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Geoffrey Robinson is a lecturer in History and Politics at Deakin University, Geelong. His analysis of the 1930–32 Labor government in New South Wales has recently been published as When the Labor Party Dreams: Class, Politics and Policy in New South Wales 1930–32. <geoffrey.robinson@deakin.edu.au> <http://geoffrobinson.info>
Endnotes
* This article has been peer reviewed for Labour History by two anonymous referees. The author thanks participants at the 2005 Australasian Political Studies Association conference for comments on an earlier version of this article and Lisa Hay for reviewing the manuscript.
1. R. Goldscheid, 'A Sociological Approach to Problems of Public Finance' (1925), in R.A. Musgrave & A. Peacock (eds), Classics in the Theory of Public Finance, Macmillan, London, 1958, p. 203.
2. C. Webber & A. Wildavsky, A History of Taxation and Expenditure in the Western World, Simon & Schuster, New York, 1986, pp. 570–72; R. Mule, Political Parties, Games and Redistribution, Cambridge University Press, Cambridge, 2001, pp. 33–35; P.H. Lindert, Growing Public: Social Spending and Economic Growth Since the Eighteenth Century, Vol. 1, Cambridge University Press, New York, 2004, pp. 20–36; H.L. Wilensky, The Welfare State and Equality: Structural and Ideological Roots of Public Expenditure, University of California Press, Berkeley, 1975, p. 5
3. S. Hansen, Globalization and the Politics of Pay: Policy Choices in the American States, Georgetown University Press, Washington, DC, 2006, pp. 6–9; P. Conceicao, P. Ferreira & J. K. Galbraith, 'Inequality and unemployment in Europe: the American cure', in J.K. Galbraith & M. Berner (eds), Inequality and Industrial Change: A Global View, Cambridge University Press, Cambridge, 2001, pp. 109–11.
4. J. Bryce, Modern Democracies, Vol. 2, Macmillan & Co., London, 1921, pp. 181, 189, 231, 258, 281–83, 355; W. Hancock, Australia, Ernest Benn, London, 1945 (first ed. 1930), pp. 140, 179; F.W. Eggleston, 'Political parties and their economic policies', in D.B. Copland, (ed.), An Economic Survey of Australia (The Annals of the American Academy of Political and Social Science, vol. 158), Philadelphia, 1930, p. 250.
5. Hancock, Australia, pp. 185–199. J.F. Cairns, The Welfare State in Australia: A Study in the Development of Public Policy, PhD thesis, University of Melbourne, 1957, p. vii; F.W. Eggleston, Reflections of an Australian Liberal, F.W. Cheshire, Melbourne, 1953, p. 151.
6. Royal Commission on Taxation, Fourth Report, Commonwealth Parliamentary Papers (CPP), 1923–24, vol. 3, para. 613, 680; F. Mann, 'The sociology of taxation', Review of Politics, vol. 5, no. 2, 1943.
7. S. Sherlock, '"Good-bye the state's progress": state enterprise and Labor's plan for a north Queensland steel industry, 1915–20', Labour History, no. 90, 2006; R. Fitzgerald & H. Thornton, Labor in Queensland: From the 1880s to 1988, University of Queensland Press, Brisbane, 1989, pp. 69–137; B. Jansson, The Sixteen-Trillion Dollar Mistake: How the U.S. Bungled Its National Priorities from the New Deal to the Present, Columbia University Press, New York, 2001, p. 2.
8. H. Mayer, 'Some conceptions of the Australian party system 1910–1950', in M. Beever & F. B. Smith (eds), Historical Studies: Selected Articles, Second Series, University of Melbourne Press, Melbourne, 1967, p. 234; N.G. Butlin, 'Colonial socialism in Australia 1860–1900', in H.G.J. Aitken (ed.), The State and Economic Growth, Social Science Research Council, New York, 1959; N.G. Butlin, A. Barnard & J.J. Pincus, Government and Capitalism: Public and Private Choice in Twentieth-Century Australia, George Allen & Unwin, Sydney, 1982, pp. 10–48.
9. R. Gerritsen, 'State Budgetary Outcomes and Typologies of the Australian States', in B. Galligan (ed)., Comparative state policies, Longman Cheshire, Melbourne, 1988, p. 149. H. McQueen, Gone Tomorrow: Australia in the 1980s, Angus & Robertson, Sydney, 1982, pp. 112–16. B. Galligan, Utah and Queensland Coal: A Study of Micro Political Economy of Modern Capitalism and the State, University of Queensland Press, Brisbane, 1989, pp. 12–14.
