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Quarterly Essay #61
Balancing Act: Australia Between Recession and Renewal
In this urgent essay, George Megalogenis argues that Australia risks becoming globalisation’s next and most unnecessary victim. The next shock, whenever it comes, will find us with our economic guard down, and a political system that has shredded its authority.Megalogenis outlines the challenge for Malcolm Turnbull and his government. Our tax system is unfair and we have failed to invest in infrastructure and education. Both sides of politics are clinging defensively to an old model because it tells them a reassuring story of Australian success. But that model has been exhausted by capitalism’s extended crisis and the end of the mining boom. Trusting to the market has left us with gridlocked cities, growing inequality and a corporate sector that feels no obligation to pay tax. It is time to redraw the line between market and state.Balancing Act is a passionate look at the politics of change and renewal, and a bold call for active government. It took World War II to provide the energy and focus for the reconstruction that laid the foundation for modern Australia. Will it take another crisis to prompt a new reconstruction?“Australia is in transition. Saying it is easy. The panic kicks in when we are compelled to describe what the future might look like. There is no complacent middle to aim at. We will either catch the next wave of prosperity, or finally succumb to the Great Recession.” —George Megalogenis, Balancing Act‘What sets Balancing Act apart is the rich historical context and the razor-sharp clarity with which [Megalogenis] explains present realities.’ —Australian Book Review
170 pages, Kindle Edition
First published February 1, 2016
11 people are currently reading
48 people want to read
About the author
George Megalogenis
14 books36 followersGeorge Megalogenis has written three previous Quarterly Essays. His book The Australian Moment won the 2013 Prime Minister's Literary Award for Non-fiction and the 2012 Walkley Award for Non-fiction. He is also the author of Faultlines, The Longest Decade, Australia's Second Chance and The Football Solution.
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Displaying 1 - 14 of 14 reviews
March 25, 2016
George Megalogenis is an amiable, straightforward writer, and as a good journalist he doesn't bury the lede. Indeed his argument is basically summed up in the back cover blurb of this Quarterly Essay: Australia's current model of an open, liberal market economy, with its political emphasis on the state always cutting taxes and running surpluses - is no longer coping with a global capitalist crisis. Therefore Australia needs to invest in education and infrastructure, and to pay for it corporations should pay more tax, and governments should stop being afraid of borrowing. Oh yes, and we need to tackle inequality and property bubbles as well. Climate change is always something of an afterthought is these types of essays.
Megalogenis is a talented articulator of prevailing conventional wisdom, so for him to write an essay such as this suggests CW is shifting. As to how to achieve it though, George is still despite himself in thrall to the 'reform' narrative of Australian politics - whereby heroic leaders such as Paul Keating seize us by the scruffs of our necks for our own good. However for reasons set out by Liberal pollster Mark Textor, whom George quotes, this approach (if it was ever real) is unlikely to work now. That is because the state, having divested itself of its responsibilities to look after voters under capitalism - no longer has loyalty from those voters. Hence the rise in relative political volatility in Australia (not that we are that unstable compared to some places).
So 'reform' in the future will have to shift from an elite to a popular project - which means said reforms may not always be what the conventional wisdom thinks is good for us.
Megalogenis is a talented articulator of prevailing conventional wisdom, so for him to write an essay such as this suggests CW is shifting. As to how to achieve it though, George is still despite himself in thrall to the 'reform' narrative of Australian politics - whereby heroic leaders such as Paul Keating seize us by the scruffs of our necks for our own good. However for reasons set out by Liberal pollster Mark Textor, whom George quotes, this approach (if it was ever real) is unlikely to work now. That is because the state, having divested itself of its responsibilities to look after voters under capitalism - no longer has loyalty from those voters. Hence the rise in relative political volatility in Australia (not that we are that unstable compared to some places).
So 'reform' in the future will have to shift from an elite to a popular project - which means said reforms may not always be what the conventional wisdom thinks is good for us.
February 21, 2017
In Balancing Act, George Megalogenis argues that Australian governments of all stripes have lost sight of their proper role in the economy and are pursuing policies that are likely to lead the country into deep recession.
Megalogenis is one of the less rabidly-insane commentators to have emerged from the Murdoch stables in recent years, and he makes a sound case that Australian governments have forgotten how to use fiscal policy to influence economic outcomes. Since most other economic levers have been ceded to markets or regulators, our governments are fighting an impending global downturn with one arm firmly tied behind their backs.
