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Political behaviour of voters befuddles the experts

By Ben Rees - posted Tuesday, 30 March 2021


Inappropriate policy decision based upon unrealistic assumptions of economic modelling have direct impact upon the wellbeing of the silenced majority. The structural conflict between the two orders of a classless corporatist economic system become inevitably expressed at the ballot box.

Post War Mixed Capitalist Economy

Political Order

The mixed economy lies in the third quadrant of the economic systems model in which there is public ownership of some means of production. Community policy influence is achieved through organised pressure groups across business, industry sectors, and social groups. These groups lobby political parties and politicians to influence policy outcomes through industry and social policies. Labour had its own pressure group: the trade union movement, which pursued working conditions and rates of pay. Ultimately though, political decisions were made by ministers advised by a professional public service.

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Political influence wielded by pressure groups can be illustrated by the 1972 Commonwealth Government decision to reinstate a 20% investment allowance in response to pressure applied by the Associated Chamber of Manufacturers. For the ALP, the power of the trade unions is often overstated; but, traditionally, the trade union movement has held a substantive voting power at the national level of the Party; and, many Labour parliamentarians were ex workers from particular industries.

Political parties themselves tended to be drawn from particular sectors of the economy. For example, the Country Party represented agricultural industries. The Liberal Party was asserted to represent the business sector whilst Labor represented the working class.

Economic Order

The economic order was concerned with the distribution of income and allocation of resources necessary to meet the post War commitment to the 1945 Full Employment White paper. As economic modelling was non-existent, policy decisions were based upon empirical factual evidence. Data collection was carried out through the Australian Bureau of Statistics, Bureau of Agricultural Economics, Reserve bank; and, periodic census whilst industry pressure groups completed the information flow necessary for policy deliberations.

Distribution of income was institutionally determined by the Tariff Board, Arbitration System, and orderly marketing of important rural industries. A comprehensive welfare system supported the incomes of those excluded from the institutional distribution of income. Deliberations of the institutional determination of income distribution was finally implemented by the parliamentary system.

Averaged Economic Systems Performance Comparison

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It is the underutilisation of the labour force that tells the story of the two economic systems. The underutilisation rate is only available since 1978 so catches only the closing years of the mixed economy; but, capture the early years of institutionalised economic modelling from 1975

Conclusions

In 1973, the Electoral Act was amended to lower the voting age from 21 years to 18 years. Back then the age cohort was considered a significant voting population. Within the political order of economic systems, the impact of rising underutilisation rate for both groups 15-19 years and 15-24 years and sympathetic supporters seems not understood by our professional political commentators.

Covid-19 pandemic economic contraction policies imposed upon the corporatist economic system would have a voter transmission pathway through the breakdown of the class system. Under corporatism, the break down in the class system has allowed policy input through the political order from special interest social groups alongside privileged industry groups. Consequently, the combination of powerful political groups and monopoly industry interests have effectively silenced the voice of the silent majority. Consequently, as the political order within the corporatist economic system has not served the interests of the wider community at all well, voter reaction at the ballot box becomes inevitable.

Decisions in the economic order based upon assumed reality of economic models has led to tepid economic growth. An underperforming economic order has led to unacceptable levels of underutilisation of the labour force particularly in young age groups. Consequently, negative impacts have emerged in the form of social fabric erosion, inequitable income distribution and declining living standards. The distribution of income and wealth under the corporatist economic order is another transmission pathway for voter dissent.

As policy decisions within the economic order of corporatism do not reflect the real world, corporatism's reliance upon assumed reality in the economic order must also accept policy judgement at the ballot box as ordinary voters exercise their democratic right. It is time to re-evaluate the role of economic modelling in the economic order decision process; and, the structure of the political order of the corporatist model

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About the Author

Ben Rees is both a farmer and a research economist. He has been a contributor to QUT research projects such as Rebuilding Rural Australia. Over the years he has been keynote and guest speaker at national and local rural meetings and conferences. Ben also participated in a 2004 Monash Farm Forum.

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