Gillard is no Hawke or Keating: in economic policy or market economics

The Gillard philosophy stems from an unerring faith in the ability of business to make adjustments and to innovate in the face of measures imposed by the government. And a view that economic production and productivity is impervious to the measures that government takes represents an optimism that is demonstrably false – failed states demonstrate the ability of governments to destroy economies and many Latin American economies show how interventionist politics has undermined prosperity. 

While Hawke and Keating recognized the regulatory glue as an impediment to the forward motion of the economy, the Prime Minister calls this a reform agenda. With regard to the government’s current legislative program she adds: “this legislation…step by step…will make a difference to the lives of families across Australia”. 

This vote of confidence in more control over the economy, flies in the face of evidence about the creation of prosperity.