By Denis Hay
Description
Who does government really serve? Do they work for you, big donors, or no one at all? Explore why the free market can’t replace public good.
Introduction: When the Government Stopped Listening
“We elect them to serve us, but somehow, they end up serving someone else.”
Picture of suburban Melbourne in the mid-1980s. Joanne, a nurse and single mum, could afford rent, groceries, and the occasional holiday. Her child attended a public school, her job was secure, and public transportation ran like clockwork. Today, her daughter works the same job, but she’s drowning in HECS debt, battling rising rent, and can’t afford childcare.
What changed?
In short, who does the government serve? Is it still the people, or has that loyalty shifted to donors, lobbyists, and markets? And what does it mean when a government shrinks its own responsibilities, letting the market decide our fate? In a democracy, we must always ask: Who does government really serve?
Problem: The Vanishing Public Interest
A Government for the People – Once
Australia wasn’t always this way. From the 1940s to the 1970s, we built public housing, invested in infrastructure, created Medicare, and made tertiary education free. The idea was simple: a government working for the people.
Public money, created by our currency-sovereign federal government, was used to build a fairer society. No one asked, “How will we pay for it?” because they understood what we’ve forgotten: a sovereign government doesn’t need to tax to spend – it creates the currency.
The Neoliberal Pivot
Enter the 1980s, marked by the rise of neoliberalism in Australia. Markets were seen as more efficient than governments. Labor and Liberal alike embraced deregulation, privatisation, and austerity. The public interest became a corporate asset to be sold.
From Qantas to electricity grids, from the Commonwealth Bank to public transport, assets were privatised. Regulation weakened. Taxes on the rich dropped. Wage growth stalled. The result? Public life deteriorated.
Who Benefits When Government Serves Donors?
Quote: “The market knows best.”
Markets know best how to generate profit, not fairness. When governments shrink and markets take over, people lose.
Let’s follow Jason, a 27-year-old aged care worker in Brisbane. His job is essential, but his pay is low. The aged care facility where he works is privately run. The government subsidises the operator, but doesn’t regulate how the money is used.
Jason sees corners cut daily. Cheap food. Under-staffing. Elder neglect. He speaks up but is ignored. “We’re not here to change the system,” his manager tells him. “We’re here to follow the budget.”
When government contracts are designed to help private providers, and not people like Jason, who is the government really working for?
Donors and the Revolving Door
Mining companies, banks, and private health insurers donate millions. And they get returns.
• Fossil fuel subsidies: over $11 billion annually
• Negative gearing: benefits property investors, drives housing prices.
• Supermarket duopolies: allowed to dominate despite price gouging.
Decisions made behind closed doors often serve the interests of the powerful. Ordinary Australians are left with token gestures.
Conservative Contradictions: Critical but Dependent
Many conservative voices advocate for small government, arguing that state intervention is wasteful or oppressive. Yet, these same critics often rely on government services daily:
• Driving on public roads
• Using public hospitals and emergency services
• Receiving help from the aged pensions and public education
The contradiction is rarely addressed. While criticising the size and role of the government, they still depend on what it provides. It’s not a small government they want; it’s a government that only serves them. This disconnect exposes a central question at the heart of Australia’s political crisis: who does government really serve, its citizens, its donors, or itself?
Building a Government Working for the People
Story: When Government Did Work
In the 1970s, Gough Whitlam’s government doubled public housing, made universities free, and introduced Medibank. It wasn’t perfect, but it was bold. And it changed lives.
Today, we can do the same – if we remember Australia’s monetary sovereignty. The federal government issues the currency. It can fund universal services, build housing, and guarantee employment without “running out of money.”
What Needs to Happen
1. Ban political donations from corporations and lobbyists.
2. Reverse privatisation of essential services like energy, water, and transport.
3. Reinvest public money into people-focused programs, not corporate handouts.
4. Introduce a federal Job Guarantee, ensuring everyone who wants a job has one at a living wage.
5. Educate the public about Australia’s dollar sovereignty, replacing the false household-budget analogy.
6. Ensure policies reflect a government working for the people, not just profit.
Global Examples
• Norway’s oil wealth funds a sovereign wealth fund for citizens.
• Finland and Germany offer free higher education.
• Costa Rica abolished its military and invested in education and health.
But to do so, we must confront the fundamental question: who does government really serve, the people, or those with wealth and influence?
Australia could lead in social democracy – if we choose to.
Summary: A Fork in the Road
Australians face a choice:
• Keep shrinking government, leaving vital services to market whims and corporate donors.
• Or demand a return to a government working for the people – a government that uses its currency-issuing power to build a just society.
This is not a matter of affordability. It is a matter of political will.
Q&A Section
Q1: Doesn’t smaller government mean more freedom?
Only if you’re rich, for most, a small government means fewer protections, weaker services, and more personal risk.
Q2: Can’t the private sector do it better?
Not when profit is prioritised over people. Markets cut corners. Public services aim to serve everyone.
Q3: How can I push for change?
• Vote for independents and parties not captured by donors.
• Support public ownership campaigns.
• Educate others about Australia’s monetary sovereignty.
Call to Action
Have you or someone you know struggled because the government serves the powerful, not the people? Share your story below.
If you found this article insightful, explore more on political reform and Australia’s monetary sovereignty at Social Justice Australia.
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Let’s keep asking the vital question: Who does government really serve, and how can we ensure it works for the people?
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This article was originally published on Social Justice Australia
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