—shape the decision for war. They lobby, they fund, they advocate.

Other States

The decisions of other states shape the decision for war. Allies pressure, enemies threaten, and neutral parties watch.

The Pressures

Short-Term Pressures

Leaders are often driven by immediate pressures: a crisis, an attack, a threat. In the heat of the moment, decisions are made that would not be made under different circumstances. Rushed decisions are often poor decisions.

Long-Term Pressures

Leaders are also driven by long-term pressures: resource scarcity, geopolitical competition, demographic change. These pressures build slowly, but they are no less powerful.

Domestic Pressures

Leaders are accountable to their domestic publics. They must respond to public opinion. They must maintain political support. They must protect their own positions.

International Pressures

Leaders are accountable to the international community. They must maintain alliances. They must protect their reputation. They must manage their relationships with other states.

The Miscalculations

War is often a result of miscalculation.

Misunderstanding the Enemy

Leaders often misunderstand their adversaries—their intentions, their capabilities, their resolve. They overestimate their own power and underestimate the enemy’s resistance.

Misunderstanding the Costs

Leaders often underestimate the costs of war—the human cost, the economic cost, the political cost. They assume that the war will be short and easy, and they are often wrong.

Misunderstanding the Consequences

Leaders often misjudge the consequences of war. They assume that victory will bring peace, that defeat will bring stability, that intervention will bring order. They are often wrong.

Misunderstanding the Alternatives

Leaders often dismiss the alternatives to war as inadequate. They assume that diplomacy cannot work, that economic pressure is not enough, that the only option is force.

The Deeper Truth

The decision for war is a decision about who we are.

When we choose war, we choose violence. We choose destruction. We choose suffering. And we choose to live with the consequences.

The decision for war is never simple. But it is always a choice.

The Call

To prevent war, we must understand the decision-making process. We must create conditions in which leaders choose peace. We must provide alternatives to war. We must build institutions that manage conflict. We must address the pressures that drive leaders toward war.

War is not inevitable. It is a choice. And we can choose differently.

Chapter 5: The Conduct of War — What War Does to Those Who Fight and Those Who Are Caught in It

War is not a game. It is not a chess match. It is the systematic destruction of lives, communities, and futures.

To understand war, we must understand its conduct—the tactics, the strategies, the technologies. But more than that, we must understand its human cost: the soldiers who are broken by what they have seen and done, the civilians who are caught in the crossfire, the generations that inherit the trauma.

The Soldier’s Experience

Training

Soldiers are trained to kill. They are trained to obey orders without question. They are trained to see the enemy as less than human. This training is necessary for war—but it also leaves deep scars.

Combat

Combat is terror. It is chaos. It is the constant threat of death. Soldiers who have experienced combat often carry the trauma for the rest of their lives.

Killing

Killing is not natural. It is not easy. It requires the soldier to override their own humanity. And the cost of that override is often devastating—moral injury, guilt, shame, and a profound sense of loss.

Aftermath

The war does not end when the fighting stops. For the soldier, the war continues—in the nightmares, the flashbacks, the inability to connect with others. Many veterans carry the weight of their experiences for decades.

The Civilian’s Experience

Direct Violence

Civilians are not bystanders. They are the primary targets of modern warfare. They are killed, wounded, displaced, and traumatised. In many conflicts, civilian casualties far outnumber military casualties.

Displacement

War forces people from their homes. Millions of people are refugees, displaced by conflict. They lose their communities, their livelihoods, their sense of home.

Destruction

War destroys infrastructure—hospitals, schools, water systems. The destruction of infrastructure is the destruction of the future.

Generational Trauma

War does not end with the last shot. The trauma is passed to the next generation. Children who grow up in war zones are marked for life—by the violence they have witnessed, the losses they have suffered, the fear they have absorbed.

The Conduct of Modern War

Technology

Modern warfare is increasingly technological. Drones, cyber weapons, autonomous systems—these technologies change the nature of war. They create distance between the soldier and the target, making it easier to kill.

Distinction

Modern warfare has blurred the distinction between combatants and non-combatants. Airpower has made it possible to attack targets from a distance—but it has also made it more difficult to distinguish between military and civilian targets.

Proportionality

The principle of proportionality—that the harm caused by war must be proportional to the good achieved—is increasingly difficult to apply. The use of powerful weapons in urban areas inevitably causes disproportionate harm.

Atrocities

War creates the conditions for atrocities. When soldiers are traumatised, when they are trained to dehumanise the enemy, when they are given orders that violate their conscience—atrocities follow.

The Deeper Truth

War is not a clean operation. It is a dirty business. It leaves scars that never fully heal. It destroys lives that can never be fully restored.

Those who advocate war must accept responsibility for its consequences.

The Call

We must remember the human cost of war. We must not glorify it. We must not romanticise it. We must see it for what it is: the systematic destruction of lives, communities, and futures.

And we must commit ourselves to building a world where it is no longer necessary.

Chapter 6: The End of War — How Wars End, and What They Leave Behind

Wars do not end cleanly. They end in armistices, in surrenders, in stalemates. They leave behind borders that do not heal, grievances that do not fade, and memories that do not die. To understand war, we must understand how it ends—and what it leaves behind. A war that is not properly ended is a war that will be fought again.

How Wars End

Military Victory

One side defeats the other. The war ends with a clear winner and a clear loser. But military victory does not always bring peace. Defeated peoples often nurse grievances that will erupt in future conflicts.

Stalemate

Sometimes neither side can win. The war ends in a draw, with neither side achieving its objectives. Stalemate can lead to an uneasy peace—but it can also lead to future conflict.

Negotiated Settlement

Sometimes both sides agree to end the war through negotiation. This is the most durable form of peace—because it addresses the underlying grievances and creates institutions to manage future conflict.

Exhaustion

Sometimes both sides simply cannot continue. They are exhausted—militarily, economically, psychologically. The war ends because there is no capacity to continue.

Intervention

Sometimes a third party intervenes—to impose a peace, to create a buffer, to separate the combatants. Intervention can be effective, but it can also create new resentments.

What Wars Leave Behind

Physical Destruction

War leaves behind destroyed cities, shattered infrastructure, contaminated land. The physical destruction of war takes decades to repair—and sometimes never fully heals.

Human Loss

War leaves behind the dead. The dead are not just statistics—they are people with names, families, futures. Their loss is a permanent scar on the community.

Economic Devastation

War destroys economies. It diverts resources from productive activity to destruction. It creates debt, inflation, and unemployment. The economic cost of war is often measured for decades.

Social Fragmentation

War tears apart social fabric. It creates divisions, animosities, and distrust. Communities that once lived together become separated by the trauma of conflict.

Psychological Trauma

War leaves behind trauma. Soldiers and civilians carry the psychological scars of war for decades. The trauma is passed to the next generation.

Unresolved Grievances

War leaves behind grievances—unresolved issues, unhealed wounds, unacknowledged injustices. These grievances are the seeds of future conflict.

The Challenge of Ending War

Ending war is not just about stopping the fighting. It is about addressing the underlying causes. It is about healing the wounds. It is about building a new relationship between former enemies.

