In a socialist country, the state owns the means of production. The aim of socialism is to end private property and create a more equal economy where the working class have control. Under socialism, the state is seen as the representative of the working class. So essentially, in a socialist country, everything is owned by the government.
When people think of Australia they often think of kangaroos and digeridoos. Ok… but they also often think of the high standard of living and good quality of life. Australians are well-off by global standards. However, many people don’t know much about the Australian economy. So, could Australia be described as a socialist country? Definity not, and here’s why…
1. Australia Has A Capitalist Economy
A first reason why Australia is not a socialist country is because it has a capitalist economy.
Socialism is an economic model in which the means of production is controlled by the workers. Within a socialist country, the government is seen the representative of the working class and so the economy is commanded by the state. Essentially, in a socialist country, all property and businesses are owned by the government.
Australia is not a socialist country because its economy is run along capitalist principles. People in Australia can own private property and run their own companies. They are free to set-up businesses and keep the profits they make. The country has a free market economy – meaning the government only takes limited measures to regulate businesses and people’s economic activities.
People in Australia can own private property. This is very different to socialist countries where private property is abolished, and everything is collectively owned. In socialist countries the economy is entirely managed by the government. However, in Australia, people are free to own property, and businesses, and this is a key reason why it is not a socialist country.
2. Australia Has A Free Labour Market
A second reason why Australia is not a socialist country is because it has a free labour market.
In socialist countries, people cannot choose where they work. As the economy is directed by the state, the government dictates how the labour market functions. Wages are also set by the government in socialist countries. Socialist countries cannot have a free labour market or else the state loses control of one of the key functions of the economy.
In Australia, people can freely choose where they work. The country has an open labour market and there is very little government interference. Australian people can study and train in the industries they are interested in. They are then free to apply for any job they wish. On the other side, companies are free to hire the people they deem most qualified for the job.
Another factor of Australia’s labour market that shows the country is not socialist is that wages are set by the market, not by the government. Workers bargain individually, or collectively, for wages and employers are free to determine how much they wish to pay for a particular role. This is very different in socialist countries.
3. There Are Few Nationalised Industries In Australia
A third reason why Australia is not a socialist state is because the country only has some nationalised companies.
A company being nationalised means it is owned by the government. An industry that is nationalised means all the companies within an entire economic sector are state owned. In socialist countries, all industries are nationalised – there are no private companies.
Australia is not a socialist country because the majority of the economy is privately owned. Almost all of the businesses in Australia are owned by the people who run them, or by shareholders. This is very different to a socialist country. Australia does have some nationalised companies, such as Australia Post and the Australia Rail Track Cooperation, however, these make up only a small part of the economy.
In socialist states every business is nationalized. It is clear Australia is not a socialist country because it has only very few parts of the economy that are nationalized.
4. The Country Does Not Have A State-Controlled Finance Sector
An important reason why Australia is not a socialist country is because the state does not control the financial sector.
In socialist countries, the financial sector is controlled by the government. This is because the entire economy is state run. Socialist countries do not have independent banks or financial institutions. People in socialist countries have very limited options for where they can save, invest, or borrow. There is no competition within the financial market in a socialist country.
Australia is not a socialist country because its financial sector is free from government control. There are many banks in Australia – all of which are privately owned. These banks, as well as lending agencies, brokerage firms and insurance companies, compete to attract customers. People in Australia can choose where they keep their money, as well as who they bank with and who they borrow or lend from. There is limited government regulation of the financial sector in Australia.
The freedom and competition within the Australian financial sector is a major reason why the country is not socialist.
5. Private Companies Run Utilities And Public Services In Australia
Another reason why Australia is not a socialist country is because utilities and public services are not entirely state owned.
Under socialism, all areas of the economy are run by the state. This includes utilities, such as electricity, water, gas, and tele-communications. Public services, such as trains, the postal network, airlines, healthcare, and education are also entirely government owned. There is no competition, or private companies, operating in the utilities or services sectors in socialist countries.
Australia is a federal nation, so there are differences between states and territories. However, the vast majority of utilities and public services in Australia are ran by private companies. In the 1990s, many states in Australia sold their state-owned assets in order to reduce their debt burdens. This only increased the role of the private sector in utilities and public services in Australia.
The fact that key public services and utilities in Australia are ran by private businesses, and not by the government, is a clear indication that Australia is not a socialist state.
6. The Country Is A Democracy
A major reason why Australia is not a socialist country is because it is a democracy.
Although socialism is an economic model, not a political one, a key factor of all socialist states throughout history is that they have not been democracies. The government controls the entire economy in a socialist country. In order to do this, it must also exercise extensive control over the population. There is technically nothing stopping there being a fully socialist democracy – there just has never been one.
Australia is a democracy. People in Australia vote regularly in elections and select the leaders and political parties they want to run the country. When the Australian public becomes dissatisfied with a government, it can remove it through the ballot box. Politicians in Australia are accountable to the people. The political system in the country is transparent and has built in mechanisms to protect its democracy.
One reason why Australia is not a socialist country is because it has a long history of democratic governance.
7. Australia Has A Free Press And Independent Judiciary
A final reason why Australia is not a socialist country is because there is an independent judiciary and a free press.
As we’ve said, in order to control the entire economy, the government of socialist countries have always also exercised control over the lives of their citizens. There has never been a socialist country with a free press. Socialist countries have also lacked freedoms of speech, assembly, and association. The legal system within socialist countries lacks independence, with the government often becoming directly involved in both civil and criminal legal cases.
Australia is one of the freest countries in the world. People in Australia enjoy freedom of speech, press, assembly, and association. Newspapers, television broadcasters, and websites in Australia can hold the government to account. Australian people can also protest for or against causes they believe in and be associated with organisations they choose.
The legal system in Australia is independent of the government. Australians have legal protections, including against being arbitrary detained, as well as from torture and capital punishment.
The freedoms Australians enjoy, as well as the lack of government involvement in the legal system, is a major reason why the country is not socialist.