Public shaming is fast becoming Australia’s last and only weapon against the monopolies that dominate the major economic sectors.
This final redoubt of policymakers is developing out of desperation, not a plan.
It began in 2017 with the launch of the Banking Royal Commission. That exercise delivered a cleanout of corruption and compensation for victims but little structural change outside of the investment advice segment.
Next up was the war-profiteering gas cartel. In late 2022, the cartel was subjected to a political campaign of “demonisation” that has led to it containing its gouging within politically accepted guidelines.
However, little structural reform has transpired despite a spaghetti bowl of new rules.
2023 gave us Qantas and the demise of the rorting leprechaun, frog-marched into parliament, pounded by sharemarkets, and pursued by media.
Again, there is little structural change.
2024 has opened up with a new campaign of political persecution aimed at greedflating supermarkets.
Judging by the number of sales items spontaneously appearing at my local Coles, it will have some effect.
But, once more, there is no hope of substantive reform.
These examples have largely been a political process of shaming firms and their executives. The latter component appears to be the key to how effective the method is. Executives change work business practices more when their positions and personal wealth are threatened.
Is this good? Not really.
The process of public shaming is intrinsically populist.
Not in the wrong interpretation of the word often bandied about by the same gouging executives.
In the accurate sense, a process that pretends to be of, and for, the little man but, in reality, provides a short-term salve while enabling the gouge to continue long-term.
This means we see brief outlets for public anger, a few scapegoats and price adjustments, but no reform to restructure markets and crush the gouge for good.
The conveyor belt of corporate psychopaths is inexhaustible. Given most are narcissists, they probably even enjoy the opprobrium.
Nothing will change until we constrain monopolies with appropriate incentives, competition reforms, or the heavy hand of the state.