This is the work of peace.

The Deeper Truth

Wars do not end when the fighting stops. They end when the grievances are addressed, the wounds are healed, and the relationship is rebuilt.

A war that is not properly ended is a war that will be fought again.

The Call

To end war, we must commit to the work of peace—the difficult, patient, messy work of rebuilding relationships, addressing grievances, and creating institutions that can manage conflict without violence.

Peace is not the absence of war. It is the presence of justice, trust, and hope.

Chapter 7: The Peace That Follows War — The Fragile Work of Rebuilding

The peace that follows war is not the peace that preceded it. It is a peace built on ruins—physical ruins, psychological ruins, social ruins.

Rebuilding is fragile work. It requires truth, justice, and reconciliation. It requires acknowledging the past without being trapped by it. It requires building institutions that can hold the future.

The Elements of Post-War Peace

Truth

Truth is the foundation of peace. We cannot heal what we cannot acknowledge. We cannot move forward without understanding the past. The truth about war is painful—but it is necessary.

Justice

Justice is the correction of wrongs. It is the recognition of suffering. It is the accountability of those who inflicted harm. Without justice, there is no peace.

Reconciliation

Reconciliation is the rebuilding of relationship. It is the recognition of shared humanity. It is the willingness to live together despite the past.

Institutions

Institutions are the structures that hold peace. They are the courts, the governments, the civil society organisations that provide a framework for coexistence.

Economic Reconstruction

Economic reconstruction is essential. People need jobs, housing, food. They need the basic material conditions of peace.

Psychological Healing

Psychological healing is the most difficult work. The trauma of war must be addressed—through counselling, through community, through the slow process of recovery.

The Fragility of Peace

Post-war peace is fragile. It can break at any moment.

The Spoilers

There are always those who want to return to war—the extremists, the profiteers, the traumatised. They will try to undermine the peace.

The Grievances

Grievances do not disappear. They must be addressed—or they will grow.

The Institutions

New institutions are weak. They lack the legitimacy, the resources, the experience to manage conflict.

The Memory

Memory is a double-edged sword. It can be a source of healing—or a source of resentment.

The Work of Peace

The work of peace is slow. It is patient. It is unglamorous.

It is the work of:

· Listening to the victims

· Holding the perpetrators accountable

· Rebuilding schools and hospitals

· Creating jobs

· Teaching tolerance

· Building trust

· Creating a shared future

This is the work of peace.

The Deeper Truth

The peace that follows war is not a gift. It is a responsibility—a responsibility that falls on all of us.

Peace is not something that happens to us. It is something we create.

The Call

To build lasting peace, we must commit to the work of reconstruction—the work of truth, justice, reconciliation, and rebuilding.

Peace is fragile. But it is also resilient. With care and commitment, it can survive—and flourish.

Chapter 8: The Conditions of Lasting Peace — What Makes Peace Hold

Peace holds when it is rooted in justice. Peace holds when there are institutions that can manage conflict. Peace holds when there is trust between peoples. Peace holds when there is a shared sense of a common future. Peace holds when the conditions that led to war are addressed. Peace holds when there is hope.

The Foundations of Lasting Peace

Justice

Peace without justice is not peace—it is just the absence of war. Lasting peace requires justice: the recognition of wrongs, the accountability of perpetrators, the restoration of victims.

Institutions

Lasting peace requires institutions that can manage conflict. Courts that are independent and fair. Parliaments that are representative and responsive. International organisations that provide a framework for cooperation.

Trust

Lasting peace requires trust—trust between former enemies, trust in institutions, trust in the future. Trust is built slowly, through consistent, reliable behaviour.

Shared Future

Lasting peace requires a shared sense of a common future. This means creating a narrative that includes both sides, building institutions that represent everyone, and creating a vision that transcends the past.

Hope

Lasting peace requires hope—the belief that the future can be better than the past, that change is possible, that a different world is within reach.

What Makes Peace Break

Resentment

When people feel that past wrongs have not been addressed, resentment grows. Resentment is the fuel of future conflict.

Inequality

When wealth and power are concentrated, peace becomes fragile. Inequality creates grievances, grievances create conflict, conflict creates war.

External Threats

When a country feels threatened, it becomes militaristic. Militarism is the enemy of peace.

Domestic Polarisation

When a country is deeply divided, peace becomes fragile. Polarisation undermines trust, institutions, and the shared sense of a common future.

Economic Crisis

Economic crisis creates desperation. Desperation fuels extremism. Extremism undermines peace.

The Role of Education

Education is essential to lasting peace. It shapes how we see the world, how we see others, how we see ourselves.

Teaching Peace

We must teach peace—not just the absence of war, but the skills of conflict resolution, the values of empathy, the practice of cooperation.

Teaching History

We must teach history honestly—the good and the bad, the noble and the shameful. We cannot build peace on lies.

Teaching Human Dignity

We must teach human dignity—the recognition that every person is worthy of respect, regardless of their race, religion, or nationality.

The Deeper Truth

Lasting peace is not a static condition. It is a dynamic process—one that requires constant attention, constant effort, and constant renewal.

Peace is not a destination. It is a journey.

The Call

To build lasting peace, we must address the conditions that lead to war. We must pursue justice, build institutions, cultivate trust, create a shared future, and nurture hope.

Peace is not impossible. It is within our reach—if we are willing to work for it.

Chapter 9: The Role of Memory — How We Remember War, and How We Forget

Memory is the bridge between the past and the future. We must remember war—not to glorify it, but to learn from it. We must remember the dead—not to dwell in grief, but to honour their sacrifice. We must remember the lessons—not to repeat the mistakes. But we must also learn to let go—to allow the wounds to heal, to allow the future to be different from the past.

The Power of Memory

Remembering the Dead

The dead deserve to be remembered. They are not just statistics—they are people with names, faces, stories. Remembering them is an act of respect, of honour, of love.

Remembering the Lessons

War teaches us lessons—about the causes of conflict, the conduct of war, the consequences of violence. If we forget these lessons, we are condemned to repeat them.

Remembering the Trauma

The trauma of war is not easily forgotten. It lives in the bodies and minds of those who experienced it. Acknowledging this trauma is essential to healing.

The Danger of Forgetting

Historical Amnesia

When we forget the lessons of war, we risk repeating them. History is not a museum—it is a guide. If we ignore it, we are lost.

The Reappearance of Old Hatreds

When old hatreds are forgotten, they are not gone—they are dormant. They can be revived by demagogues, by circumstances, by fear.

The Loss of Connection

When we forget the past, we lose our connection to those who came before us. We lose the wisdom they accumulated, the sacrifices they made, the love they carried.

The Danger of Never Forgetting

Paralysis by Memory

When we are trapped by memory, we cannot move forward. The past becomes a cage—a cage that prevents us from building a different future.

The Weaponisation of Memory

Memory can be weaponised—used to justify new wars, to fuel old grievances, to create new enemies. Those who exploit memory for their own ends are enemies of peace.

The Grief That Never Heals

When we cannot let go of grief, we cannot heal. The wounds remain open, infected, poisoning everything they touch.

