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"...public opinion deserves to be respected as well as despised" G.W.F. Hegel, 'Philosophy of Right'

Dialectics and public policy « Previous | |Next »
March 6, 2003

Now that dialectics has made its appearance in public affairs and given legitimacy by a senior federal government minister, we can gently put it to some use. Take this advice offered to the government by an editorial in the Financial Review 9 March 6, 2003, p. 70). It states:

"The Australian economy is still fairly resilent in the face of global slowdown and the drought and is not in danger of suffering a prolonged period of sluggish activity...But if the outlook is not as rosy as the consensus suggests, the economy will need additional stimulus beyond the momentum in the pipeline if unemployment is not to rise. That's the measurable social cost of reform fatigue: in the long run, the most vulnerable pay the price. Rather than take this chance the commonwealth and the states should be taking out insurance by committing themselves to reforms that encourage invetment and jobs."

Sound advice, if you accept the premise that the aim of the politics is to keep the economic machine ticking over. But that ole dialectical negative is working away under the surface. The free market works by creative destruction. For insights on this see the posts, OF GALES OF DESTRUCTIVE CREATION, and SCHUMPETERRHOEA by Rob Schaap. Creative destruction means more unemployment as old industries give way to new ones. Under the market rules of the survival of the fitest boosting the economy means creating new jobs and new unemployment.

Aah, the power of dialectics. No wonder the neo-classial economists prefer the analytic method. It makes policy life so much easier.

| Posted by Gary Sauer-Thompson at 10:56 AM | | Comments (0)
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