This argument is essentially a Keynesian one that a government should not be handing revenue back willy-nilly as electoral bribes, but should be investigating in infrastructure projects that will make up for the decline of the mining sector and manufacturing in our economy. Fetishes about budget deficits need to be dispensed with; our Federal government needs more revenue to invest more, not to slash spending and give tax cuts, as is the present neoconservative mantra.
Megalogenis occasionally lets slip a slight leaning in favour of the conservatives, but overall this is a well-argued essay that sadly doesn't give much hope for Australians nervous about the future.
Megalogenis is one of the less rabidly-insane commentators to have emerged from the Murdoch stables in recent years, and he makes a sound case that Australian governments have forgotten how to use fiscal policy to influence economic outcomes. Since most other economic levers have been ceded to markets or regulators, our governments are fighting an impending global downturn with one arm firmly tied behind their backs.
This argument is essentially a Keynesian one that a government should not be handing revenue back willy-nilly as electoral bribes, but should be investigating in infrastructure projects that will make up for the decline of the mining sector and manufacturing in our economy. Fetishes about budget deficits need to be dispensed with; our Federal government needs more revenue to invest more, not to slash spending and give tax cuts, as is the present neoconservative mantra.
Megalogenis occasionally lets slip a slight leaning in favour of the conservatives, but overall this is a well-argued essay that sadly doesn't give much hope for Australians nervous about the future.
February 26, 2023
Megalogenis argues that Australia is at a critical juncture where it risks becoming the next victim of globalisation due to a political system that has lost its authority and has let its economic guard down. He stresses the need for active government intervention to address issues such as an unfair tax system, inadequate investment in infrastructure and education, and growing inequality. Megalogenis's passionate call for change and renewal is a timely reminder that the old model of trusting the market has failed and that Australia must redraw the line between market and state. This urgent essay offers a bold vision for the future of Australia and is a must-read for anyone interested in politics and economics.
Favourite quotes:
"Before the news and polling cycles accelerated, leaders assumed that the electorate understood reform was a long game. Not anymore. The digital age has shrunk the public attention span and lured the government into making each thing it says appear to be a big idea"
"The government is weaker today because the public it serves is quicker to anger, and the Opposition has realised the safest way back to power is opposition, not policy renewal. No mandate need be respected because the Opposition can trust the media to set impossible standards for the government to meet."
Favourite quotes:
"Before the news and polling cycles accelerated, leaders assumed that the electorate understood reform was a long game. Not anymore. The digital age has shrunk the public attention span and lured the government into making each thing it says appear to be a big idea"
"The government is weaker today because the public it serves is quicker to anger, and the Opposition has realised the safest way back to power is opposition, not policy renewal. No mandate need be respected because the Opposition can trust the media to set impossible standards for the government to meet."
November 26, 2023
Different people but still the same problems
May 10, 2016
The commentary on Australia's present economic and political situation is not particularly new but he raises Curtin, Chifley and Menzies as an interesting constellation. These three leaders, from different sides of the political fence shared a commitment to infrastructure and policy-led leadership. See my fuller review at https://residentjudge.wordpress.com/2...
March 21, 2016
Very insightful essay into the need for Australian politicians to start acting as leaders and making some major but necessary changes to ensure Australia does not become a financial basket-case.
In the responses' to the previous essay on political amnesia, Amanda Walsh's personal observations are wittingly scary.
In the responses' to the previous essay on political amnesia, Amanda Walsh's personal observations are wittingly scary.
April 4, 2016
Always love reading gorgeous George! Anyone who's still deluded enough to think the Libs are better at managing the nations economy should read this - it's always ideology and politics before pragmatism
July 11, 2016
A typically thoughtful book from Mega George, getting into the whys and wherefores of how Australia arrived at this particularly troubling economic moment. Long on diagnosis and short on cures, but that's true of most of these books.
June 19, 2016
Fantastic. Perfect volume to follow Laura Tingle's essay.
August 13, 2016
A must read for anyone interested on what has happened to our country, economically.
April 10, 2017
Still trying to make sense of the election, reading Balancing Act by George Megalogenis in Quarterly Essay https://anzlitlovers.com/2016/07/05/b...
August 16, 2016
Brilliant as usual
October 5, 2016
Great look at australian economics and politics
April 6, 2016
Surprisingly funny reading.
Displaying 1 - 14 of 14 reviews