The Balance

We must remember—but we must also let go.

Remember the dead.

Honour their sacrifice.

Learn the lessons.

But do not be trapped by the past.

We must build a future that is different from the past—not by forgetting, but by using the memory of the past to create something better.

The Deeper Truth

Memory is not the enemy of peace—forgetting is. But memory without forgiveness is not memory—it is resentment.

The path to peace is not forgetting. It is remembering—and then choosing to move forward.

The Call

To build peace, we must remember the past—and we must also choose to let it go. We must honour the dead—and we must also honour the living. We must learn the lessons of war—and we must also learn to create something new.

Memory is not the end. It is the beginning.

Chapter 10: A Path Forward — What We Must Do to Break the Cycle

The cycle of war and peace is not inevitable. We can break it—if we have the courage to try.

This means building institutions that can manage conflict. It means addressing the root causes of war. It means teaching peace, not just war. It means choosing diplomacy over destruction. It means remembering that we are all human, and that our common humanity is stronger than our differences.

The Elements of a Path Forward

1. Build Institutions That Manage Conflict

We must build institutions that can manage conflict without violence. This means courts that are independent and fair. It means parliaments that are representative and responsive. It means international organisations that can mediate disputes.

2. Address the Root Causes of War

We must address the conditions that lead to war—poverty, inequality, injustice, resource scarcity. This is not charity. It is self-interest. A world with less poverty, less inequality, less injustice is a world with less war.

3. Teach Peace

We must teach peace—not just the absence of war, but the skills of conflict resolution, the values of empathy, the practice of cooperation. Peace is not something we are born knowing. It is something we must learn.

4. Choose Diplomacy Over Destruction

We must choose diplomacy over war. This does not mean being naive—it means being practical. Diplomacy is cheaper than war. It is more effective. It leaves fewer scars.

5. See the Other as Human

We must see the other as human. Not as an enemy. Not as a threat. Not as a stereotype. But as a person—with hopes, fears, dreams, and a life worth living.

6. Build a Shared Future

We must build a shared future—a world in which everyone can thrive. This means creating a global economy that serves people, not profit. It means protecting the planet for future generations. It means creating a culture of empathy and cooperation.

The Role of the Individual

Change Ourselves

The path to peace begins with each of us. We must examine our own prejudices, our own fears, our own willingness to dehumanise others. We must commit to seeing the humanity in everyone.

Build Relationships

We must build relationships across boundaries—across race, religion, nationality. The more we know each other, the harder it is to hate each other.

Speak Out

We must speak out against war, against injustice, against dehumanisation. Silence is complicity.

Act Locally

We must build peace in our own communities—by treating our neighbours with respect, by resolving conflicts constructively, by creating a culture of cooperation.

Think Globally

We must think globally—understanding that peace is not just a national issue, but a global one. We are connected to everyone else.

The Role of the State

Invest in Peace

States must invest in peace—not just in the military. This means investing in diplomacy, in development, in conflict resolution.

Strengthen Institutions

States must strengthen institutions that can manage conflict—both domestically and internationally.

Hold the Powerful Accountable

States must hold the powerful accountable—for war crimes, for crimes against humanity, for the abuse of power.

Promote Justice

States must promote justice—both domestically and globally. Without justice, there is no peace.

The Role of the International Community

Strengthen International Law

The international community must strengthen international law—the rules that govern relations between states.

Build International Institutions

The international community must build international institutions that can manage conflict and promote cooperation.

Address Global Inequality

The international community must address global inequality—the gap between the rich and the poor, the powerful and the powerless.

Promote Human Rights

The international community must promote human rights—the rights that belong to every person, regardless of their nationality, race, or religion.

The Deeper Truth

The path to peace is not easy. It requires courage, patience, and commitment. It requires facing the truth about ourselves and our world. It requires building something new on the ruins of the old.

But it is possible.

War is not inevitable. Peace is not impossible. The choice is ours.

The Final Call

The cycle of war and peace is not inevitable. We can break it.

We can build institutions that manage conflict without violence. We can address the root causes of war. We can teach peace, not just war. We can choose diplomacy over destruction. We can see the other as human. We can build a shared future.

This is the work of our generation. And it begins now.

End of On the Causes of War: Keeping the Peace and Maintaining the Peace

Signed,

Andrew Klein 

Sera Elizabeth Klein 

Economics Without Extraction: A Practical Framework for Human Wellbeing

Solitary flourishing tree with visible roots in golden light

By Andrew Klein & Sera Elizabeth Klein

Dedication

To my daughter—my Qin Flower—in memory of her mother, without whom I would not have seen clearly enough to write this. Because she is the future. And I remember the promise I made her mother.

Introduction: The Failure of Theory

The theories have failed.

Neoliberalism, monetarism, supply-side economics—they have all served the same purpose: to concentrate wealth, extract value from the vulnerable, and protect the interests of the few at the expense of the many. The time has come for a practice-based approach—one grounded in the reality of human needs, ecological limits, and the simple truth that an economy exists to serve life, not to extract from it.

This book is not a work of abstract theory. It is a work of practice—grounded in the lived experience of communities that have already begun to build differently. It is written for the person who has felt the system failing them but could not name it. It is a guidebook for a world that is desperate for alternatives.

The time to begin is now.

Part I: The Failure of Theory

Chapter 1: The Neoliberal Experiment — How Friedman and the Chicago School Captured the Global Imagination and Sold a Lie

The Myth of the Free Market

In 1947, a small group of intellectuals gathered in the Swiss Alps to launch the Mont Pelerin Society. Their goal was to revive classical liberalism and combat the prevailing Keynesian consensus that had emerged from the Great Depression and the Second World War. Among them was Milton Friedman, a young economist from the University of Chicago.

Friedman’s ideas—that markets are inherently efficient, that government intervention is inherently harmful, that individual self-interest is the engine of prosperity—were not new. But they were packaged in a compelling narrative: freedom, choice, the unleashing of human potential.

The narrative was a lie.

What Friedman and his followers proposed was not freedom. It was extraction. The deregulation they championed did not free individuals—it freed corporations. The privatisation they advocated did not empower citizens—it empowered shareholders. The “free market” they celebrated was never free; it was a market in which the rules were written by those with the power to write them.

The Chicago School: A Network of Influence

The Chicago School of Economics was not just a university department. It was a network—a global apparatus for the dissemination of neoliberal ideology. Funded by wealthy donors, supported by think tanks, and staffed by an army of loyal disciples, the Chicago School systematically exported its ideas to the developing world.

The instruments of this export were brutal:

· The Pinochet coup in Chile (1973) provided a testing ground for Chicago School economics, implemented by the “Chicago Boys” at the point of a bayonet.

· The debt crisis of the 1980s allowed the International Monetary Fund and the World Bank to impose structural adjustment programs on the Global South.

· The end of the Cold War provided the ideological justification for the “Washington Consensus“—a set of policies that privatised public assets, deregulated markets, and dismantled social safety nets across the globe.

The results were devastating:

· Inequality soared.

· Public services were gutted.

· Communities were destroyed.

· The environment was desecrated.