10. R. Catley & B. McFarlane, Australian Capitalism in Boom and Depression, Alternative Publishing Co-operative Ltd, Sydney, 1981, pp. 221–24; M. Simms, A Liberal Nation: The Liberal Party and Australian Politics, Hale & Iremonger, Sydney, 1982, pp. 143–165; F.G. Castles, The Working Class and Welfare in Australia and New Zealand, Allen & Unwin, Sydney, 1985; C. Forster, 'The economy, wages and the establishment of arbitration', in S. Macintyre & R. Mitchell (eds), Foundations of Arbitration: The Origins and Effects of State Compulsory Arbitration 1890–1914, Oxford University Press, Melbourne, 1989.
11. S. Mills, Taxation in Australia, Macmillan & Co., London, 1925, p. 263. J. H. Gilbert, The Tax Systems of Australasia, University of Oregon Monographs, Eugene, Oregon, 1943, pp. 23, 30. P.A. Harris, Metamorphoses of the Australasian Income Tax: 1866 to 1922, Australian Tax Research Foundation Research Study No. 37, 2002; pp. 17, 45, 63, 130, 141; R. Watts, The Foundations of the National Welfare State, George Allen & Unwin, Sydney, 1987, pp. 88–103.
12. S. Macintyre, 'The short history of social democracy in Australia', in D. Rawson (ed.), Blast, Budge or Bypass: Towards a Social Democratic Australia, Academy of the Social Sciences in Australia, Canberra, 1984, pp. 12–13; C. Bulbeck, 'A review of the Accord's first three years', Thesis Eleven, no. 14, 1986; P. Beilharz, Transforming Labor: Labour Tradition and the Labor Decade in Australia, Cambridge University Press, Melbourne, 1994, pp. 132, 148–55.
13. M. Lake, 'The politics of respectability: identifying the masculinist context', in S. Magarey, S. Rowley & S. Sheridan (eds), Debutante Nation: Feminism Contests the 1890s, Allen & Unwin, Sydney, 1993; M. Lake, Getting Equal: The History of Australian Feminism, Allen & Unwin, Sydney, 1999; M. Sawer, The Ethical State? Social Liberalism in Australia, University of Melbourne Press, Melbourne, 2003.
14. A. Barnard, Australian Government Finances: A Statistical Overview, 1850–1982, Australian National University Working Paper in Economic History, no. 59, December 1985, p. 25.
15. This does not include the one-day Fuller Nationalist government in New South Wales on 20 December 1921.
16. M. Mann, The Sources of Social Power, Vol. 2: The Rise of Classes and Nation-States, 1760–1914, Cambridge University Press, Cambridge, 1993, pp. 360–81, 479, 499–500; L.E. Davis & R.A. Huttenback, Mammon and the Pursuit of Empire: The Political Economy of British Imperialism, 1860–1912, Cambridge University Press, Cambridge, 1986, pp. 20–22, 122, 162; Bryce, Modern Democracies, Vol. 2, pp. 195–97; Lindert, Growing Public, pp. 80–86.
17. This article draws on contemporary statistical publications and two later compilations. The major contemporary reports are: 1) the Finance Bulletins of the Commonwealth Bureau of Census & Statistics; 2) after 1933 the reports of the Commonwealth Grants Commission (CGC) and 3) the analyses produced for the Premiers' Conferences of the early 1930s. In 1975 Andrew Podger used Finance Bulletins and the CGC reports to complete a database of Australian government social expenditure from 1901: A. Podger, 'Social welfare expenditure 1900–1970', in R. Mendelsohn, The Condition of the People: Social Welfare in Australia 1900–1975, George Allen & Unwin, Sydney, 1979 (hardback edition). In 1985–86 Alan Barnard published a series of Australian National University Source Papers in Economic History based on the Finance Bulletins that summarised Australian state and Commonwealth government expenditure and taxation from the first available records up until the early 1980s: Preliminary Statistics of N.S.W. Government Finances, 1850–1982 (No. 8, December 1985); State and Local Government Finances in Queensland, 1859–1982 (No. 9, December 1985); Tasmanian Government Finances, 1953 to 1982: A Statistical Survey (No. 14, December 1986); Finances of Western Australian Governments, 1851–1982 (No. 16, December 1986); The South Australian Budgetary Record 1850–1982 (No. 10, December 1985); Victoria's Fisc, State and Local: Preliminary Statistics (No. 15, December 1986). My analysis of public expenditure is based on Podger's collection and that of taxation on Barnard's work. There are some curious fluctuations in the figures reported by both scholars but a check of state-level statistical publications reveals that these were the totals advised by state governments at the time. In most cases I have expressed taxation and expenditure in 1911 prices based on a combination of the all-states 'A' and 'C' price indexes of the Commonwealth Bureau of Census and Statistics. I have then calculated per capita taxation and expenditure using the most recent Australian Bureau of Statistics historical estimates of state populations. The price indices are from W. Vamplew (ed.), Australians: Historical Statistics, Fairfax, Syme & Weldon, Associates, Sydney, 1987, tables, PC 10–15, PC 16–20. The population estimates are from Australian Bureau of Statistics, Australian Historical Population Statistics (Catalogue No. 3105.0.65.001), 2004. I have expressed monetary values in decimals rather than the archaic and confusing terminology of shillings and pence.
