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Keating vs. Howard: Economic Legacy Debate

The document analyzes and disputes Prime Minister John Howard's claims that he was responsible for economic reforms in Australia in the 1980s and 1990s. It argues that Paul Keating and former Prime Minister Malcolm Fraser are correct in saying that it was the Labor governments under Bob Hawke and Paul Keating that were responsible for opening up the Australian economy, not Howard. It provides several pieces of evidence against Howard's narrative, including that Howard cannot produce any cabinet submissions from his time as treasurer in the 1970s proposing economic reforms, and that he dragged his feet in establishing a committee that influenced some of Labor's later reforms.

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0% found this document useful (0 votes)
9 views4 pages

Keating vs. Howard: Economic Legacy Debate

The document analyzes and disputes Prime Minister John Howard's claims that he was responsible for economic reforms in Australia in the 1980s and 1990s. It argues that Paul Keating and former Prime Minister Malcolm Fraser are correct in saying that it was the Labor governments under Bob Hawke and Paul Keating that were responsible for opening up the Australian economy, not Howard. It provides several pieces of evidence against Howard's narrative, including that Howard cannot produce any cabinet submissions from his time as treasurer in the 1970s proposing economic reforms, and that he dragged his feet in establishing a committee that influenced some of Labor's later reforms.

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© Attribution Non-Commercial (BY-NC)
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History backs Keatings claim

Friday, June 29, 2007 Your Say 50 Comments PAUL Keating is 100 per cent right when he says that when you change the government, you change the nation. He might have added that when the government changes, the nations storyline also changes as the incoming party emphasises, and sometimes rewrites, strands of our historical narrative to suit itself (writes Michael Costello). The narrative matters. Along with taking care of the voters hip pocket, its a fundamental weapon in asserting and maintaining dominance over your political opponent. They, along with the qualities of the contending leaders, are what determines election outcomes. Thats why there has been a mighty mud wrestle this week between current and former prime ministers, treasurers and Treasury secretaries over who did what, when and why on economic policy in Australia during the past three decades. And thats why this isnt an academic spat about the past between former treasurers Howard and Keating, but rather is a key political conflict between Prime Minister John Howard and Opposition Leader Kevin Rudd. At stake is Labors reputation as an economic manager and, by implication, its fitness for government. Keating isnt always right. Hes wrong when he says, as he has for years, that Labor leaders since him have failed to defend the Hawke and Keating

governments economic record and achievements. Kim Beazley for one, in speech after speech in both his terms as Labor leader, did just that - and the fact that these comments were never reported does not alter the fact that Beazley made them. But Keating is completely correct in taking Howard on over the PMs cheeky rewriting of history to cast himself as Australias economic reform hero of the past 30 years. And its not just a former Labor prime minister pointing out Howards porkies on this score but a former Liberal prime minister, too - Howards old boss, Malcolm Fraser. Howard would have us believe that as the Fraser governments treasurer from 1977 to 1983 he was frustrated in his desire to open up the then uncompetitive, inward-looking Australian economy, by a fuddy-duddy boss. Howard positions himself as the person really behind the subsequent floating of the Australian dollar, the dismantling of industry protection and the introduction of enterprise bargaining into the workplace that resulted in big increases in labour productivity in the 1980s and early 90s. The massive boom Australia is enjoying now is therefore down to him, goes Howards argument. Does this stand up to scrutiny? Over the years Fraser has had a simple, consistent and powerful response to Howards whine about being an economic reform warrior cruelly stymied by an old-money, Western Districts prime minister: show me the cabinet submissions. Fraser points out that Howard cannot produce a single cabinet submission in which Howard proposed any measure to open up and modernise the Australian economy that was knocked back. In the absence of evidence to the contrary, Frasers word has to be accepted.

The 30-year-rule protecting cabinet papers from Howards period as treasurer is unlikely to save Howard on this point as it progressively expires from the end of this year. As prime minister he can access any cabinet paper he wants. If there were cabinet submissions countering Frasers taunt, you can bet Howard would have dug them out and leaked them by now. Further, Howard was widely known at the time to have dragged his feet establishing the Campbell committee, whose report on the financial system set the tone for aspects of Labors reforms in the 80s and early 90s. The impetus came from Frasers office, which had to prod a reluctant Howard into bringing a cabinet submission forward to get the Campbell committee going. Howard trying to steal credit for the Hawke and Keating governments massive and massively successful modernisation of the Australian economy (in partnership with an informed and intelligent trade union movement) is desperate stuff. As he casts his mind back to that period he may want to pause and consider this point: he was in Opposition the whole time. The argument that Howard made the public case for such reform during the Labor years is sterile to say the least. Being able to talk about sex doesnt make the bride pregnant. It takes something more. In the case of economic reform in the 80s and early 90s it took actually being in office. Not only was Howard in Opposition at the time, he and his ideas were so ill-supported on his own side of politics that he was Liberal leader for just three years and nine months of Labors 13 years in office. Howard couldnt sell an ice cream in hell for most of his time in Opposition, let alone a challenging economic reform agenda. Following on from Bill Haydens herculean efforts in Opposition to school Labor in modern economic fundamentals, Bob Hawke

