Corporate greed is putting Australians in crisis

Anz and Qantas prove that democracy itself is at risk when institutional greed surveillance of justice and equality Carl Rhodes.

This month, the Australian Securities and Investments Commission (ASIC) searched a record -breaking $ 240 million penalty from him Anz BankThe largest watched by the regulator.

Reason? Anz committed an unfair act to money. The list is amazing. False reporting contains customers lies and wages to the dead about interest rates.

It wasn’t a bandit event. The abuse, chapters, and many layers of leadership. Asic chair Joe Longo He didn’t crop the words. There was anz “He betrayed the trust of the Australians.”

The penalty was not the only milestone of Anz in 2025. The bank proudly in May announced The profit increased by 16% to $ 3,642 million and recorded half -year revenue. Outgoing CEO Shaye elliot precursory he “A great way to finish”.

Great for who, can be asked.

Avarice and aggression

Anz is not alone. Another corporate giant, Qantaswith record financial results, he followed a similar orbit with registration penalties.

Last month, airline fined 90 million dollars for violating Fair Labor Law When they terminated the employment of more than 1,800 place personnel in 2020 illegally. For such a violation, it was the greatest civilian punishment so far.

Federal court Justice Michael Lee Identified Qantas’s approach to industrial relations “Aggressive”also comment:

“

Just a week after the federal court was fined by the Federal Court, Qantas announced $ 1.6 billion profit28% increase in the previous year. Qantas’s share price quickly reached the highest level of all time.

It can be left to a chance that such a company can reach such a record -breaking way. Recommends one mold in two.

Vile Maxim

Anz and Qantas cases open questions to the extent to which the Australian corporate culture has become saturated, to borrow from Justice Lee, Avarice: Greed, ignoring the welfare of justice and others. Sometimes this secretly leads to illegal or unethical behavior. At other times, it results in an open stroke within the letter of law.

In both cases, the dominant idea is that the enterprise can obtain and obtain maximum financial value in a wider way from customers and the public, regardless of the consequences of others.

But is this really capitalism that Australia wants?

These cases are a canary in the coal substance, the warning of the Australian version Financial times columnist Martin Wolf calling “Democratic Crisis capitalism. “ When companies use force, democracy itself is at risk when companies use force – to capture a great share of national welfare – legal and not -.

In a democracy, people are the ultimate authority and they should serve the society in which they are part of the economy, even though they have responsibilities of businesses and investors. When this order is reversed and commercial interests are dominant, the crisis emerges.

Like Man smithThe father of capitalism warned:

“For ourselves, nothing for all and other people seems to be the vile maximum of the masters of humanity in every age of the world.”

In a real democracy, commercial activity should be managed and regulated to promote fair distribution, social harmony and common welfare to follow this vile and selfish maximum.

The price of inequality

. crisis Democratic capitalism is not abstract. Increased economic inequality, increasing economic insecurity and shrinking in a middle class manifests itself. This weakness, conditions This anti-democratic authoritarian populism fuel. We saw this in the United States and Europe. Australia is not immune.

Inequality once formed the images of poverty and poverty. These problems are still very real, but in recent years, inequality in Australia, by crawling social ladder, as an increasing share of the nation presence It is sequered by less and less people on top.

Inequality in today’s Australia is a middle class problem. Even when they are employed in good educated and good jobs, they are no longer real for more young people. The same demography questioned what they can do now get enough money Having children.

“Disappeared“The share of the reserve, which he once enjoyed from middle classes, is eroded than the richer households, and the gap between the middle and poorest households narrows.

If we avoid the fate of other democracies struggling with inequality and increasing populism, we must demand more than business leaders, politicians, regulators and ourselves. Registration revenues and share prices are not symptoms of a healthy economy with record fines – these are a warning.

The real test of Australian capitalism is whether it can provide widely shared prosperity, reconstruct the trust and renew the promise of a fair going for everyone.

https://www.youtube.com/watch?v=wccj13sfmao

Carl Rhodes is a professor of business and community at Sydney Technology University. A few wrote book On the relationship between liberal democracy and contemporary capitalism. You can follow it on x/twitter @Profcarlrhodes.

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