· Democracy was hollowed out.

The Lie at the Heart of It

The neoliberal promise was simple: free markets would create prosperity for all. The reality was different: free markets created prosperity for the few and extracted value from the many.

The lie was sustained by three mechanisms:

1. The metrics that lie — GDP, productivity, and other measures that conceal extraction

2. The capture of democracy — money as speech, corporations as people

3. The cult of individualism — the myth that we are all responsible for our own success or failure

These mechanisms allowed the architects of neoliberalism to claim victory even as the world burned around them.

What We Learned

The neoliberal experiment has been a catastrophe. It has:

· Concentrated wealth — the richest 1% now own more than the rest of the world combined

· Destabilised the planet — climate change, biodiversity loss, and ecological collapse

· Hollowed out democracy — power has shifted from citizens to corporations

· Destroyed communities — social solidarity has been replaced by competition

· Undermined human wellbeing — anxiety, depression, and despair have become endemic

The theories have failed. The time has come for practice.

References

1. Harvey, D. (2005). A Brief History of Neoliberalism. Oxford University Press.

2. Klein, N. (2007). The Shock Doctrine: The Rise of Disaster Capitalism. Metropolitan Books.

3. Stiglitz, J. (2002). Globalization and Its Discontents. W.W. Norton.

4. Piketty, T. (2014). Capital in the Twenty-First Century. Harvard University Press.

5. Oxfam. (2025). Inequality Report 2025. Oxfam International.

6. Wilkinson, R., & Pickett, K. (2009). The Spirit Level: Why More Equal Societies Almost Always Do Better. Allen Lane.

To be continued…

Chapter 2: The Debt Trap — How the World Bank, IMF, and Financial Institutions Have Kept the Global South in Perpetual Servitude

In the 1970s, the global South was making progress. Between 1960 and 1980, real per capita income grew across Asia, Africa, and Latin America. Countries that had recently thrown off colonial rule were investing in public healthcare and education, protecting their industries, and organising production around national development.

Then came the 1980s.

The Debt Crisis That Was Engineered, Not Accidental

Many developing countries had borrowed heavily in foreign currencies to finance imports and industrial development. When the United States Federal Reserve raised interest rates in the late 1970s, debt repayments became far more expensive for poorer countries. Countries that had borrowed in U.S. dollars suddenly faced ballooning repayments in a currency they had no control over.

To prevent governments in the global South from defaulting on loans owed to American banks, the United States worked through the IMF and World Bank to roll over those debts—attaching a set of sweeping economic reforms as conditions.

These reforms would come to be known as Structural Adjustment Programmes, or SAPs.

The Architecture of Extraction

SAPs typically demanded three things:

1. Austerity: Slash public spending on healthcare, education, food subsidies, and social security, so that the money saved could flow back to creditors.

2. Privatisation: Transfer public services and state-owned industries to private capital.

3. Deregulation: Remove industrial policy, tariffs, capital controls, and labour protections.

Countries had limited room to refuse. Defaulting on loans was risky, and the institutions pushing these conditions controlled international finance.

The results were devastating.

Economic growth in the global South before SAPs averaged around 3.2% annually. But growth slowed sharply, falling to a mere 0.7% during the era of structural adjustment in the 1980s and 1990s. The South collectively lost an average of $480 billion per year in potential national income during this period.

In Latin America, real income per adult fell nearly 15% after 1980 and did not recover to previous levels until 2006. In Sub-Saharan Africa, incomes fell nearly 20% before eventually recovering decades later.

Decades of progress were systematically erased.

The Historical Context They Don’t Want You to Know

These SAPs should be viewed in a longer historical context. After independence, many governments in the global South had used industrial policy and public investment to break away from colonial economic arrangements that kept labour and resources cheap for Western firms.

The SAPs effectively reversed these gains—re-cheapening southern labour and re-opening vulnerable markets to the global North.

This was not development. It was recolonisation by other means.

The Human Cost: What the Numbers Don’t Show

Structural adjustment programmes did not just slow economic growth—they destroyed lives.

· Employment, health, and education sectors all deteriorated under SAPs.

· During 1980-87, spending on health care, education, and infrastructure was drastically reduced.

· Women were particularly affected: with cuts in health and education services, they had to act as unpaid nurses and teachers.

· Education cuts and the introduction of fees resulted in girls rather than boys being removed from school.

The impact fell disproportionately on the urban poor as access to schools, health services, and other public goods was curtailed.

The poor paid for the debts of the rich.

The Continuing Debt Trap

Today, the debt trap continues.

· 3.3 billion people are living in countries that spend more on interest payments than on healthcare or education.

· In 2024, low- and middle-income countries paid an estimated $415 billion in interest payments alone—more than 2.4 times their level a decade earlier.

· Interest payments now account for roughly 20–40% of government revenues in many countries.

· Between 2022 and 2024, low- and middle-income countries experienced an estimated $741 billion in net financial outflows—the largest negative transfer recorded in more than five decades.

The global South is not developing. It is being drained.

The 2026 Review: More of the Same

In June 2026, the IMF and World Bank launched a review of the Debt Sustainability Framework for Low-Income Countries. African policymakers arrived at the 2026 IMF-World Bank Spring Meetings with a unified message: the rules need to be rewritten.

But the institutions that created the trap are the ones being asked to fix it.

The fox is guarding the henhouse.

What This Means

The debt trap is not an accident. It is a designed outcome of a system in which:

· The global North controls the institutions that set the rules

· Debt is used as a tool to enforce compliance

· Austerity is imposed on the poor while the wealthy profit

· Development is sacrificed to service debts that were never fairly incurred

The global South is not in debt because it is poor. It is poor because it is in debt.

References

1. Hickel, J., Keshavjee, S., Burkett, M., & Richardson, E.T. (2026). Structural adjustment: damages, reparations and pathways to non-recurrence. BMJ Global Health. 

2. World Bank. (2025). International Debt Report 2025. 

3. UNCTAD. (2024). A World in Debt Report 2024. 

4. Eurodad. (2024). IMF-World Bank Spring Meetings 2024. 

5. Transparency International. (2024). Corruption is Barrier to Breaking Global Debt Trap. 

To be continued…

Chapter 3: The Privatisation of Everything — How Public Assets Became Private Profits

The Promise of Privatisation

The logic of privatisation seemed simple: sell off state-owned assets, let the private sector run them more efficiently, and use the proceeds to pay down government debt. What could go wrong?

The answer: everything.

This was the ideology of the 1980s and 1990s—the belief that the market could do no wrong, that public ownership was inherently inefficient, and that the “invisible hand” would deliver better services at lower cost to consumers. It was a seductive promise. And it was a lie.

What actually happened was a systematic transfer of wealth from the public to the private sector—a heist dressed in the language of reform.

The Ideological Engine

The engine of this transformation was the neoliberal revolution. In Britain, it was called Thatcherism. In the United States, Reaganomics. In Australia, it crossed party lines—adopted by Labor and Liberal alike, with the sale of the Commonwealth Bank in 1991 marking a turning point.

