Australian Prime Minister calls for Ultra-Keynesian New World Order

In the lead up to the 2007 Australian Election, Kevin Rudd – Australia’s Obama – pledged he was an “economic conservative“. Now, one year on, the truth comes out.

Having already broken his promise to cut taxes, in an essay to be published in the next edition of leftist-magazine The Monthly, Prime Minister Rudd has launched an unprecedented attack on the free market, positioning himself far to the economic left of even Labor Prime Ministers Bob Hawke and Paul Keating.

An extract from today’s Sydney Morning Hearld on the article reads:

“The time has come, off the back of the current crisis, to proclaim that the great neo-liberal experiment of the past 30 years has failed, that the emperor has no clothes,” he writes of those who placed their faith in the corrective powers of the market.

Mr Rudd writes in The Monthly that just as Franklin Roosevelt rebuilt US capitalism after the Great Depression, modern-day “social democrats” such as himself and the US President, Barack Obama, must do the same again. But he argues that “minor tweakings of long-established orthodoxies will not do” and advocates a new system that reaches beyond the 70-year-old interventionist principles of John Maynard Keynes.

“Neo-liberalism and the free-market fundamentalism it has produced has been revealed as little more than personal greed dressed up as an economic philosophy. And, ironically, it now falls to social democracy to prevent liberal capitalism from cannibalising itself.”

I repeat: “advocates a new system that reaches beyond the 70-year-old interventionist principles of John Maynard Keynes.”

In a little over a year, Kevin Rudd transformed from an economic conservative, to an unabashed socialist, dreaming of government interfering in every aspects of our lives.

He began by regulating what we drink. Then censoring what we read. He is forcing us to join unions. And now, it would seem, a new world socialist order is his plan.

Change indeed.

Update: You can read the first 1500 words online here. It begins “From time to time in human history there occur events of a truly seismic significance, events that mark a turning point between one epoch and the next, when one orthodoxy is overthrown and another takes its place…” Not one for hyperbole is he?

Update 2: To his credit, Rudd does not embrace protectionism. Not that that’s suprising considering the overwhelming bipartisan consensus that thinking rationally on this issue has at home.

Update 3: I recall that Alex Hawke MP, Federal Member for Mitchell “was once thrown out of [a high school] class for telling a teacher there was more to economics than Keynes.” I fully expect him to deliver the same message – in the same style – to Prime Minister Krudd.

Update 4: “Ironically, it falls to social democracy to prevent liberal capitalism from cannibalising itself”: Does this remind anyone else of “We had to burn down the villiage in order to save it”?

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9 Responses to “Australian Prime Minister calls for Ultra-Keynesian New World Order”

  1. Daniel Le Clere Says:

    I see a great deal of pain ahead for all of us as a result of this new policy direction. I am not overly concerned about this world realignment for the long term prospects of capitalism.

    These economic policies can only result in severe economic hardship for the constituents of these governments. History has shown us that these hardships will feed into the socialist furor for a limited period, but in the long term they shall ignite a new interest in capitalism.

    Fortunately, I think that this cyclic change will be quicker than the world has experienced before as the economic theory supporting market based economies is far better regarded today than in previous times.

  2. Pete Says:

    This just shows how people revert to type in moments of uncertainty. Rudd’s ‘I’m an economic conservative’ was a load of shit and now that his claims are being tested we see him for what he really is.

    I wonder though, just how far will they go with this new era of regulation?

  3. Eric Hood Says:

    IF you have not read America’s Great Depression by Murray Rothbard please buy and read it. The book is a real eye opener and will show you exactly what is going to happen to Australia if this madness continues.
    http://www.mises.org/store/Americas-Great-Depression-P63.aspx

    Here is the description.

    Applied Austrian economics doesn’t get better than this. Murray N. Rothbard’s America’s Great Depression is a staple of modern economic literature and crucial for understanding a pivotal event in American and world history.

    The Mises Institute edition features, along with a new introduction by historian Paul Johnson, top-quality paper and bindings, in line with the standard set by The Scholars Edition of Human Action.

