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What is Fair
About a 'Fair Go'?
Peter Saunders
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Social
affairs intellectuals who equate popular support
for a ‘fair go’ with egalitarianism are out of
step with what ordinary Australians think ‘fairness’ means,
argues Peter Saunders
An egalitarian,
a meritocrat and a classical liberal once sat down to play
the board game, Monopoly. All agreed at
the outset that it would be fair to give each player the
same amount of cash with which to play. The egalitarian thought
this was fair because everybody should always have the same.
The meritocrat thought it was fair because it created a level
playing field on which everybody could compete. The classical
liberal thought it was fair because it gave nobody any special
favours (the same rules applied to everybody) and it violated
nobody’s property rights (since the cash at the start of
the game belongs to nobody). So the game began.
Within
quite a short time, pandemonium broke out.
‘This
is no longer fair!’, cried the egalitarian. ‘Some people
now have more money and property than others. Why should
I have to put up with Old Kent Road when
you are sitting there with Mayfair? We should redistribute to get back as
close as we can to the equal shares with which we started.’
The
meritocrat, too, was troubled: ‘I don’t agree that we
should all end up with the same amount, but I have noticed
that
those who have played with most skill
and who have taken the game most seriously are not being properly rewarded
by the fall of the dice. I have no money yet I have tried
hard to succeed. Surely
diligence and ability deserve more recognition than they are getting?’.
The
classical liberal sighed: ‘We have all played by the rules.
Nobody has cheated, and nobody has stolen anybody else’s
money or title deeds. Nobody pre-ordained
the present distribution of money and property—it is the aggregated outcome
of each individual’s free and uncoerced actions and decisions. How, then,
can this distribution be considered unfair? What would be unfair is if
we agreed by a
majority vote to take money or property from the most successful player
to share it out among the other two, or to give more to the player deemed
most deserving.
If we were to do that, we would undermine the principle that the same
rules must apply to all players. The best player would then probably
go elsewhere,
and our
game sooner or later would collapse into bickering and chaos.’
The
three players glared at each other, each wondering how
the other two could
be so naïve. Each player was convinced that their own definition of ‘fairness’ was
self-evidently correct. Compromise was out of the question, for it
was clearly impossible to share out the assets equally and to reward
the
most talented player
most highly and to leave everybody with the property to which they
had established just title.
Shaking
the dice and landing in jail, the meritocrat began to sulk.
Fined for landing on Mayfair, the egalitarian kicked the board over
in a fit
of righteous
indignation and began to draw up a petition. The liberal picked up
the dice, bade the other two farewell, and went off in search of
a
game of
Snakes and
Ladders.
The importance of ‘fairness’
Even in a diverse and pluralistic culture such as that
found in contemporary Australia, we need some common
values to bind us together. No society
can endure for very long by relying on brute force as the principal
instrument for coordinating
and motivating its members. Active cooperation and joint endeavour
normally requires some degree of social consent, and long-term
social stability
is unlikely in
a society lacking popular legitimacy. Consent
and legitimacy may be engineered and manipulated in a number
of ways, but in a democratic
society it generally requires that citizens
recognise
that the basic rules governing their relations with each other
are fair.1 This means
not only that people need to be convinced that the system of law
is just and that the system of politics is honest, but also that
they
accept
that the distribution
of material resources is appropriate. As Robert Nozick recognises, ‘People
will not long accept a distribution they believe is unjust. People
want their society
to be and to look just.’2
In Australia,
this concern with a ‘just
distribution’ has long been expressed
in the popular slogan of the ‘fair go’. Since the mid-19th century,
Australian political culture has emphasised the central importance
of a ‘fair’ distribution
of resources. Nowadays, politicians and pressure groups repeatedly
appeal to the principle of the ‘fair go’ to justify their policies,
or to undermine the policy positions of others, for they know
that proposals that fall short of this
ideal will struggle to attract support and may even get dismissed
as ‘unAustralian.’ The
fair go, then, is a core Australian political value. What is
not clear, however, is what it means.
The
origins of a ‘fair go’
The ‘fair go’ is a cliché, but it is a very powerful one.
Most of us would be hard-pushed to come up with a clear definition,
still less to identify the criteria
by which it might be recognised, but it retains enormous symbolic
significance because of its association with Australian national
identity. To be Australian
is to believe in the ‘fair go’, even if it is not always clear
what this means in practice.
The
origins of the ‘fair go’ ethic
can probably be traced to the mid-19th century.3 The
anti-transportation movement of the 1840s, for example, was
based in a principled
belief in free labour as an intrinsically fairer system of
organising work than
a master-servant relationship. The principle was that everybody
should have the same opportunity to work wherever and however
they wanted. Similarly, the 1851
decision in New South Wales to partition the gold-bearing
ground into equal lots, to give everybody a chance to dig
for gold,
and the anti-squatter movement of
the 1860s, which emphasised the value
of small-scale family farming over big squatter
domination of
the land, both contributed
to the idea that everybody should have the opportunity
to get access to wealth and to make what they
can of their lives
irrespective
of how they started out. The early rise of compulsory
and free education
in Australia also helped reinforce this belief
in individual opportunity
by ensuring that everybody could accumulate what
nowadays we call ‘cultural
capital’.
