Tag Archives: Richard Denniss

George Megalogenis’ Exit Strategy

George Megalogenis, Exit Strategy: Politics after the Pandemic (Quarterly Essay 82, 2021) – plus correspondence in QE 83

In the opening pages of this Quarterly Essay, George Megalogenis, veteran of the Canberra press gallery, describes the way trust in the Australian government was eroded over the Rudd–Gillard–Rudd-Abbott–Turnbull–Morrison years. The key question for the essay, he writes, is:

Can Australia restore faith in good government? Are we doomed to repeat the farce of the last decade, when we avoided the worst of the GFC only to succumb to policy gridlock and American-style electoral polarisation in the recovery? Or will the visceral experience of the pandemic allow us to reconceive the political economy of the nation?

(Page 4)

It may be the key question, but as far as I can tell the essay makes no real attempt to answer it.

What it does do, with considerable flair, is spell out the history that defines the present moment. He compares the Covid recession with previous recessions, and describes the way relationships between governments and the heads of treasury have changed and developed over the decades since World War Two. He also describes the way the economists advising governments finally learned that government spending worked better than restraint as a response to economic recession.

The essay revisits, among other things, the Global Financial Crisis and the Pink Batts beat-up. It covers familiar ground, such as the way Prime Minister Morrison’s was slammed for taking a secret holiday in during the 2019-2020 bushfires meant that he was less cavalier about the Covid crisis. It discusses the way universities were left out of Covid rescue packages.

It tells these stories in prose that makes us uninitiated readers feel as if we’re understanding something, with the kind of gossipy personal touches that remind us that government decisions are made by fallible human beings, who are advised by other fallible human beings, but that fallibility is substantially decreased if public servants aren’t sacked wholesale by incoming governments, as they were by Tony Abbott.

The essay is dated 7 June 2021. By the time it was published a couple of weeks later, the current Sydney Covid-19 outbreak had begun. By the time I got to read it three months after that, a sizeable proportion of the Australian population was back in lockdown, there were weird demonstrations in Melbourne, and the prospect of the Federal Government offering the kind of leadership that would restore faith in good government seemed remote. But the essay’s final paragraph – helped along by submarine deals and more bloviating about climate change – has lost none of its force:

Morrison has yet to accept responsibility for the future. The longer he waits, the greater the risk that the rest of the world, led by a reinvigorated United States, imposes its own terms Australia


Quite a bit of the correspondence in Quarterly Essay 83 – Lech Blaine’s Top Blokes – responds specifically to Megalogenis’ discussion of the Morrison government’s treatment of universities. Megalogenis discussion is interesting – they did it because they hate universities, because universities produce Labor-voters, and because they hate Victoria and Victoria specialises in higher education.There’s a lot of nuance in the discussion, but the Morrison government doesn’t emerge from it smelling any more like a rose.

For me, the most telling response to the essay’s main thesis came from Richard Denniss, chief economist at the Australia Institute and author of Quarterly Essay 70, Dead Right (my blog post here). He laments that this essay didn’t contain ‘a lot more on possible exit strategies and the political forces that will determine which options are placed on the democratic menu and, ultimately which dish is selected.’ I love this departure from the usual calm tone of QE correspondence, in which he quarrels not so much with George Megalogenis as with his source – an economist calling out an economist rather than the journalist who may be simply innocent meat in the sandwich:

George quotes former Treasury secretary Ken Henry saying [successive governments’] hostility to government spending ‘was not something that the Australian Treasury had dreamt up … The academic consensus around fiscal policy was basically: “It’s too hard to use” … The best thing to do is sit on your hands and let the private sector work it out.’

What utter crap. No such academic consensus ever existed, and it’s not at all clear from the essay whether George believes it did. But what is clear … is the tendency in Australia for powerful people to source advice, economic or otherwise, from those they agree with.

(QE 83 page 123)

The most telling additional piece of information comes from Travers McLeod, chief executive officer of the Centre for Policy Development. The National Covid-19 Coordination Commission (NCCC), he tells us, was established by Scott Morrison in March 2020 to ‘coordinate advice to the Australian government on actions to anticipate and mitigate the economic and social effects of the global coronavirus pandemic’. Then, on 3 May 2021, ‘with Australia at the bottom of global vaccination rates, and the Delta strain having just been used to justify a ban on Australians returning from India’, it was disbanded.

It does look as if any hope for a reasoned response in Australia to the ongoing pandemic crisis (not to mention the climate emergency) must lie with the states, or with any luck, a change of government.