18. N.G. Butlin, Australian Domestic Product, Investment and Foreign Borrowing, 1861–1938/39, Cambridge University Press, Cambridge, 1962, table 13.
19. T. Skocpol, Protecting Soldiers and Mothers: Political Origins of Social Policy in the United States, Harvard University Press, Harvard, 1995.
20. G. Snooks, 'Government unemployment relief in the 1930s: aid or hindrance to recovery?', in R.G. Gregory & N.G. Butlin (eds), Recovery from the Depression: Australia and the World Economy in the 1930s, Cambridge University Press, Melbourne, 1988; B. Stevens, 'A Treasurer's problems', Australian Quarterly, no. 1, 1929, p. 23; Commonwealth Grants Commission (CGC), Second Report, the Commission, Canberra, 1935, p. 68; CPP, 1934–37, vol. 4, pt. 2. Record of the Conference of Commonwealth and State Ministers held...28th January to 5th February 1932, p. 29 (National Archives of Australia, Canberra, AS954/69, Item 2390/16).
21. Expenditure data are from Snooks, 'Government unemployment relief in the 1930s'. Unemployment levels per state are from the 1933 census scaled for 1930–32 and 1934–40 by the rate of trade union unemployment from Labour Reports.
22. CGC, Third Report, p. 75, CPP, 1934–37, vol. 4, pt. 2; May, Financing the Small States, table 4; Smith, 'Redistribution and federal finance', p. 297.
23. R.J. May, Financing the Small States in Australian Federalism, Oxford University Press, Melbourne, 1971, p. 91.
24. May, Financing the Small States, table 6 (b); J. P. Smith, 'Redistribution and Federal Finance', Australian Economic History Review, vol. 42, no. 3, 2002, p. 294.
25. Barnard, Australian Government Finances, p. 42; CGC, Second Report, p. 149.
26. Variance is the standard deviation divided by the mean.
27. Mendelsohn, The Condition of the People, p. 94.
28. B.E. Dollery & A.C. Worthington, Fiscal Illusion and the Grantor Government in Australia: An Indirect Test of the Flypaper Hypothesis, Federalism Research Centre, Australian National University, Discussion Paper No. 25, Canberra, 1995.
29. Castles, Working Class and Welfare, pp. 1–9; J. Hagan & K. Turner, A History of the Labor Party in New South Wales 1891–1991, Longman Cheshire, Melbourne, 1991, p. 138; CGC, Equality in Diversity; History of the Commonwealth Grants Commission, AGPS, Canberra, 1995, para. 5.54; J. Nimmo, 'The consumption standard', in F.W. Eggleston et al, Australian Standards of Living, Melbourne University Press, Melbourne, 1939, p. 181.
30. Webber & Wildavsky, Taxation and Expenditure, pp. 448–50; Lindert, Growing Public, p. 175; J.T. Patterson, The New Deal and the States: Federalism in Transition, Princeton University Press, New Jersey, 1969, pp. 162–63.
31. I do not count as a change of government the replacement of the Victorian Peacock Liberal ministry after the 1917 election by Nationalists who had been known as the 'Economy Party', but I do count the minority Victorian Labor governments formed after the 1924, 1927 and 1929 elections. The one-day Nationalist government of 20 December 1921 in New South Wales is also excluded. Information on changes of government is from: C. Hughes & B.D. Graham, A Handbook of Australian Government and Politics 1890–1964, Australian National University Press, Canberra, 1968.
