Australian Egalitarian Movement :: Offering a Socialist Political Alternative

Australian Egalitarian Movement


Home > Major Policies > The AEM's Egalitarian Economy


Home Page

Our Mission

About the AEM

Our Major Policies
and Explanations

Questions & Answers

Current Affairs

Join the AEM
FREE Membership

Contact Us





Egalitarianism -
The AEM's Egalitarian Economy

The economy of the AEM's Egalitarian society is completely different to the capitalist economy. It is also much simpler and easy for everybody to understand. It also costs the society tens of billions of dollars less (annually) to manage. The major reasons for this are because there will be....

  • No stratified wage structure.
  • Everybody works for the one employer (i.e. the state).
  • No income tax.
  • No GST (goods and services tax).
  • No private ownership of companies or shares.
  • No inflation associated with domestic renewable products and services.
  • No banks (other than the state bank).
  • No credit.
  • No interest on saving or investment schemes.
  • No inheritance.

See below for an explanation about the main features of the AEM's Egalitarian economy. As you will discover, the savings created by the AEM's Egalitarian economy represent only the beginning of the savings that are created by becoming an Egalitarian society. This alone makes the change to Egalitarianism an economically rational choice, but becoming an Egalitarian society also serves to rid our society of almost all social problems. The resulting culture will be something that you will be happy and proud to pass on to your children (unlike our contemporary capitalist rat race which only going to become more and more severe).  

Overview - No Income Tax

The profits from all businesses (and not taxes) are used to finance social services, industry, research and development, national and international projects, national security, wages and even children's pocket money, and all other expenses that are incurred in the process of managing the society.

This one policy immediately stops billions of Australian dollars being wasted annually upon determining how much tax needs to be paid, collecting tax, checking income tax statements, and catching tax cheats.  

State Ownership of All Businesses / Everybody Works for the State

In the AEM's society, the state will own all Australian businesses, and the profits derived from these businesses go back to the state. The combined profits from all businesses provide the nation's income.

Because the state owns all businesses, everyone works for the state. The AEM's Egalitarian society also allows people to undertake personal projects or to pursue various quests, which can't be classified as jobs. See our 'Going Off the Rails' web page for more details.


All full-time workers receive the same pay. This wage will always be enough to live upon comfortably, because all people who administer the AEM's Egalitarian state, and their family members, receive the same wage as everyone else.

One can also work part-time, which will usually require one to live at a lesser standard of living.  

Wages are not affected by increases or decreases in the funding of various social services, or by whether or not the nation has had a good year or a bad year. What does fluctuate in relation to these things is the money left over after all expenses are paid.

All Goods and Services are Bought or Rented From the State 

This policy is partly derived from the fact that the Egalitarian state owns all businesses, and therefore one has little choice but to only buy or rent from the state. However, if you have read our 'The Prevention of Corruption, Overcharging, Black-Markets, Stealing Money, Blackmail, Confidence Artists, Protection Rackets, Organized Crime, Rip-Offs, Illegal Immigration, and Black Money' web page, you will see that it will also be impossible to buy or sell goods and services from anybody else for the reasons expressed in the title of this web page.

Citizens do buy goods and services that can't be re-used such as food, entertainment, alcohol, professional services, electricity, clothes, toiletries, and personal items such as photographs or the materials for home-made items.

Homes can be rented or bought from the state, but buying a home costs the same as renting that home until retirement. Rents will be quite cheep and in time we believe that most people will come to realise that they don't need to buy their homes. Those citizens who already own their own homes can keep them, unless they choose to sell to the state. Those citizens that are currently paying off their homes may be required to continue paying them off because they have already committed that money to international lenders. 

Other re-usable products, such as cars, televisions, furniture, jet-skies, and many children toys, are generally rented from the state as we need them. Because these items are rented from the state, it is the state's responsibility to repair or replace them when they break.

Generally, in most product lines, older goods are cheaper to rent than newer goods, although not always (e.g. art, antiques, higher quality products). See the next section to see why renting common items (e.g. houses, cars) will be almost unnoticed in your daily lives.

No Indirect or Goods and Services Tax (GST)

Currently, you pay a GST on the goods and services you purchase because democratic-capitalist governments need to extract taxes from each good or service that is sold by thousands of different companies. In the AEM's Egalitarian society, all goods and services are bought or rented from the state, and therefore the whole profit is like tax because it goes to the state. Therefore, adding a tax, which costs a fortune to administer, becomes unnecessary.

No Inflation Associated with Renewable Domestic Products and Services

Domestically, two main things drive inflation. First, wage rises drive inflation because they increase the costs of production and services. In the AEM's Egalitarian society, wages don't rise, and therefore neither does the cost of production and services. 

Second, inflation is driven by the desire of the owners and shareholders of privately owned businesses to have more wealth, and by the desire of governments to acquire more revenue from government run business and the taxes derived from increased company profits. In the AEM's Egalitarian society however, increasing profits hurts the people who run the country just as much as it hurts you, and therefore profits do not increase unless it is absolutely necessary, which should be a very rare occurrence once prices have settled (i.e. within the first 5 years of Egalitarianism). Further, no individual can be economically advantaged by increasing profits.