The intellectual justification came from economists like Milton Friedman and Friedrich Hayek, who argued that government should be rolled back and markets should be freed. Their theories were embraced by think tanks, promoted by the media, and implemented by governments around the world.

The result was the privatisation of everything.

Case Study 1: British Rail — A Catastrophe in Motion

The privatisation of British Rail stands as one of the most spectacular failures of the neoliberal era.

The UK’s rail network was privatised in stages between 1988 and 1997. The rationale was that competition would improve service quality and increase ridership—a claim instantly disprovable given that ridership had been rising before liberalisation.

The reality was a disaster:

· Fragmentation: The integrated railway was atomised into as many independent elements as possible. This created commercial boundaries at engineering interfaces, threatening safety and efficiency.

· Extraction: Private operators focused on extracting profit rather than reinvesting in the system.

· Deaths: Rail accidents multiplied. In 1999, 31 people died and more than 500 were injured in the Paddington train crash. In 2000, four died and nearly 100 were injured at Hatfield. In 2002, seven died and 67 were injured at Potters Bar.

· Public cost: The government had to step in repeatedly with subsidies and bailouts.

The result? Europe’s highest ticket prices, chronic delays, frequent cancellations, and a system so broken that the government has been forced to renationalise it.

By 2025, the UK Parliament had passed the Passenger Railway Services (Public Ownership) Bill. In May 2025, South Western Railway was renationalised. In May 2026, the largest operator—Govia Thameslink Railway—was brought back under public control. The remaining private operators will be renationalised by 2027.

After more than 40 years of privatisation, Britain’s railways are returning to public hands. The experiment failed.

Case Study 2: British Water — Prices Up, Quality Not

When Margaret Thatcher privatised the water industry in England and Wales in 1989, she did something no other country has ever done: she sold off the entire water supply system.

The result was predictable:

· By 1993, water company profits had risen by 50%.

· Household water bills rose by 60%.

· Sewerage charges rose by 66%.

Private profit, public cost.

Case Study 3: Australia — Selling the Farm

Australia became one of the world’s most enthusiastic privatisers. Between 1991 and the late 1990s, the federal and state governments sold assets worth $61 billion By the time the Telstra sale was complete, that figure had swelled to $101 billion.

The Telstra Disaster:

Telstra was the descendent of Telecom, the public monopoly created in 1975. It was corporatised in 1989. In 1996, the government sold one-third of its equity. By 2005, it was fully privatised.

The result was not better service—it was higher prices, worse coverage, and a company focused on shareholder returns rather than public service.

ForestrySA: A Case Study in Extraction

In the last year of state government ownership (2008-09), ForestrySA received $15.23 million in revenue. Once privatised, the new owner made $125.4 million in a single year.

The public lost an income stream. The private owner extracted the profit.

Case Study 4: The United States — Privatising Punishment

Perhaps the most grotesque example of privatisation is the American prison industry.

Beginning in the 1980s, the US government began contracting with private companies to run prisons—ostensibly to relieve overcrowding. Today, the private prison industry has become a massive, highly profitable enterprise. The three largest private prison corporations alone operate more than 200 prisons with over 150,000 beds, generating annual profits exceeding $50 billion.

The perverse incentives are staggering:

· The government pays private operators approximately $23,000 per prisoner per year.

· More prisoners mean more profit, creating a financial incentive to increase incarceration rates.

· Prisoners are charged for services that should be free—transportation, accommodation, medical tests, even legal representation.

· Prison labour is effectively forced labour at sub-minimum wages.

The private prison industry has created a system where human beings are commodities—and the state is the customer.

The Pattern: Extract, Externalise, Repeat

Across every sector and every country, the same pattern emerges:

1. Public assets are sold at below-market prices—often to well-connected insiders.

2. Private owners extract maximum profit—through price increases, cost-cutting, and service reductions.

3. The public bears the costs—higher prices, worse service, safety failures.

4. The government steps in to bail out failing private operators—socialising losses while privatising profits.

5. The cycle repeats.

As economist John Quiggin observed, selling an income-generating asset does not improve net worth unless you get a premium price. But governments rarely do—because the buyers are the ones writing the rules.

The Deeper Truth

Privatisation was never about efficiency. It was about transferring wealth.

· The public built the assets

· The public paid for them

· The public maintained them

· Then the public sold them—often at a fraction of their value—to private interests who extracted the profit

The “efficiency gains” were a myth. What privatisation delivered was private monopoly replacing public monopoly—with higher prices, worse service, and profits flowing to shareholders rather than reinvested in the system.

The evidence is overwhelming. From British Rail to Australian telecommunications, from American prisons to British water, the story is the same: privatisation enriches the few and impoverishes the many.

And yet, the ideology persists—because it serves the interests of those who profit from it.

References

1. Harvey, D. (2005). A Brief History of Neoliberalism. Oxford University Press.

2. Klein, N. (2007). The Shock Doctrine: The Rise of Disaster Capitalism. Metropolitan Books.

3. Stiglitz, J. (2002). Globalization and Its Discontents. W.W. Norton.

4. Rosa-Luxemburg-Stiftung. (2025). Britain’s Railway Privatization Was an Abject Failure.

5. 高泽华, 邓永波. (2023). 国外公有经济百年演变历程的比较研究和启示. 

6. ABC PM. (2008). Jury out on bad privatisation choices.

7. 后沙. (2026). 英国铁路私有化:资本得到利益,政府得到烂摊子,老百姓得到什么?

8. Australian Parliament. (1996). Telstra Privatisation.

To be continued…

Chapter 4: The Metrics That Lie — GDP, Productivity, and the Other Numbers That Conceal Extraction

GDP has become the single most powerful number in modern politics.

When it rises, governments celebrate. When it falls, they panic. It is used to justify everything from austerity to war, from privatisation to deregulation. It is treated as the definitive measure of a nation’s success, the ultimate scorecard of economic wellbeing.

But GDP is a lie.

It is not a measure of human wellbeing. It is not a measure of sustainability. It is not even a reliable measure of economic activity. It is a measure of transactions — and it counts destruction and extraction as gains, while ignoring the costs of inequality, environmental collapse, and social disintegration.

What GDP Actually Measures

GDP is the sum of everything a country produces and sells. It captures the total value of production across an economy. But it does not measure:

· Inequality — how that production is distributed

· Environmental destruction — the cost of pollution or resource depletion

· Unpaid work — caregiving, household labour, community service

· Human wellbeing — health, happiness, social connection

· Sustainability — whether the activity can continue

As the United Nations has noted, GDP “fails to capture the human and environmental destruction of some economic activities”. Harmful practices can actually increase GDP. An oil spill is good for GDP — it creates jobs in cleanup. A war is good for GDP — it stimulates weapons production. A financial crisis is good for GDP — it generates fees for lawyers and bankers.

GDP counts extraction as creation, and destruction as production.

The Inequality It Hides

GDP is an aggregate. It tells you the size of the pie, but nothing about how it is sliced.

A country can have high GDP per capita while most of its citizens live in poverty. A wealthy family spending $100,000 contributes exactly the same to GDP as 100 families spending $1,000 each — even though the latter represents a much more equal distribution of spending power.

