You won't catch me disavowing capitalism.
Not only does our capitalist system put food on my table and a roof over my head, but history proves that capitalism is — by and large — an efficient and effective economic system.
But it sure isn't perfect; not even close. And it's essential we have the press to highlight the problems, so we can fix them.
Let me explain…
Capitalism works through incentives. And only if risk is rewarded will people risk enough time and money to continually improve society. Before I look at the pitfalls of capitalism, let's look at how it can work to make our lives better.
It was while working for one of the giant pharmaceutical companies (much-maligned by anti-capitalists) that Sir David Jack and his team invented salbutamol, more commonly known as Ventolin. As anyone who loves an asthmatic will know, this drug has the power to give asthmatics their life back, allowing them to partake in almost any activity like a healthy person.
Fast forward to 2015, and — like it or not — capitalism is replacing an unaccountable, outdated and monopolistic taxi system with so-called "ridesharing". The simple move by Uber to allow passengers and drivers to rate each other gives everyone an incentive to behave. This is of real benefit to many women who can now travel alone with the confidence that their driver has been actively judged (and approved of) by women before them, and remains incentivised to continue behaving with respect.
Yet despite these positive developments, it's impossible to deny the potential for capitalism to lead to unconscionable exploitation. The joint investigation by Fairfax and 4Corners that alleged "systemic underpayment of wages and the doctoring of payroll records," by 7-Eleven franchisees, is a perfect example of this. Whether encouraged by head office, or limited entirely to franchisees, this kind of exploitation is in the DNA of our capitalist system, and must be guarded against with regulation.
Regulation isn't enough
Of course, as the 7-Eleven debacle shows, regulations themselves are often ineffective. Even now, it is the company itself that has taken the lead in appointing a former regulator to review the issues, and compensate workers accordingly. This shows that it wasn't just the legislation enshrining a minimum wage that did the job: It was also pressure from the free press.
The truth is that the only reason we're addressing the problem of exploited 7-Eleven workers is that the ABC and Fairfax criticised the company in public. And journalistic criticism of government is just as important.
To take just one example, consider the nature of political donations. Put simply, many politicians receive significant donations from mining companies that wish to exploit our shared resources, or property developers that want approval for a new building.
Without a free press to shine a light on these cosy relationships, the public would have no idea that some politicians are incentivised to represent the interests of mining companies, or property developers, not just their constituents.