Richard Denniss’s Dead Right

Richard Denniss, Dead Right: How neoliberalism ate itself and what comes next (Quarterly Essay 70, 2018)

qe70.jpg

If, like me, you expect an essay on economics to be dry and jargon-ridden, you will be relieved to find that this Quarterly Essay is witty, passionate and accessible. On the 2018 Sydney Writers’ Festival podcast of Richard Denniss discussing his previous book, Curing Affluenza, there are a number of Anna Russell ‘I’m not making this up’ moments: the audience laughs at a piece of snark about the workings of capitalism and right-wing politics, and Denniss protests that what he has just said is the simple truth. These pages bristle with the written equivalents of those moments. It would be hilarious if it wasn’t real

The main thesis:

Neoliberalism, the catch-all term for all things small government, has been the ideal cloak behind which to conceal enormous shifts in Australia’s wealth and culture. It has provided powerful people with the perfect language in which to dress up their self-interest as the national interest.

Neoliberalism pretends to be a coherent theory of economics that says the market should be allowed to function without government interference – hence deregulation and privatisation are always the way to go. But as preached and practised in Australia it is really a rhetoric to disguise greed and self-interest. Denniss multiplies examples of places where the proponents of ‘small government’ are all for government subsidy and regulation, so long as it goes to them or helps causes close to their hearts. The Murdoch media empire and Adani coal mine are only the most egregious instances.

Since I started drafting this blog post, Australia’s Prime Minister has dismissed the ALP’s policy emphasis on welfare, health and education as being about ‘More taxes, more taxes, more taxes, more taxes and more taxes’. He has also described the Sydney Opera House as ‘Sydney’s biggest billboard’. I could almost hear Richard Denniss’s pen scratching these utterances into his notes for future articles.

But yelling at the absurdities and cruelties of neoliberalism is a game we all play in front of our televisions every night. Denniss offers analysis and some steps towards remedy. The real power of neoliberalism, he writes,

has been to convince the media and large swathes of the public that … debates about the shape of our communities and the design of our institutions are somehow a ‘distraction’ from the main game of further tax cuts and industrial relations reform. Neoliberalism has produced the bizarre result that serious politicians and serious political parties define themselves by their ‘economic agenda’, while declaring simultaneously that it is individual choice, not government policy, that creates jobs and prosperity.

Faith in our democratic institutions, he argues persuasively, has been eroded:

The opposite of the narrow economic agenda of neoliberalism isn’t a progressive economic reform agenda; it is the re-establishment of a broad debate about the national interest. After thirty years of hearing that politicians, government and taxes are the things that ruin the economy, it is time for the public to hear and see that politicians, government and taxes are the foundations on which prosperous democratic nations are built.

The essay ends with a list of five new institutions that might help restore a vibrant democracy – institutions that Denniss would like to see introduced only if citizens are consulted at the beginning, the middle and the end of the process of their creation. The institutions, none of which are either left or right propositions, are:

A charter of rights – to place our collective vision of our fundamental rights above any attempts to limit such rights based on the politics of the day. This would have protected us from the recent ‘robot-debt’ debacle, and would curb the current expansion of Peter Dutton’s powers.

• A National Interest Commission – to replace the Productivity Commission and provide ‘broad advice on the kind of advantages (as opposed to benefits) and disadvantages (as opposed to costs) that m=a major project like … an enormous new mine … might entail’.

• A federal corruption watchdog – hardly needs arguing for.

• Democratic education – that is, education in the workings of our democratic system, especially perhaps in the nature of the Senate and how Senate voting works.

• A sovereign wealth fund – ‘imagine if all tax collected from the mining industry went into the same fund from which all [mining] subsidies were drawn. Not only would there be much greater transparency and accountability concerning the subsidies, the revenue collected from the sale of our scarce resources also could not be squandered on short-term vote-buying.’

This QE was published in June. An advantage of coming to it late is that the next in the series has been published, with 47 pages of correspondence about Dead Right up the back (not bad for a 77 page essay). As always, the correspondence sheds new and interesting light on the essay’s subject. This is particularly true of John Quiggin’s account of how Tony Abbott’s prime-ministership dealt the death blow to Australian neoliberalism’s credibility. Interesting in a different way is John McTiernan’s attack, which is a brilliant example of a kind of political writing that distorts the writer’s enemy’s position and then tramples all over the straw man it has created: this is apparently quite effective in the opinion columns of the Australian, when readers of the attack can be assumed not to have read the thing being attacked – here it just makes Mr McTiernan look illiterate. On the other hand, The Australian‘s economics editor, Adam Creighton, is one of several economists who criticise  Denniss’s essay trenchantly without grossly misrepresenting it.

Denniss uses his right of reply deftly and with more courtesy than sarcasm. He says in his concluding paragraph:

It is a privilege to have my arguments tested by such diverse voices. The conclusion of Dead Right is that the opposite of neoliberal economics isn’t progressive economics, but engaged democracy. And engaged democracy requires exactly the sort of well-meaning debate contained in these pages.