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Liberalism in Australia

First Article and critical thinking:

In the first article,the work of Gosta Esping-Andersen and Francis Castle has been discussed which keeps the view of bringing the three worlds of welfare capitalism toward a liberal model. This included Australasia, United States and Britain. Hence they wanted that the countries in these regions must get benefited by the most suitable operations of the labor market. This way a social democratic regime was supported to be developed which could reduce the influence of the market and keep alive the efforts towards universal social welfare rights. This led to the beginning of the new social democratic systems in Australasia with the mean tested tax funded benefits system that actually confined its support towards the agrarian interest and social welfare. However in 1970s the country started the superannuation of the contribution model and made efforts towards the development of health benefits for the common people.

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Second theory was given by Castle with description of Australasian exceptionalism. He discussed cross national comparison of welfare states and politics. This way he supported the idea of state intervention that was required to safeguard the interest of the common people on one hand and support to the economy following arbitration in industrial affairs by following tariff protection of industry and protection of wage earner interest.

The third theory was given which stated Australasia to follow social democratic system through which mean tested funded benefits should be developed. This theory developed from 1990s and resulted in making Australia from social democratic development of health benefits as in 1970 to superannuation on the contribution model. Thus a huge change came in form the 1941s Chifley’s policy of 1941 which concentrated on fetching more taxes from people for expanded set of benefits to present policy of social welfare. A similar kind of change in the role of church and civil society was observed which supported the development of concept of mixed economy of welfare state(Murphy, 2013).


 The outcome was the development of social benefits which were disbursed after defining the eligibility and exclusions. The term dependent was redefined wherein earlier the male was considered as the sole bread winner. Also the racial exclusion were abolished which earlier supported the concept of White Australia legislated in year 1901.

Second article and critical thinking:

In the second article the economic liberalism developed overtime from 1970s has been discussed. The development of economic liberalism in Australia including United Kingdom and New Zealand gave a new way of development in the region. Keating (2004) states that the influence of economic liberalism becomes more effective when the market based policy instruments are controlled by the limited state capacity.Earlier in 1914 the concept of economic liberalism was not so popular. However till the coming up of 1990s the concept became very popular and got support from people around the world. Liberal Capitalism was actually followed during 1914 when the new powers were rising in the global arena. This included Germany and United States which became huge economic powers till the 1930s. The advent of free trade policies in some regions while protectionist policies in other resulted in the development of friction between various countries. Socialist movement also gained momentum in this period which led to the rise of class struggle concept in different nations. Finally came the concept of democracy which brought in together the ideas of communism and capitalism together for the welfare of the common people.

Australia became an ideal example and first among the countries to shift from classical liberal state to modern democratic social state. However various concepts such as socialism without doctrines and arbitration systems developed overtime. This led to the adoption of eon-liberal -reforms from 1980s.

However the New Deal concept of President Roosevelt of United States brought in new ideas of development and social welfare to the world. This concept supported the idea of government intervention up to greater extent so that the maximum benefit in the form of social welfare can be distributed among the common people. This led to the rise in discussion for change from capitalist and socialist state to democratic state. The crucial event that gave a push towards this kind of development was the collapse of the Brent Woods system of fixed exchange rates that occurred between 1970 and 1972 that observed rise in inflation and US budget deficits.

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The result was the deregulation in government enterprises that led to the formation of the state as a welfare state than profiteering. Privatization was allowed in the business however the taxation system was developed so that the state earning can be ensured and the welfare projects can be funded accordingly(Saunders & Walter, 2005)


This way the main aim of the economic liberalism that developed in the global arena was to develop a minimal State power and role in core functions including education, health etc.and complete removal from non-core functions as manufacturing and other businesses. 


Murphy, J., 2013. A Decent Provision: Australian Welfare Policies: 1879 to 1949. Famham: Ashgate Publishing Ltd.

Saunders, P. & Walter, J., 2005. Ideas and Influence: Social science and public policy in Australia. Sydney: University of NSW Press. 

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