The politics of redistribution and envy

In many ways, the ALP’s selective “ladder of opportunity” model, aimed to promote upward mobility for users of government services and various special interest groups on one hand, while kicking out the “rungs” from the ladder for those who aspire to improve their circumstances.

The post-election chorus of pro-Labor supporters, bemoaning the extent to which their traditional working-class supporters - with their increasing levels of homeownership, private sector school enrolments and private health insurance membership - have become “little capitalists” with “middle-class employer values”, powerfully illustrates Labor’s philosophical “divide-and-conquer” policies.

Forcing people to consume inefficient and poorly performing public services has become increasingly alien to the everyday interests of the mainstream Australian community. The electoral unsuitability of the ALP was further compounded by a continued lack of policy credibility in the areas of economic management, national security and border protection.

On October 9, 2004, the Australian people provided an overwhelming vote of confidence in the Liberal Party’s “ladder of opportunity”. The one which supports individual enterprise, initiative and equal opportunity by providing a judicious mix of funding (including the allocation of GST revenues to the states) for essential public services to those in genuine need, complemented by policies that support private choices made by individuals and families.

The modern Liberal Party has successfully reconciled economic liberalisation and social conservatism in public policy and understands the importance of building economic capacity to provide growth, incentives and jobs. These policies fund assistance programmes for those in need and assist in improving social conditions through the realisation of individual self-fulfilment.

By recognising the role, and limits, of government and markets, John Howard and the Federal Liberals have offered an electorally appealing suite of policies to promote opportunity, incentive and responsibility over welfarism and dependence on government for individuals and families alike.

The Federal Labor Party and the political left views the “ladder of opportunity” of upward economic and social mobility through the narrow lens of the distribution of income and wealth, which has to be made more equal through government tax, welfare and spending policies. However, in attempting to rectify perceived “social injustices”, the ALP released a suite of “sledge-hammer” policies, which proposed to punish the legitimate economic and social choices made by increasing numbers within the Australian electorate.

The engagement of people in the market economy has increased, through homeownership, small business formation, private health insurance membership, non-government school student enrolments, or a reduction in unemployment. Traditional social institutions and values, such as a belief in families providing the best environment to raise and nurture children, individual and community self-reliance and responsibility, have never been stronger.

As the ALP looks towards the next election, it may be well served to remember that engaging in a similar campaign of envy and redistribution in three years time, effectively kicking out the “rungs” from the “ladder of opportunity” of choice, will be done at its own electoral peril.