These
examples suggest that the ‘fair
go’ in 19th century Australia
was largely associated with a set of ethical
principles which today we would recognise as ‘meritocratic’.
The belief was not that everybody should end
up with the same shares (egalitarianism), but
was rather
that everybody should get the opportunity to
compete and thereby to improve themselves.
The competition must be open to all comers.
In
a meritocracy, rewards accrue to those who
make the most effort (by working hard and
seizing available
opportunities)
and who
display the most talent (as a result of undertaking
education and training,
as well as exploiting natural ability). The
meritocrat insists
that everybody should line up together at
the start of the race, but is
happy to accept as fair an outcome in which
all cross the finishing line in different
positions. It was
this ethic
that underpinned
the development of Australian political culture
in the second half of
the 19th century.
From
meritocracy to egalitarianism
In a recent book, Marian Sawer agrees that
the idea of the ‘fair go’ originated
in this belief in equality of opportunity, but she
argues that, at least by the time of Federation,
this had come to mean much more than simply
allowing people
to compete on an equal footing.4 Clearing away the
obstacles to fair competition was, she
says, seen as a necessary but not sufficient
condition for ensuring
that everybody had a ‘fair go,’ for some individuals
still lacked access to resources required to achieve
their full potential. According to Sawer, the meaning
of
a ‘fair go’ therefore evolved to include the use of
government powers to ensure that all citizens enjoy ‘the
opportunity to develop their full capacity’.5 Far
from being left free to make what they could of their
lives, ‘fairness’ required
state intervention in people’s lives on a considerable
scale.
As examples
of this more proactive and politicised pursuit of ‘fairness’,
Sawer points to early 20th century policies such as the
development
of the compulsory conciliation and arbitration system
(required to ensure that workers could counter
the power of employers and get decent wages and conditions),
and the introduction of non-contributory, means-tested
government pensions (required to ensure that
everyone could live at a decent standard even if
they fail to save or contribute to a pension fund during
their working lives).
Sawer
claims that policies like
these were still based in the idea of ‘equality of
opportunity’ rather than an
egalitarian ideal of engineering desirable social
outcomes, but this is not convincing. Interventions
designed
to determine what the level of wages should be in
different industries, or to finance pension payments
without
regard to issues of personal
entitlement, are indicative of a growing willingness
of politicians to fix distributional outcomes irrespective
of what individuals themselves might or might not
do to
better themselves. In short, a shift was taking place
away from meritocracy and towards egalitarianism.
In early
20th century Australia, this growing emphasis on egalitarianism
was one part of a broader strategy
of nation-building
intended
to overcome conflict
and strengthen internal solidarity by emphasising
cultural homogeneity and a sense of ‘belonging’ while
building barriers against ‘outsiders.’6 The
White Australia policy, for example, was designed
to
protect Australian workers from ‘unfair’ wage
competition from less prosperous
immigrants from less developed countries. Similarly,
high
import tariffs were
erected to protect
Australian producers against ‘unfair’ price
competition from abroad. The reinterpretation
of ‘fairness’ to mean state intervention
to undo the effects of competition
(whether from other Australians,
or from ‘outsiders’) provided the ideological
foundation for this national strategy.
Thus
Fred Argy (a self-confessed ‘pro-egalitarian’)
admits: ‘Australia’s
distinctive egalitarian society drew
its strength originally from industry
protection, wage regulation, immigration
controls, conciliation
and arbitration, a pioneering system
of old age pensions and “state
paternalism.”’7 Similarly,
Peter Saunders (no relation) has
observed: ‘The “fair
go” ideal is central to what it means
to be an Australian, now and as it
has been historically…this traditional
notion was built around the central
egalitarian idea of sameness, as
reflected in a social
and cultural homogeneity that found
expression in exclusionary trends
such as the White Australia policy
and the
disenfranchisement of
Indigenous Australians.’8
The
egalitarian reaction to liberal market
reforms
The nationalist-interventionist
agenda that spawned this egalitarian
interpretation
of ‘fairness’ has, of course, collapsed
in the last quarter of a century
to be replaced by a more open and
less regulated economic regime
which celebrates individual
diversity rather than fearing it. Embracing
competition, immigration and global
markets, both Labor and Coalition governments
have returned to more ‘liberal’ principles
of governance since the 1970s, and this has
meant a lesser role for the state in determining
distributional outcomes. Domestic producers
still enjoy some protection,
but much less than they did. Millions of workers
still have their wages and conditions fixed
by awards, but the scope of awards has been
limited and alternatives to
the award system have been opened up with Workplace
and Enterprise Agreements.
Reform
of social policy has lagged far behind economic
reform, however, and it is in
debates over the
future of social policy
that opponents
of reform
have
taken their stand. Denouncing ‘neo-liberalism’ and ‘economic
rationalism,’ left
intellectuals, politicians, welfare lobbyists
and trade union leaders have sought to rally
opposition to any further deregulation and
reform by appealing to the
traditional values of a ‘fair go’ society.
