Emotion, reason and tradition : essays on the social, poltical and economic thought of Michael Polanyi

This collection of essays demonstrates the continuing importance of the work of Michael Polanyi for the understanding, not only of the great events of the 20th century, but also of the problems that face us in the 21st century. Polanyi moved liberalism away from a negative, sceptical and rationalist basis towards an acceptance of trust, tradition and faith in transcendent values. His conception of the free society is not one merely of doing as one pleases nor vacuously 'open', but one of individual and communal self-dedication to those values and ideals.These essays, authored by a distinguished international and interdisciplinary panel of invited contributors, examine Polanyi's specific insights in the theory of knowledge, the nature and source of social order and the philosophy of economics and science and draw relevant comparisons between Polanyi and related thinkers such as Popper, Hayek and Mises. This book shows the sources of Polanyi's ideas and his distinctive contribution to philosophy generally, to social and political thought and to economics.

Few choices under work choices

This paper sets out the history of the philosophical understanding held by the major political parties towards the governance of the Australian industrial relations system. In so doing it notes there has been a long legacy of socialist and conservative political and ideological support for mediating industrial conflict through the institutional agencies provided by conciliation and arbitration tribunals. The discussion notes the erosion of this legacy under the recent ascendancy of neo-liberal political and neo-classical economic thought, an ascendancy that has seen a significant retreat of state responsibility for mediating relations between the two sides of industry in the name of improving business productivity and national economic outcomes. The passing of the Workplace Amendment (Work Choices) Bill 2005 is the latest legislative manifestation of this thinking. This paper challenges the labour market assumptions and expectations of the Bill by arguing that equality in bargaining power between the two sides of industry in the manner afforded by conciliation and arbitration tribunals is essential for any genuine and lasting prosperity to exist between labour and capital.

Work choices : a fair go gone

This paper sets out the history of the philosophical understanding held by the major political parties towards the governance of the Australian industrial relations system. In so doing it notes the legacy of socialist and conservative ideological underpinnings of political support for industrial mediation in the form of conciliation and arbitration tribunals. The discussion notes the recent abrogation of this legacy under the political ascendancy neoclassical economic thought. It challenges the labour market assumptions upon which this thought is based, and in so doing argues against the asserted merits of the proposed Workplace Amendment (Workchoices) Bill 2005.

Self-determination in Aboriginal political thought

Part 1 - Political Ideas -- Liberalism and the Liberal Party of Australia -- The Australian Labor Party and the Third Way -- Australian feminism: the end of 'the universal woman'? -- Self-determination in Aboriginal political thought -- From the 'social laboratory' to the 'Australian Settlement' -- Australian nationalism and internationalism -- Part 2 - Institutions of Democracy -- Parliament and the Executive -- Political integration and the outlook for the Australian party system: party adaptation or regime change? -- Administrative agencies and accountability -- The institutional mediation of human rights in Australia -- The news media and Australian politics -- The role of the state: welfare state or competition state? -- Part 3 - Political Issues and Public Policies -- National policy in a global era -- The economic policy debate -- The decentralisation of industrial relations -- The labour market and the future of employment -- The welfare reform agenda -- The social consequences of the rural reform agenda -- Politics and the environmental policy debate -- Immigration policy and the attack on multiculturalism.

Catholic social thought and labouring ideals in Australia's new industrial context

This article sets out the principles of Catholic social doctrine as they pertain to the rights of employees, the duties of the employers and the obligations of the state. It relates these to the historical development of industrial work and employment in Australia, noting the close proximity of the principles to the social and political arrangements that emerged over the period of the Australian Settlement. It goes on to identify the more recent demise of Catholic activism, which, in combination with the pursuit of neo-liberal policy solutions and market reforms, has purged previous arrangements of their former notions of `fairness' and equity. It concludes that those opposing such solutions and reforms should think beyond simply framing arguments in terms of the economic or the instrumental, and might usefully draw on the labouring ideals set out in Catholic social doctrine to develop a more thorough set of moral and ethical principles to support their cause.