    Since it first appeared in 1963, it has been the definitive treatment of the causes of the depression. The book remains canonical today because the debate is still very alive.

    Rothbard opens with a theoretical treatment of business cycle theory, showing how an expansive monetary policy generates imbalances between investment and consumption. He proceeds to examine the Fed’s policies of the 1920s, demonstrating that it was quite inflationary even if the effects did not show up in the price of goods and services. He showed that the stock market correction was merely one symptom of the investment boom that led inevitably to a bust.

    The Great Depression was not a crisis for capitalism but merely an example of the downturn part of the business cycle, which in turn was generated by government intervention in the economy. Had the book appeared in the 1940s, it might have spared the world much grief. Even so, its appearance in 1963 meant that free-market advocates had their first full-scale treatment of this crucial subject. The damage to the intellectual world inflicted by Keynesian- and socialist-style treatments would be limited from that day forward.

  4. Ralph Buttigieg Says:

    G’day,

    Yep, its those great social democrats like Reese, Carr, Bracks etc. that are going to save us. Oooohhh dear.

    ta

    Ralph

  5. Eric Hood Says:

    Here is the speech Prime Minister Rudd should have made this week.

    The following is by Ludwig Erhart, German Finance Minister at a party meeting in 1948.

    I do not regard myself as the representative of special interests, and certainly not as the representative of the interests of industry or trade. It would be quite wrong to assume that. To be responsible for economic policy means to be responsible to the people as a whole. I am deeply convinced that the difficult problems facing us can only be solved if in using the market economy we manage not to favour groups, but rather to secure a decent standard of living for all our people and continuously increase it through hard work and higher output. It is quite wrong to brand me as a man who is only interested in defending certain interests. The contrary is true. In the last analysis I demand not only great sacrifices from those responsible businessman who have power over the production and distribution network of the economy, but also their understanding and responsibility as well.

  6. motion29 Says:

    A sweeping new system in a time of unprecedented challeneges? BAH! Its an excuse and cop out for the socialist panacea!

    Perhaps the fact that Obama is about to embark on another glutenous monetary printing spree indicates things are crazier than first anticipated.

    If Krudd is so enamoured with the idea of an Ultra-Keynesian New World Order maybe its time to ditch the American Dollar and do something similar to the EU.

    http://en.wikipedia.org/wiki/North_American_currency_union#Amero_coins

    http://www.911oz.com/vbulletin/showthread.php?p=16868

    Might explain why the American approach to monetary policy is so willy-nilly their getting ready for an EU style Amero currency.

    A change to an Amero currency would be hilarious though and put allot of the bailed out banks and car manufacturers back to square one.

    So instead of buying power with the Greenback they’d have to buy off the Govt with the Amero!

    Where’s Dan Brown. Need to pay him to write a 2nd and 3rd Davinci Code.

    The Davinci Code: The Amero Conspiracy LOL – Now thats entertainment!

  7. MDMConnell Says:

    I think it’s possible Rudd was just tailoring his message to suit his audience. Tell the leftists it’s all capitalism’s fault, do some very minor fiddling about the edges, and that’s it. I seriously doubt Rudd is that ideologically driven, I view him as someone who will say anything to anyone to get their votes. He’ll probably give a speech to the Business Council next week telling them he’s going to let the market correct by itself!

  8. ‘The Government can’t fix our problems and shouldn’t try’ « Pimpin For Freedom Says:

    […] Rudd quickly shedding any semblence of fiscal conservatism (See Tim Andrews blog post on Rudd drinking the Keynesian koolaid) it is essential that we keep fighting the good fight and making sure that people know that it was […]

  9. Help Stop Australia’s Democratic Farce! « The musings of an Australian classical liberal in Washington DC Says:

    […] so far is that earlier this week Australian Prime Minister Kevin Rudd (fresh from calling for a New Ultra-Keynsian World Order)  proposed the biggest spending increase in Australia’s history. It […]

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