34
submitted 9 months ago by vividspecter@lemm.ee to c/australia@aussie.zone
you are viewing a single comment's thread
view the rest of the comments
[-] ajsadauskas@aus.social 7 points 9 months ago* (last edited 9 months ago)

@Ilandar @vividspecter The short answer is yes. A lot of Australia's mutual obligation system was created by the Howard government, copying what Bill Clinton was doing in the US, and Tony Blair in the UK.

But it was also underpinned by the same neoliberal ideology as the US and the UK.

Basically, up until the late 1970s and early 1980s, Australia's official government policy was to have full employment. It was a minor scandal when unemployment skyrocketed to around 3% under Malcolm Fraser.

Especially after the oil shocks that followed the Suez Canal crisis, inflation was running quite high through the late '70s and early '80s.

To try to curb this high inflation, the US, UK, and Australia all adopted a range of neoliberal economic policies advocated by people like Milton Friedman and Friedrich Hayek.

The idea was that if everyone had a job, when inflation rose, workers would demand higher wages, and those wages would put further pressure on inflation, creating a cycle.

So one of the main ways the Hawke Labor government sought to stop this inflation cycle was by stopping wage growth.

As part of this policy shift, The Australian government walked away from the idea of guaranteeing full employment.

As part of a set of policies called the Accord, Hawke and the unions basically agreed to wage increases below the rate of inflation, in exchange for the introduction of Medicare.

The Reserve Bank got an independent board that would raise Interest rates if inflation got above 2-3%.

Importantly, if unemployment rates ever fell too low, the Reserve Bank would see it as an inflationary risk, and have to raise interest rates to slow the economy (which increases unemployment) to stop inflation.

So instead of seeking full employment, the idea that there's a "natural rate of unemployment" (as economists call it) became part of our economic system.

But, instead of properly explaining to the public that there was inevitably going to be this natural rate of unemployment, governments from Hawke and Keating onwards instead blamed the victims and called them "dole bludgers".

In the early '90s, the Keating government followed this up by bringing in a limited form of work for the dole as part of his Working Nation policy.

Around this time, in the US, Bill Clinton, and in the UK, Tony Blair, brought in tough new welfare policies. They were built around mutual obligation.

In the late '90s and early 2000s, the Howard government followed in the footsteps of these crackdowns and made mutual obligation a core part of the Australian welfare system.

He also privatised a lot of the old Commonwealth Employment Service, outsourcing its training services to private "Jobs Network" providers. What was left over became Centrelink.

If you're interested, there's a lot more details about how mutual obligation came about under Howard here: https://www.theguardian.com/australia-news/2022/jan/01/where-mutual-obligation-began-john-howards-paradigm-shift-on-welfare

And there's also in this government research paper from 1999: https://aifs.gov.au/research/family-matters/no-54/welfare-reform-britain-australia-and-united-states #auspol

[-] vividspecter@lemm.ee 2 points 9 months ago

Thanks for the detailed comment and links. I knew about the general neoliberal consensus of the 80s and 90s and the increasing stigmatizing of welfare, but not the connection with mutual obligations between the US, UK, and Australia.

Also explains part of the motivation behind the Abbott/Hockey 2014 budget with its aggressive attacks on welfare, particularly welfare for the young.

[-] Ilandar@aussie.zone 1 points 9 months ago

Thank you for the detailed answer, I will definitely check out the provided reading.

this post was submitted on 29 Nov 2023
34 points (90.5% liked)

Australia

3507 readers
83 users here now

A place to discuss Australia and important Australian issues.

Before you post:

If you're posting anything related to:

If you're posting Australian News (not opinion or discussion pieces) post it to Australian News

Rules

This community is run under the rules of aussie.zone. In addition to those rules:

Banner Photo

Congratulations to @Tau@aussie.zone who had the most upvoted submission to our banner photo competition

Recommended and Related Communities

Be sure to check out and subscribe to our related communities on aussie.zone:

Plus other communities for sport and major cities.

https://aussie.zone/communities

Moderation

Since Kbin doesn't show Lemmy Moderators, I'll list them here. Also note that Kbin does not distinguish moderator comments.

Additionally, we have our instance admins: @lodion@aussie.zone and @Nath@aussie.zone

founded 1 year ago
MODERATORS