The prices of food crops will continue to fluctuate due to a number of factors (e.g. cyclones ruining crops, droughts), but these fluctuations will not be the norm or long lasting. Crop prices will also continue fluctuate in relation to on and off seasons. 

Prices also rise as or when non-renewable resources become scarcer (this in not inflation), and this will also occur with the AEM's Egalitarian society.

Also, because the Egalitarian state is usually trying to encourage people to consume less of certain goods and services, particularly those that require non-renewable resources, prices may often be artificially inflated, particularly for newer goods (this is not inflation either).

We also have a strategy for limiting the effects of global inflation, which Australia needs to keep pace with if it doesn't want to be left behind economically. Our strategy to counter this is to regulate the Australian dollar so that we raise and lower its value as global prices rise and fall. By doing this, Australian citizens will continue to pay similar prices (in Australian dollars) for many imported products.

No Private Investments

In the AEM's Egalitarian society, the only way people can acquire money is by working for it (unless one is receiving social security, is a student on a scholarship, or is on our 'Going Off the Rails' program). This means that you can't make money by investing money, which includes interest on your savings account. There are several reasons why the AEM has this policy. First, investments are done for the sole purpose of trying to get ahead of others, and this is exactly what we are trying to prevent by becoming an Egalitarian state. Second, aside from the fact that we don't like people earning money by doing nothing, making money by investing money favours people with more money to invest, thereby increasing any economic stratification that exists. Third, we prevent the probability of social problems that arise from investment schemes. See our 'The Prevention of Corruption, Overcharging, Black-Markets, Stealing Money, Blackmail, Confidence Artists, Protection Rackets, Organized Crime, Rip-Offs, Illegal Immigration, and Black Money' web page for an explanation about this.

No Need for Credit

Credit is necessary within the capitalist society because it is the only way people can afford to buy expensive items such as houses and vehicles, and it is also encouraged because it increases consumption of goods and services, which makes the capitalist world go round. In the AEM's Egalitarian society, credit is unnecessary because people will always be able to afford to rent expensive items such as their home. For those people who wish to buy their home, you merely continue to pay rent until the house is paid off, which should be when you reach retirement age, but you can pay it off quicker if you wish.

Things such as a European holiday will need to be saved up for in advance, as they once used to be.

No International Credit

The AEM also doesn't support governments borrowing money either (from other international lenders) because it lessens the nation's economic autonomy. We prefer to live within our means (like we expect you to), and to go without until we have saved up enough money to pay for whatever it is we need.

After saying this however, we expect that the Egalitarian government will be far more able to finance long-term national projects than capitalist governments currently are. This is because, the state has everybody's money stored in the state treasury, and the state can borrow from this money to pay for such projects, just as commercial banks currently use the money that you deposit in their banks to lend to others or to invest in money-making schemes. In other words, if it needs to, the state can borrow money from its citizens rather than from international lenders who require interest, and therefore we never need to be concerned about being dragged down by spiraling debt. However, after the Egalitarian society pays off the initial debt that is created by becoming an Egalitarian society, it is unlikely that the state will need to borrow money from its citizens because the state, like it's citizens, is expected to accumulate more money than it will ever need.    

Economic Autonomy

At the level of the individual, the AEM will eventually create as society in which all adults and high school age students are economically autonomous. That is, no one will need to economically support or be economically supported by anyone else. You will all have your own accounts and be responsible for your own expenditure. As such, it won't matter if your spouse or your parents choose to only work 2 days a week, you will not usually be economically disadvantaged because of it. We discuss this policy more on our 'Economic Autonomy' web page.

At the level of the state/nation, the AEM intends to buy back Australia, so that Australia can be far more economically autonomous. By doing this, we change Australia from being similar to a public company that is listed on the stock market to a company that wholly owned by Australians. This also serves to radically reduce the profits that are created by Australians leaving Australia.

No Inheritance

Except in the initial phases of Egalitarianism, all assets owned by citizens, except for various sentimental items, go back to the state (i.e. to all citizens) when we die. Inheritance is in conflict with maintaining an Egalitarian society, as it allows people to have more than others without earning it themselves. Inheritance also serves to keep your children poor in relation to the children of the elite for generations. Further, nobody needs inheritance to survive comfortable within the AEM's Egalitarian society. This is discussed more in our Focusing in on the Capitalist Scam web page. 

Paying Bills & Rents

Within the AEM's Egalitarian economy, expenses such as electricity and rental prices (for all the things you rent) do not require you to do anything. These expenses are automatically deducted from your wages prior to receiving it. Your pay slip will display the details of these deductions, so that you can ensure that they are correct each week.  





Home | Our Mission | About the AEM | Major Policies | Current Issues | Join the AEM | Contact Us | Feedback | Resources

Legal Issue:  Copyright  |  Privacy  |  Disclaimer