Gene Tunny welcomes Dr Nicholas Gruen from Lateral Economics to explore the decline of Australia's policy exceptionalism. They delve into the era of microeconomic reforms, the role of neoliberalism, and the challenges current policymakers face. Nicholas provides a historical perspective and discusses potential ways forward. He shares insights from his time advising the Hawke and Keating governments, discussing the successes and failures of Australia’s economic reforms from the 1980s and 1990s.

This is the last episode before a four-week break. Economics Explored will return in August 2024. 

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What’s covered in EP248

• Introduction to Australia's loss of policy exceptionalism. (0:00)
• Regulation, economics, and politics in Australia in the 1960s and 1970s. (4:59)
• Early Australian economic reform and its challenges. (10:45)
• Australian economic reform under Hawke and Keating governments. (16:20)
• Car industry policy. (21:36)
• Free education vs HECS - why was HECS a good reform? (32:06)
• Airline deregulation. (36:48)
• Privatisation of public assets and its consequences. (42:55)
• Economics of toll roads (48:18)

Takeaways

1. Since the early 2000s, Australia seems to have lost the problem-solving spirit and policy exceptionalism of the 1980s and 1990s, struggling in various policy areas like energy.
2. Impact of Neoliberalism: Neoliberal reforms, initially embraced by the left, significantly improved Australia’s economic landscape but also led to unintended consequences.
3. Key reforms included cutting tariffs, higher education policy changes, airline deregulation, and other competition policy reforms, but some privatised infrastructure assets have not been appropriately regulated post-privatisation.
4. Challenges in Current Policy: Australia faces challenges in various policy areas, including energy and housing, indicating a need for renewed reform efforts.
5. Moving forward will require reinvigorating honest, evidence-based policy conversations focusing on problem-solving rather than fixed ideological positions.

Links relevant to the conversation

Nicholas’s YouTube channel where Uncomfortable Collisions with Reality episode will be published:

https://www.youtube.com/@NicholasGruen

Nicholas’s Club Troppo post on economic reform featuring Colin Clark quote:

https://clubtroppo.com.au/2008/03/01/compare-and-contrast/

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Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.