Emerson and a market economy
Craig spoke tonight at the Sydney Institute about his belief in a the role of a market economy in providing for a better society. His key point seems to rest on the role of education in overcoming social and economic disadvantage, which is a laudable objective however one which should be considered in light of prevailing political realities. That education is fundamental to a creative and successful society is difficult to argue yet Dr Emerson would have to be aware that such gains are only realised in the medium to long term. This government may well be long gone before the generation of children who might benefit from early childhood education intervention get to vote, and they are not likely to remember anyway. You need only look at how many of today’s right wing politicians benefited from the free university education that used to be on offer in Australia.
Dr Emerson referred to market failure and the need to protect, perhaps even enshrine competition in the market place as the best way to provide benefit to society at large. Does this herald a new wave of players in the world of business and commerce at a time when economic confidence is crashing as basic resource prices skyrocket? Craig suggested that government intervention in the marketplace is only appropriate when the market fails, but that begs the question of what the government might do if say the transport sector collapsed because of the price of fuel or if the grocery retail business suddenly became unable to put food on the table for everyone? Indeed what good is intervention in the case where a business causes massive environmental damage, after all the damage is done and often irreparable.
Removing bureaucratic regulation in the world of small business, particularly given some of the stupid discrepancies between states is long overdue and one that should have some benefit, but why stop with the small stuff? The waste and duplication inherit in our antiquated states based system of government could be easily resolved by simply getting rid of them. But that’s obviously an agenda item for some other time (perhaps when all of the current crop of labor state governments finally implode).
But it is his claims that reward for effort, individual freedom, better educational opportunities and workplace participation will equate to a richer and better Australia whilst remain true to traditional Labor values that remains contentious. In making this claim Dr Emerson seems to acknowledge that as far as the left is concerned, the only place these days for equality is in the area of opportunity, which is an domain notoriously difficult to measure. Distribution of wealth, something which can be measured far more accurately is no longer on the political agenda. Equally missing from Dr Emerson’s address is any consideration of just what we actually do with all of the so-called wealth if the market economy actually starts to deliver, besides stuff it into the bank. We would do well to remember the Sioux wisdom that money cannot be eaten.
Dr Emerson ministerial page is here.