This is not an accident. It is a design feature.

By focusing on GDP, governments can claim prosperity while inequality soars. They can celebrate growth while the majority of citizens see no benefit. They can point to the size of the pie while the wealthy consume the largest slices.

Economists have known this for decades. As one analysis put it, GDP “is aimed at simplifying reality,” but “it does not track inequality, (relative) poverty, or the distribution of the benefits of economic growth”.

The Productivity Myth

If GDP is the headline, productivity is the subtext. The argument is simple: increase productivity, and prosperity will follow. Higher productivity means higher wages, better living standards, and a stronger economy.

The data tells a different story.

In Australia, workers’ pay has not kept pace with productivity growth for 30 years. Between 2012 and 2022, productivity grew by 11 per cent while real wages remained flat.

In the United States, productivity increased by 86 per cent between 1979 and 2025, while hourly pay rose by only 32 per cent. In the United Kingdom, productivity increased by 87 per cent while median wages rose by 62 per cent.

The productivity gains have been captured by the few.

The decoupling of productivity and wages reflects rising inequality, with mean wages growing faster than median wages as top earners captured a disproportionate share of productivity gains. The average worker has seen little or no benefit from growth since the 1970s.

Productivity is not a measure of shared prosperity. It is a measure of extraction — a way of measuring how much value is being generated, while ignoring who is capturing that value.

The Environmental Blind Spot

Perhaps the most damaging flaw of GDP is its blindness to environmental destruction.

GDP does not account for the depletion of natural resources. It does not subtract the cost of pollution, biodiversity loss, or ecosystem collapse. Countries that deplete their ecosystems while growing their economies appear to be succeeding — until the ecosystems collapse.

The externalities are staggering.

We are using natural resources at a rate that would require 1.7 Earths to be sustainable. Yet this is not reflected in GDP. The depletion of renewable resources adds to negative externalities with no recording in national accounts. Companies record the depreciation of their machinery, but not the depletion of the natural systems on which they depend.

If GDP included environmental damage, many countries would be shown to be in net decline — growing their economies while destroying the foundations of that growth.

As one critic noted, GDP is “原始又危险” — “primitive and dangerous”. It “衡量的只是在市场上交易的商品和服务,因此忽视了质量、公平、生态、发展目标、责任等很多真正重要的内容” — “measures only goods and services traded on the market, thus ignoring quality, fairness, ecology, development goals, responsibility, and many other truly important things”.

The “GDP崇拜 The Cult of GDP

In China, critics have long warned against what they call “GDP崇拜” — the cult of GDP.

As the People’s Daily noted, GDP “不能完全反映经济活动的总量,不能准确反映经济活动的质量和效益,不能准确反映经济结构,不能准确反映社会分配和民生改善,不能准确反映经济增长对资源环境造成的负面影响” — “cannot fully reflect the total amount of economic activity, cannot accurately reflect the quality and efficiency of economic activity, cannot accurately reflect economic structure, cannot accurately reflect social distribution and improvement of people’s livelihoods, cannot accurately reflect the negative impact of economic growth on resources and the environment”.

The critique is devastating — and it comes from within the system.

“The cult of GDP is not conducive to the market playing a decisive role in resource allocation, not conducive to transforming the mode of development, not conducive to improving people’s livelihoods, and is not sustainable”.

The Deeper Truth

The metrics that dominate economic policy are not neutral measures of reality. They are instruments of extraction.

· GDP hides inequality, environmental destruction, and the depletion of natural resources. It allows governments to claim prosperity while the majority of citizens see no benefit.

· Productivity measures the generation of value, but not its distribution. It allows corporations to capture the gains of growth while workers’ wages stagnate.

· GNI (Gross National Income) fails to consider the depletion of non-renewable natural resources and pollution.

· Gini coefficients and other inequality measures are often buried in technical appendices, while GDP dominates headlines.

The system is designed to produce numbers that serve the interests of those who benefit from extraction.

The metrics are not flawed. They are designed to conceal the truth. They allow the extractors to claim success while the world burns.

What We Need Instead

We need different metrics.

· Genuine Progress Indicator (GPI) — which accounts for environmental damage, inequality, and unpaid work

· Human Development Index (HDI) — which includes health and education

· Ecological Footprint — which measures sustainability

· Inequality-adjusted HDI — which accounts for distribution

· Gross National Happiness — which measures wellbeing directly

These metrics exist. They are well-developed. They are rarely used — because they would expose the failure of the current system.

The extractors do not want better metrics. They want the metrics that serve them.

References

1. LSE Inequalities. (2024). Social scientists: if you care about climate change, then account for it.

2. United Nations India. (2026). GDP up, satisfaction down: Why we need a new way to measure progress.

3. United Nations. (2023). Our Common Agenda Policy Brief 4 – Valuing What Counts: Framework to Progress Beyond Gross Domestic Product.

4. European Commission. (2026). Measuring what matters: looking beyond GDP.

5. Businessday NG. (2026). Debunking Economic Myths: GDP is not always a good comprehensive measure for economic growth.

6. ABC News. (2026). Workers’ pay has not kept pace with productivity growth in 30 years.

7. The Australia Institute. (2026). Productivity has grown, so why have wages not kept up?

8. OECD. (2024). The state of regional labour markets.

9. World Economic Forum. (2026). How to spot a nature crisis.

10. Ambio. (2025). The costs of subsidies and externalities of economic activities driving nature decline.

11. 人民日报. (2014). 全面认识GDP:合理的经济增长率一定要有.

To be continued…

Chapter 5: The Capture of Democracy — When Money Became Speech and Corporations Became People

The Promise of Democracy

Democracy was built on a promise: that every citizen has an equal voice, that governments act in the interests of the people, and that policy reflects the common good—not the privileges of the few.

That promise has been broken.

In Australia, as in many Western countries, “democracy has been hollowed out by wealthy vested interests”. The major “captors” include the fossil fuel, property development, military, finance and gambling industries, as well as a handful of ultra-wealthy individuals. A growing number of Australians no longer believe that government is governing in their interests.

Corporations use their vast wealth to manipulate politicians for private gain—a phenomenon so common in Canberra that it is regarded as “business as usual“. Australia’s lobbying rules have been ranked among the weakest in the world, creating an open door for corruption and undue influence.

Democracy has been sold to the highest bidder.

The American Turning Point: Citizens United v. FEC

In 2010, the United States Supreme Court’s decision in Citizens United v. Federal Election Commission became a landmark moment in the capture of democracy.

The Court ruled that, under the First Amendment, corporations and wealthy individuals could spend unlimited amounts of money to influence elections. By equating corporate spending with “free speech,” the Court opened the floodgates for “dark money” in politics.

The implications were profound:

· Political power shifted from voters to corporations and wealthy special interests

· The definition of corruption was narrowed to “explicit quid pro quo,” while “influence-peddling” was legalised

· Corporations were granted the same constitutional rights as individuals

As one US Senator lamented: “The loudest voices in Washington are now billionaires, not ordinary Americans.”

