After almost four years of the Albanese government, it’s time to declare it worse than Gough Whitlam’s.
The polarising former Labor leader led a chaotic, short-lived government in the early 1970s that ended spectacularly,
but this government’s legacy will ultimately be worse, both culturally and economically.Nations can deteriorate for reasons beyond their control; invading foreign armies or, less dramatically, a severe slump in demand for their exports. We’ve endured none of that yet living standards have been slipping by more than any other developed nation, largely through deliberate policy choices, including massive immigration levels and destruction of a once reliable cheap energy grid.
For all the talk of social cohesion, the national mood and sense of collective purpose is weaker than ever, amid extreme crackdowns on free speech that Whitlam would have thought unthinkable. GDP per capita, a common proxy for living standards, has steadily fallen in roughly two-thirds of the last 15 quarters – the longest sustained decline ever.
Even on the government’s own biased measures (which exclude the price of buying a home, interest rates and taxes), real wages (after inflation) are down more than 6 per cent since 2020.
At least Gough, who also had the redeeming quality of eloquence and erudition, occasionally displayed some economic sense. His government cut tariffs by 25 per cent across the board in 1973, helping open Australia up to the world.
The Albanese government’s contributions have been a roll call of recklessness, spending billions to buy university student votes, $300 electricity bill handouts, supercharging doctors’ incomes with $8.5bn of “incentives”, and bailing out steelworks and smelters its own emissions policies had made unviable. Meanwhile the NDIS, the centrepiece of the government’s so-called “care economy”, remains a policy disaster of epic proportions, and threatens to corrupt the entire nation.
...
Whitlam didn’t enjoy the extraordinary global demand for Australia’s resources Canberra still does, providing a deluge of company tax revenue that helps paper over the economy’s otherwise structural weakness.
No wonder the nation’s productivity growth over the past five years has averaged -0.4 per cent, the worst period on record, dragged down by an ever-larger non-market sector, according to the Productivity Commission. Around four-fifths of all new jobs are in the government or de facto government sector, something unthinkable in Gough’s day.
Whitlam made university education free when academic standards were still high and very few people attended. His government full dismantled the remnants of the White Australia policy but he didn’t seek to flood the nation with millions of workers from developing countries in a way that would obviously undermine native-born Australians’ quality of life and incomes.
...
Labor was thrashed at the 1975 election yet still managed to pull just over 40 per cent of the primary vote; 50 years later the party will be lucky to win 30 per cent at the next election.
Forum
Pages: 1 