and Paul Keating, in contrast, could and did. Howards economic legacy is this: a massive increase in the complexity of the tax system, an explosion in business regulation, inculcation of a public debt aversion that has choked off development of the infrastructure needed to optimise growth, and labour laws thicker than the Sydney Yellow Pages. Thats progress Howard-style. You can take the word of Keating and Fraser as gospel on Howards worth as an economic reformer. Lucky for Howard hes got a once-every-50-years sized terms of trade boost and booming world economy to provide a figleaf for his embarrassment.

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Fraser's challenge regarding the absence of any cabinet submissions from Howard proposing economic reforms significantly undermines Howard's claims. By highlighting that Howard cannot produce evidence of attempts to modernize the economy, Fraser dismantles the credibility of Howard's self-portrayal as an economic reformer. This absence of documented initiatives exposes Howard’s later assertions as mere retrospective attempts to claim undeserved credit for the successful reforms of subsequent Labor governments .

Paul Keating is justified in challenging Howard's portrayal as a reformer given the lack of evidence supporting Howard’s claimed contributions to economic reforms. Historical records and Fraser's admissions reveal Howard did not propose significant economic policies as Treasurer. Keating's critique highlights Howard’s opposition role during pivotal Labor-initiated reforms, undermining Howard's narrative of economic leadership, thus preserving the historical accuracy of these events .

Historical economic policy narratives can significantly shape voter perceptions by presenting particular leaders or parties as more competent economic managers. This manipulation of historical achievements serves as a tool for asserting political dominance. In the case discussed, John Howard’s attempt to recast himself as a reform hero is countered by assertions from Keating and Fraser, highlighting discrepancies in the narrative. Such political historiography influences voter trust and perception of a party's capability, crucial for electoral success .

Malcolm Fraser disputes John Howard's account by highlighting that no cabinet submissions were made by Howard advocating for economic reforms while serving as Treasurer. Fraser asserts that Howard lacked documented proposals for economic modernization, challenging Howard's narrative of being thwarted by Fraser. This lack of evidence delegitimizes Howard’s claim to have been instrumental in the economic reforms that were actually spearheaded by the Hawke and Keating governments .

The political dynamics between Howard and Labor leaders highlight a complex struggle over economic reform legacy claims. Howard's attempts to attribute reform successes to his strategies are refuted by Labor leaders like Keating, who emphasize their direct role in implementing transformative policies. Michael Costello and Malcolm Fraser further challenge Howard's narrative by pointing out his lack of documented reform proposals and minimal duration as a supportive opposition leader. This intricate dynamic underscores the importance of leadership roles and historical narrative control in political credibility .

Paul Keating challenged John Howard’s claims by refuting Howard’s portrayal as a central figure in Australia's economic reforms during the 1980s and 1990s. According to Keating, Howard, during his tenure as Treasurer under Fraser, failed to initiate significant economic policies and was instead resistant to forming the Campbell committee, which played a pivotal role in shaping future reforms. Furthermore, Keating pointed out that Howard's contributions while in Opposition were minimal due to lack of support from his party, and he was not in office to implement such reforms during the Labor government’s tenure .

Criticisms of Howard’s economic legacy include a substantial increase in tax system complexity, an explosion in business regulations, and the propagation of a public debt aversion which hindered infrastructure development. Additionally, labor laws became overly complex under his leadership, diluting potential benefits from such reforms. Despite these criticisms, Howard’s economic narrative benefits from favorable global trade conditions, masking these issues .

The Campbell committee was pivotal in setting the tone for economic reforms in the 1980s and early 90s by analyzing and making recommendations on the Australian financial system. Although hesitant at first, the Fraser government, including Treasurer John Howard, eventually established the committee upon prompting. The committee's findings significantly influenced the reform agenda implemented by later Labor governments led by Hawke and Keating, fundamentally restructuring Australia's economy .

Howard’s position in Opposition during most of the Labor administrations limited his ability to directly influence economic reform. Despite claiming to advocate for reforms, Howard lacked substantial support even within his party and served as Liberal leader for only a fraction of Labor’s tenure in power. His inability to sell complex economic agendas and his lack of office prevented him from effectively pushing for the reforms that Hawke and Keating successfully implemented while in government .

Changing the government influences the national storyline as the incoming party tends to emphasize and sometimes rewrite parts of the historical narrative to suit its agenda and assert dominance over political opponents. This narrative transformation is crucial alongside addressing economic concerns and leader qualities to determine election outcomes .

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