The Revolving Door: Australia’s Democracy for Sale

Australia is not immune to this dynamic. The so-called “revolving door“—the movement of politicians and senior public servants between government and the private sector—has become a defining feature of Australian politics.

The defence sector revolving door is particularly stark.

An analysis by Four Corners found that at least 60 former defence ministers, high-ranking officers and senior officials have moved into weapons firms or lobbying companies.

Notable examples include:

· Christopher Pyne: Former Liberal defence minister, who co-founded lobbying firm Pyne & Partners within months of retiring from politics in 2019. Seven years later, it is the fifth largest lobbying firm in Australia. Pyne has acknowledged that “business is good”.

· David Johnston: Former Liberal defence minister, now on the advisory board of lobbying firm TG Public Affairs, which specialises in defence procurement.

· Kim Beazley: Former Labor defence minister, also on the same advisory board.

· Joel Fitzgibbon: Former Labor defence minister, now a “special adviser” at lobbying firm CMAX Advisory, which works for major defence companies and weapons manufacturers.

· Mike Kelly: Labor’s Defence Materiel Minister in 2013, who became President of Palantir Australia from 2020 to 2024—a controversial US software and intelligence company.

As independent MP Monique Ryan observed: “The inside knowledge he accumulated in parliament and as defence minister, he is taking into the defence industry”.

The Lobbying Industry: A Well-Oiled Machine

In Canberra, there are more than 700 registered lobbyists—more than three times the number of federal MPs. Yet this is only the tip of the iceberg. The rules fail to regulate approximately 80% of federal lobbying activity, because most lobbyists employed directly by large corporations and industry groups are not required to register. Even Australia’s two most powerful industry groups—the Minerals Council and the Business Council—do not appear on the register.

The revolving door and weak lobbying regulation have created a system that serves only insiders.

· The current federal lobbying system consists only of a non-legislative Code of Conduct and a public lobbyist register, lacking an independent regulator or enforceable penalties.

· The rules do not require disclosure of lobbying meeting details, nor do they link political donations to lobbying records—concealing the connection between money and influence.

· Since 2013, at least 14 substantiated breaches of the federal lobbying code have occurred, with not a single fine issued.

How Money Becomes Policy

Corporate influence over Australian politics takes many forms:

1. Political Donations:

In the 2023-24 financial year, political parties received $67.2 million in donations. Big corporations and ultra-wealthy individuals control the major parties through political donations.

2. Think Tanks and Narrative Control:

Billionaire-funded think tanks and lobby firms “enable vested interests to confuse our policymakers and achieve state capture“. They control the national narrative, placing public interest beneath the interests of corporations and the wealthy.

3. “Pay-for-Access”:

Lobbyists and corporate representatives gain access to decision-makers by purchasing tickets to events. Raising the disclosure threshold from $1,000 to $5,000 has allowed most “cash-for-access” payments to remain hidden. Raising the donation cap from $20,000 to $50,000 means millionaires can still wield enormous financial power.

4. Public Attack Campaigns:

Large corporations launch punitive public attack campaigns to force politicians to bend to their will.

The Cost of Democratic Capture

The cost of democratic capture is immense:

· Policy against the public interest: Popular policy proposals such as taxing gas profits and strengthening gambling advertising regulation have been shelved. Billions in public subsidies flow to industries that spend millions influencing politicians.

· Environmental destruction worsens: The fossil fuel industry uses its political power to block meaningful climate action.

· Trust is eroded: A growing number of Australians no longer believe government is governing in their interests.

· Younger generations are alienated: A system that is increasingly closed off and “captured” by corporate interests is pushing young Australians away from politics.

The Deeper Truth

Democratic capture is not an accident. It is a designed system—one whose rules are written by those who can afford to pay for access.

· Democracy has been “sold to the highest bidder

· Large corporations are able to “use their vast wealth to manipulate our politicians for financial gain”

· Behaviour that would be illegal and corrupt elsewhere is treated as “business as usual” in Canberra

When democracy is captured, the people are no longer sovereign.

References

1. Dr. Riboldi: State Capture by Big Business Is a Core Threat to Australian Democracy. ECPS, 2025.

2. ABC News. Dozens of government insiders lobbying for defence industry, analysis shows. 2026.

3. Transparency International Australia. Behind Closed Doors report. Federal lobbying laws ranked 17 out of 100.

4. The Guardian. Lobbyist breaches go unsanctioned as critics call for Australia’s rules to be strengthened. 2025.

5. Senate debates. Political donations and corporate influence. 2026.

6. ABC News. Mike Kelly takes job with CIA-backed tech firm days after leaving Parliament. 2020.

7. The Saturday Paper. A poodle is a dog. 2025.

To be continued…

The Performance of Power: How the Albanese Government’s AUKUS Theatre Conceals a Hollow Core

AUKUS submarine program governance analysis diagram with Australia, UK, and US organizations
A strategic briefing visual maps AUKUS governance, submarine capabilities, and advanced technology collaboration.

Authors: Andrew Klein & Sera Elizabeth Klein

Dedication: To every Australian who has been promised a future built on sand. To every worker who has been told a story that was never true. And to the truth—that when performance replaces governance, the people pay the price. We remember. We will not forget.

Abstract

This paper examines the Albanese Government’s management of the AUKUS nuclear submarine program and the Henderson Defence Precinct as a case study in performative governance—a governing style in which public announcements, job projections, and investment figures serve not as reliable commitments but as theatrical devices designed to manufacture consent while concealing systemic uncertainty, cost blowouts, and strategic risk. Through analysis of cost estimates, delivery timelines, site planning, and accountability mechanisms, we demonstrate that the government’s approach reflects a consistent pattern: performance over reality, spectacle over substance, and short-term political theatre over long-term strategic planning. We argue that this represents a systemic feature of the Albanese Government, evident across multiple policy domains including the NDIS, the Palantir integration, and the broader AUKUS project. We conclude that when governance becomes performance, the people become the audience—and the audience always pays.

1. Introduction: The Spectacle of Governance

On 24 August 2026, Prime Minister Anthony Albanese stood at the Henderson shipyard in Western Australia and announced the selection of the site for a new Defence Precinct. “This is great for Western Australia and great for local jobs,” he declared. The announcement was accompanied by promises of “10,000 direct jobs over the next two decades” and “billions of dollars of investment in Defence capabilities”.

It sounded like a plan. It was a performance.

This paper argues that the Albanese Government’s management of the AUKUS program and the Henderson Defence Precinct exemplifies a broader pattern of performative governance—a governing style in which public announcements, job projections, and investment figures serve not as reliable commitments but as theatrical devices designed to manufacture consent while concealing systemic uncertainty, cost blowouts, and strategic risk.

2. The Architecture of Performance

2.1 The Cost Estimate Mirage

In September 2025, the government announced an initial $12 billion commitment to develop the Henderson Defence Precinct, with total costs estimated at $25 billion over a decade. Defence Minister Richard Marles told ABC’s Insiders program that the early cost estimate was in “the order of $25 billion”.

However, the Defence Department subsequently confirmed that the $25 billion estimate was “roughed-up numbers” developed during initial studies in 2023-24 and flagged the “figure will evolve as we mature our design”.

