Tuesday, May 11, 2021

Investors and corporations to reap the benefits of the pandemic


The pandemic is likely to exacerbate existing trends toward highly concentrated markets and investment, changing the nature of economic and political power as it does so.

(Image: AAP/Private Media)

The new era of big government that Australia entered in 2020 will soon be matched by bigger, more dominant corporations and a consolidated investment sector that will wield power in the hundreds of billions.

The implications of the government’s push for superannuation funds to merge — the creation of a new set of super-powerful investment behemoths, led by the government’s most loathed sector, industry super — are beginning to become apparent to people beyond those of us who’ve been pointing them out for a while.

The emergence — at the government’s behest — of mega-super funds controlling investments worth hundreds of billions of dollars, and pursuing their own environmental, social, and corporate governance agendas separate from whatever pro-fossil fuel goals the government has, is surely alarming to the Liberal Party, which includes a number of backbenchers who not merely want to destroy industry super but end compulsory superannuation altogether.

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