32. E. Burke, Reflections on the French Revolution, Penguin, Harmondsworth, 1969, p. 351.
33. Record of the Conference of Commonwealth and State Ministers...10th August 1931 to 12th September 1931, Commonwealth Parliamentary Papers, 1929–32, vol. 2, p. 401. Taxation statistics are extracted from Barnard's compilations.
34. Platform of the Labor Electoral League of New South Wales (1892) in R.N. Ebbels (ed.), The Australian Labor Movement 1850–1907: Extracts from Contemporary Documents, Cheshire-Lansdowne, Melbourne, 1965, pp. 215–17; B. Nairn, Civilising Capitalism: The Beginnings of the Australian Labor Party, Melbourne University Press, Melbourne, 1989 (first ed. 1973), p. 138.
35. K. Kautsky, The Agrarian Question, Vol. 2, Zwan Publications, London, 1988, pp. 427–26; O. Bauer, The Question of Nationalities and Social Democracy, University of Minnesota Press, Minneapolis, 2000, pp. 405–06; K. Kautsky, The Labour Revolution, George Allen & Unwin, London, 1925, p. 211;Cairns, The Welfare State in Australia, p. 244; Barnard, Australian Government Finances, p. 22. CGC, First Report, the Commission, Canberra, 1933, p. 106; Mann, 'The sociology of taxation', p. 225; Barnard, Australian Government Finances, p. 25. Mann, The Sources of Social Power, Vol. 2: The Rise of Classes and Nation-States, pp. 387–88; Eggleston, Reflections, p. 149.
36. J. Larcombe, Labour Government and Financial Administration, Government Printer, Brisbane, 1927(?), pp. 2–5; J.P. Smith, Taxing Popularity: The Story of Taxation in Australia, Australian Tax Research Foundation, Research Study No. 43, 2004, p. 52. Harris, Australasian Income Tax, pp. 160–66, 176, 180. K. Wiltshire, 'Public Finance', in D.J. Murphy, R.B. Joyce & C.A. Hughes (eds), Labor in Power: The Labor Party and Governments in Queensland 1915–57, University of Queensland Press, Brisbane, 1980.
37. M. Leff, The Limits of Symbolic Reform: The New Deal and Taxation, 1933 -1939, Cambridge University Press, Cambridge, 1984, p. 115; Census of the Commonwealth of Australia, 30th June 1933, Government Printer, Canberra, 1936, table 28.3.
38. Barnard, Australian Government Finances, p. 25; J.H. Gilbert, The Tax Systems of Australasia, University of Oregon Monographs, Eugene, Oregon, 1943, p. 23.
39. Barnard, Government Finances, pp. 27–28; C. Cleary, Ballarat Labor: From Miner Hesitancy to Golden Age, the author, Epson, Vic., 2007, pp. 69, 245.
40. Variance is the standard deviation divided by the mean.
41. The 1938 estimate of taxable capacity is from the CGC (CGC, Sixth Report, the Commission, Canberra, 1939, p. 75; CPP, 1937–40, vol. 4, pt. 3). For 1911 I have applied the estimate of taxable capacity in 1919 by Leslie Giblin which is the earliest available (D.B. Copland, 'Some problems of taxation in Australia' (1924), in W. Prest & R.L. Mathews (eds), The Development of Australian Fiscal Federalism: Selected Readings, Australian National University Press, 1980, p. 40).
42. T. Matthews, Business Associations and Politics: Chambers of Manufacturers and Employers' Federations in New South Wales, Victorian and Australian National Politics to 1939, PhD thesis, University of Sydney, 1971, p. 286; G. Robinson, When the Labor Party Dreams: Class, politics and policy in New South Wales 1930–32, Australian Scholarly Publishing, Melbourne, 2008, pp. 66–72.
43. Barnard, Government Finances, p. 7.
44. There are gaps in the series for 1917, 1918 and 1920.
45. K. Deverall, They did not know their place": the politics of Annie Golding and Kate Dwyer', Labour History, no. 87, 2004.
46. Some very preliminary conclusions on the redistributive impact of fiscal policy are in G. Robinson, 'Public finance and income redistribution in interwar Australia: towards a class analysis, in Kimber, J., Love, P. and Deery, P. (eds), Labour Traditions: Papers from the tenth national labour history conference, pp. 165–169, Australian Society for the Study of Labour History, Melbourne, 2007.
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