Does Manne really have to insult the Australian electorate by challenging Labor not to "scramble to win back some of the "centre ground" of politics by imitating the populist conservative attitudes and policies of the Howard era?
In truth, most policy outcomes are shaped by the ongoing interaction that takes place between political and policy leadership, interest groups and public opinion. In other words, the resulting policy mix often depends very much on the quality of its players to make their arguments and influence the public through various mediums, including newspapers, radio, television and, more recently, the Internet.
We saw the result of this complex interaction via the implementation of the GST when the Howard government was forced to exempt food and other services through a compromise with the Australian Democrats. Further, the Coalition had no choice but to back down prior to the 2007 federal election in regards to its controversial industrial relations reforms, although polls at the time suggest its fate was already sealed.
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To now, and notwithstanding that Australia too has major policy difficulties, despite its fortune of having vast mineral and energy wealth in the ground, the general evidence indicates that Australia remains a relatively progressive society under both Labor and Coalition governments. Even under Howard, Australia took a high level of immigrants from all areas of the world, including an increasing share from Asia. Australia still spent a significant proportion of its GDP on public social welfare assistance, reaching 17.3 per cent of GDP in 2000. And environment spending increased from 1996, reaching a record $4.3 billion for the 2007-08 financial year.
There is also significant information out there that indicates that Tony Abbott has a passionate interest in the environment, multiculturalism and social welfare issues. Abbott, and other Coalition members, have also been influenced by positive social developments in recent decades.
As I have argued before, Australia remains light years away from a US-style society with a policy mix that has failed to remove unnecessary social cleavages. While I too have some concerns about recent policy trends, my recent move to Albury-Wodonga has demonstrated little difference from Canberra in terms of the services and facilities available to my family. As an Australian, I am proud of this.
But Australia has never been immune from the competitive economic pressures caused by an increasingly competitive and inter-dependent international economy. Therefore, many Australian voters, perhaps more aligned to the Coalition, may view a progressive government as one that makes greater effort to spend public outlays in line with its means rather than simply acquire more and more debt. While Australia was relatively unscathed by the global financial crisis given stimulus measures by the Rudd Labor Government, it was the Howard government which largely reduced Australia's net public debt from 26.3 per cent in 1995 to a surplus of 7.2 per cent in 2007.
Many voters also view a progressive government as one that can manage important and expensive public programs. Thus, many voters, including myself, were angered by the waste that resulted from the Home Insulation Program (HIP) and the Building the Education Program. I even wrote an article attacking the HIP, published in the journal Public Policy, although one academic previously told me to send my proposal to Quadrant on the basis it was polemic rubbish.
Many may also be put off by the havoc caused by an abrupt end to programs such as the poorly designed HIP scheme, and more recently the premature end of solar hot water system rebate scheme, which can leave companies struggling after investing in stock, parts and production.
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Many may be put off by the poor standard of recent Labor government, as demonstrated by numerous scandals associated with NSW Labor government ministers, which suggest that corruption and self-interest can and does infiltrate all sides of politics. I also once worked for a Labor politician who went to jail for corruption, despite writing many books on social justice.
Others may view a progressive government as one that encourages individual responsibility, although Labor governments too have accepted such a rationale in recent decades. Contrary to Manne's past views, mutual obligation for social security recipients is unanimously supported by the Australian public because most believe that we cannot afford to give people a free ride, although most would support some assistance being provided. I probably would not have become a university researcher without this carrot-and-stick approach given my many previous years lacking purpose.
While policy solutions are difficult, and outcomes can be harsh to some players, government often must act on policy issues, even in the face of moral certainty. Take asylum seekers. At a time when many Australians perceive themselves to be struggling, many do not want refugees rocking up on our shores. Hence, it would take a game government to defy such sentiment, although arguments for a higher humanitarian intake within Australia's immigration program does have merit.