Modelling the relationship between defense spending and economic growth for the Fiji Islands

The goal of this paper is to examine the nexus between GDP and military expenditure. We model this relationship within a multivariate framework by including exports in the model. We use the recently developed bounds testing approach to cointegration and find that there is a long run relationship among the variables when GDP is the endogenous variable. Normalizing on GDP and using four different estimators, we find that in the long run both military expenditure and exports have a positive impact on GDP. Finally, using the Granger causality test, we find that there is evidence for military expenditure Granger causing exports and exports Granger causing GDP, implying that military expenditure indirectly Granger causes GDP in the short run. In the long run, we find that both military expenditure and exports Granger cause GDP for Fiji. Our findings are consistent with the Keynesian school of thought, leading us to derive some policy implications.

Liberalism and economic growth: a theoretical exploration

This article explores how the liberal tradition of political thought has dealt with the prospect of limits to economic growth and how it should approach this issue in the future. Using Andrew Moravcsik’s explanatory liberal theory, it finds that the commitment of governments to growth stems primarily from the aggregation of societal preferences for the social goods that growth produces. The arguments of liberal thinkers who have grappled with the issue of growth are then examined to gain a deeper theoretical understanding of the relationship between liberal democracy and growth. These include John Stuart Mill, for whom a non-growing economy was essential for overcoming the tension between liberty and equality; Ronald Dworkin who argues that growth is a derivative means to further more fundamental ends; and Marcel Wissenburg who suggests that it is legitimate for liberal democracies to limit the preference for growth if it risks undermining liberal norms and institutions. Using
these theoretical insights, it is argued that environmental degradation, which is partly driven by growth, now threatens the fundamental liberal commitments of many liberals, including some forms of
state neutralism, utilitarianism, inalienable individual rights and above all human autonomy. Therefore, liberal democratic states not only can, but must move towards a post-growth economy to secure these objectives into the future.

Assessing the economic costs of parental mental illness

The economics discipline is broadly concerned with the allocation of scarce societal resources in the context of unlimited societal wants. Intrinsic to economics is the concept of choice – that is, how can we best use scarce societal resources when our wants are greater than the resources available to us. If we were able to satisfy all our wants and needs with our available resources, there would be no need for the discipline of economics! In most economies, markets are used to make these decisions. Markets are basically a mechanism whereby consumers and producers interact in such a way that the “best” allocation of resources is thought to occur. This “best” allocation of resources in economics is said to be an efficient allocation. Efficiency basically assumes that the correct types of services are being produced (allocative efficiency) in the least resource-intensive way (technical efficiency). Inherent within all these concepts is not just cost but also the benefit derived from the consumption of different goods and services. A central tenant of economics is the concept of opportunity cost whereby the true cost of any given action (or service) is the benefit which would have been attained if the resources used in providing that action or service were used in an alternative way. Therefore, both costs and benefits are central to the economic way of thinking. Contrary to much public perception, economics is not necessarily about cutting costs; rather, it is about using resources in the “best” possible way. Inherent within this idea of “best” is “value,” “benefit,” or “utility” (utility is the term most often seen in economics textbooks to refer to the value of using resources). Unfortunately, there are many assumptions which need to be met for markets to operate in an ideal way. One important assumption is that consumers of goods and services need to be aware of the full impact and consequences of all consumption choices. When market failures occur, governments can sometimes intervene in the operation of markets either because the markets are not working properly (largely because the assumptions underpinning the market mechanism are not met) or for social-justice or equity considerations (Rice and Unruh, 2009).

Labor-leisure choice : is everything as straightforward as one might have thought?

We argue that a full understanding of a rational labor supply choice in a standard dynamic life cycle framework is obscure, despite the framework’s being seemingly self-explanatory, straightforward, and intuitively sensible. In a completely friction-free environment, we, to our knowledge, are the first to provide a complete analytic solution to the benchmark model that presumes a kind of labor supply behavior that is typically taken as the standard in economic studies. We find thatsuch standard behavior holds only for a narrow set of parameters. For many alternative parameterizations, the labor supply behavior of a rational agent is either highly unrealistic, or extremely hard to predict and interpret. A complete understanding of a rational, intertemporal labor supply choice requires further analysis.