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Labor governments since the early 20th Century have consistently attempted to boost business profits. The way they have done so has changed but their policies have been consistently shaped by both the shifting requirements of Australian capitalism and the ALP’s nature as a capitalist workers party. From the 1940s until the early 1970s, Labor advocated a program of Keynesian and protectionist economics. As the economics profession turned against protectionism, the Whitlam Government sought to integrate Australian capitalism more closely with the global economy. The Hawke and Keating Governments went much further in opening the economy, deregulating, privatizing and corporatizing than their conservative predecessor. In most areas, with the notable exception of industrial relations, they generally acted in line with the new, neo-liberal orthodoxy in economics. The logic of the Rudd and Gillard Governments’ responses to the global economic crisis, invoking a mixture of neo-liberal and Keynesian precepts, like the economic policies of its Labor predecessors, can only be grasped in terms of the ALP’s distinctive material constitution.

Making capitalism acceptable?: The economic policy of Australian social democracy since the 1970s