The decline of sensible politics

Meanwhile, no contemporary major political party offers any sensible explanation in terms of failed economic philosophy. Instead, governments have confused social policy with economic policy. The Voice debate is a classic example of social policy dominant over the major economic problem of homelessness. Academia, which has pushed free market theories since the 1980's, appears to have forgotten the vast legacy of knowledge contained in economic literature. The best on offer appears to be Labors promise to rebuild manufacturing; but, how?

The Reconstruction Fund itself cannot rebuild a manufacturing sector. Labor will need to protect emerging domestic infant manufactures from cheap international imports. Yet, there is no media discussion on this aspect of rebuilding a manufacturing sector. Advanced manufacturing might sound an imaginative policy direction; but, it will employ few workers. Advanced manufacturing will offer little to counter the declining social fabric evident in : homelessness, youth crime, long term unemployment, underemployment, and falling living standards. Any sensible economic solution must start with a hold on immigration whilst building an industrial base that can address the serious maldistribution of income and wealth that has underwritten the erosion of the social fabric under supply side economics.

A contributing problem to homelessness is the dependence upon immigration to stimulate economic growth. Immigration dependence has its origin over the inflationary 1980-1990s. To increase the supply of labour was considered necessary to soften excessive wage demands. Since then, as industry has moved offshore, the service sector has come to dominate Australian employment. As the service sector contributes little to real output, its contribution to growth is calculated by wage increases. In a low wage economy, this has created a policy dilemma. Consequently, immigration has become the instrument to build population and stimulate growth.

At the heart of Australia's emerging economic dislocation lies failure of contemporary economic philosophy. No major political party or unelected elite corporatist group is addressing this fundamental in economic knowledge. Contemporary economic philosophy was the chosen political framework of the baby boomer generation which gained political ascendency over the 1980's- 1990's. The political values of that generation now appear unacceptable to contemporary millennials. The reality is that a major percentage of the Australian population is suffering. There has to emerge a sensible debate over the suitability of Australia continuing the failed economic philosophies that underwrite contemporary economic policy.