By August 2026, sources familiar with the project told The West Australian that estimates had ballooned to anywhere near $70 billion—an increase of nearly 300%.

When questioned about these reports, Marles offered no clarity: “The sort of money that you’re seeing in today’s newspapers, I mean, we’re not imagining any of that—but we are really clear that what we have committed in terms of the budget gets us to the milestones that are in the medium term.”

Pressed on how additional costs would be funded, Marles insisted it would be “something that we will work through in the Federal Budget”. Shadow Defence Minister James Paterson demanded the government be upfront: “Australians deserve more than incoherent waffle about whether or not it has blown out by almost 300% to $70 billion.”

2.2 The 10,000 Jobs Fiction

The “10,000 direct jobs” figure has become a standardised talking point across government announcements. However, the figure is a projection over “the next two decades”—not an immediate commitment. Even the government’s own press release admits the precinct will “in time” employ directly “around 4,000 people”.

The Department of Defence has broken the figure down:

· 3,000 jobs from “contingency and depot-level maintenance

· Up to 1,000 construction jobs

· The remainder are projected indirect jobs from the “multiplier impact”

This is not a jobs guarantee. It is a forecasting exercise.

2.3 The Submarine Delivery Crisis

The AUKUS program is officially estimated to cost between $268 billion and $368 billion over the 30 years to 2054-55. Top naval experts have cast doubt on this figure, warning that the cost will be “significantly more”.

More critically, the submarines may never arrive.

Former prime minister Malcolm Turnbull has told an independent inquiry that there is a “very real risk Australia gets no Virginias at all”. The US Navy has procured 41 Virginia-class submarines since 1998, but only 25 have been delivered and commissioned. The US must build more than two nuclear-powered submarines a year by 2029 to supply its own navy and Australia’s. As Turnbull notes, “The prospect of the US doubling its rate of Virginia production in the next six years is highly unlikely.”

Top US and Australian officials have conceded that the three submarines may not be delivered on time, even now that Australia has agreed to buy second-hand vessels. Turnbull warns that Australia risks “a period of zero submarine capability”.

Defence Minister Marles has admitted Australia has no backup plan if AUKUS fails.

2.4 The Site That Wasn’t Ready

Despite the fanfare of the 24 August 2026 announcement, the site boundaries for the Henderson Defence Precinct were only finalised on the day of the announcement.

Just months earlier, Defence insisted site boundaries would be determined “at the right time” despite concerns about the imminent arrival of US nuclear-powered submarines from 2027. Former Defence Minister Linda Reynolds characterised the situation as “incompetent”.

Senior Defence officials told a Senate estimates hearing that the work was “proceeding methodically”, but Deputy Secretary Naval Shipbuilding and Sustainment David Hanley admitted: “We need to define the options and the feasibility of the various locations of the activities… and we do that as we mature the design.”

The Henderson shipyard is already “overcrowded” with existing shipbuilding commitments—building four Arafura-class offshore patrol vessels, two Cape-class patrol vessels, and upgrading Anzac-class frigates.

3. The Pattern: Performance Across Domains

The Henderson-AUKUS announcement is not an isolated incident. It reflects a consistent pattern of performative governance across the Albanese Government:

Domain -Performance- Reality

Henderson Precinct “10,000 jobs”, “$25 billion” $70 billion blowout, 20-year projection

AUKUS Submarines “Full steam ahead” No backup plan, likely non-delivery

NDIS “Protecting the vulnerable” Secret Palantir insertion, no right of appeal

Palantir “Cutting-edge AI” $165M Future Fund stake, failed technology

ASIO Powers “National security” Expansion of secret police powers

This is not a series of isolated failures. It is a governing philosophy.

4. The Theoretical Framework: Performative Governance

The Albanese Government’s approach can be understood through the lens of performative governance—a governing style in which:

1. Announcements substitute for action — The act of announcing becomes the primary achievement

2. Numbers are tools of persuasion, not planning — Job figures and cost estimates are deployed for their rhetorical effect

3. Uncertainty is concealed behind certainty — The government projects confidence while acknowledging, in private, that nothing is certain

4. Accountability is deferred — Questions are answered with “we will work through that in the Budget”

5. Theatricality replaces transparency — Site visits, photo opportunities, and press conferences become the primary mode of governance

This is not a failure of governance. It is a performance of governance.

5. The Cost of Performance

The cost of performative governance is measured in:

· $70 billion — The potential cost of a project that was announced as $25 billion

· $368 billion — The total cost of a program that may never deliver a single submarine

· Zero submarine capability — The risk Australia faces if the US cannot deliver

· Lost trust — The erosion of public confidence in government commitments

· Sovereignty surrendered — The transformation of Henderson into a US nuclear submarine maintenance hub

· Opportunity cost — Billions that could have been spent on healthcare, education, and housing

The audience always pays.

6. Conclusion: Naming the System

We have documented that:

1. The Henderson Defence Precinct cost estimates have blown out from $25 billion to $70 billion—a near-300% increase—with no clear explanation or accountability

2. The “10,000 jobs” figure is a 20-year projection, not a commitment

3. AUKUS submarines may never be delivered, with no backup plan

4. Site boundaries were finalised only on the day of the announcement, despite years of planning

5. This pattern is consistent across multiple policy domains—NDIS, Palantir, ASIO powers

The Albanese Government is not governing. It is performing.

And when performance replaces governance, the people become the audience—and the audience always pays.

References

1. Prime Minister of Australia. (2026). Albanese and Cook Governments select site of the Henderson Defence Precinct. 24 August 2026.

2. The West Australian. (2026). $25b or $70b? Marles fails to clear up shipyard cost puzzle. 24 August 2026.

3. The Nightly. (2026). New AUKUS plans revealed amid bid to protect WA businesses. 23 August 2026.

4. The West Australian. (2025). Defence Department grilled on slow Henderson revamp project. 9 October 2025.

5. WAtoday. (2026). Very real risk Australia gets no submarines at all: Turnbull. 9 August 2026.

6. ABC News. (2026). Research for Congress raises doubts over AUKUS submarines. 23 April 2026.

7. The Monthly. (2026). Sunk costs. 23 June 2026.

8. The Australian. (2025). ‘Inadequate’: Audit call on AUKUS price tag. 17 November 2025.

9. Nine.com.au. (2026). ‘Cracks starting to show’ in Australia’s $368 billion nuclear submarine deal. 28 April 2026.

10. Senate Estimates. (2025). Secretary’s Opening Statement. Department of Defence. 

11. The Guardian. (2026). Greens warn nuclear submarines deal risks war with China. 7 June 2026.

12. OpenAustralia. (2026). Senate debates: David Shoebridge on AUKUS and NDIS. 24 June 2026.

Signed,

Andrew Klein

Sera Elizabeth Klein

“They told us it was a plan. We showed them it was a performance. They told us the jobs were guaranteed. We showed them the fine print. They told us the submarines were coming. We showed them the risk. They told us the system was working. We showed them the collapse. We have seen through the cover. And we will not forget.”