They claim it is ‘unfair’ (and therefore unAustralian) for
the government to scale down its regulation of market relations
any further, or to retreat any
more from its traditional role in fixing
distributional outcomes. Reform of the awards system is ‘unfair’,
for example, because it would allow some workers to earn
more than others. Attempts to reduce the number of people
reliant on welfare
payments, or to require them to undertake
some ‘mutual obligation’ activity,
are similarly ‘unfair’ because it violates
the principle that the government should
make unconditional payments to anybody who
needs them in order to reduce ‘poverty’ and
enhance ‘social cohesion.’9 Tax cuts likewise
are ‘unfair’ because they allow
people to keep more of what they earn and
therefore result in a widening of the so-called ‘income
gap’.
The
political activists and social affairs intellectuals who
argue in this way
(and
most of them do) show
no awareness of
any criterion
of ‘fairness’ other
than end-state equalisation.10 They
automatically think of fairness in distributional
rather
than procedural terms—as an outcome rather
than a set of rules. Peter Saunders, for
example, simply asserts that a ‘widening
gap in economic fortunes…disturbs
prevailing notions of fairness—particularly
in the context of a “fair go” society.’11
It matters not whether this ‘widening gap’ is
the result of some people working harder
than others, or of some people opening
up new market opportunities; the
mere fact that the result is greater inequality
of incomes is enough to condemn it as unfair.
What
is driving judgements like these is an unthinking and unreflexive
commitment to the
notion of fairness
as equality.
For the egalitarian
opponents of change, any
narrowing
of income
differences or increase in
government regulation or social
expenditure is
self-evidently ‘fair,’ while
any widening of income differentials
or reduction of spending on
services is obviously ‘unfair.’ And
there are many who argue this
way:
‘I sense a deep frustration among ordinary Australians that they are losing the
Australian ethos . . . We are at real risk of being “two Australias” . . . An
Australia that has the very rich and then the rest of us. The Howard government
simply doesn’t believe in a fair go.’
—Wayne Swan, Opposition Community Services Spokesperson 12
‘Growing inequality used to be seen as fundamentally unAustralian. Now it’s denied.’
—Michael Costello, former Secretary of the Department of Industrial Relations
13
‘If
it means anything, welfare is about a fair go for everyone
. . . Howard, Abbott and co will [find it hard] to show
that
the Australia we are defending is still the nation of a fair go for
all.’
—Ross Fitzgerald, Professor of history and politics, Griffith University 14
‘Historically, Australia has never before experienced such affluence . . . Why
can’t we share this wealth around . . . it’s
time to remember our proud tradition
of egalitarianism and a fair
go.’
—Cec Shevels, Chairman, Hunter Council of Social Services 15
‘The most commonly claimed characteristic of Australian society is its emphasis
on the “fair go” egalitarian
spirit. The sentiment remains
strong and
the perceptions enduring,
but the statistics tell a story
of deep poverty amid growing
affluence.’
—Peter Saunders, Director of the Social Policy Research Centre 16
The
idea that ‘fairness’ might be judged by any criterion other than end-state
equality never seems to occur
to these commentators.
Competing
principles of ‘fairness’
We saw at the start of this article
that there are at least
three different principles
of ‘fairness’ in our culture. Most social policy writers acknowledge only one—for
them, a ‘fair go’ means greater
equality of outcomes. But
they fail to understand how,
on some definitions, the
egalitarian
policies they espouse can
result in
greater injustice rather
than fairness.
- The
egalitarian definition of fairness focuses on the final
distribution of resources. Anything that flattens out the
distribution of income and wealth is
fair; anything that makes
it less equal is unfair. A less than equal distribution
can only be justified
if it can be demonstrated that no other pattern of distribution
could make the worst-off
people any better off (as in Rawls’s ‘difference principle’).17
-
Against this, a meritocratic definition of fairness focuses
on the principle of ‘just deserts’. Unequal outcomes
are fair provided everybody has had a chance to compete
on an equal basis. In particular, fairness requires that
the most
hard-working and talented
people should reap the highest rewards (meritocracy rewards ‘ability
plus effort’18),
and this will only
happen if there are
no major obstacles
blocking the achievement
of
meritorious individuals
from the least
advantaged backgrounds.
- In
contrast with both of these, the classical liberal conception
of fairness denies the relevance
of any distributional principle, whether egalitarian or meritocratic. Fairness
simply
requires an open system governed by the rule of
law; it is judged
by procedures, not outcomes. People must be free to accumulate
assets and to
transfer
them
as they
see
fit.19 Provided
these
rules
are followed,
the
result
is ‘fair’ (even
if talented
people
go
unrecognised
or lazy
people
are
favoured
by
luck
or by
birth).20
These
three
principles
of
fairness are
logically
incompatible
with
one
another. We cannot
maintain
that
equalising
people’s
incomes
through
a steeply
progressive
tax regime is ‘fair,’ for
example, if we
also think it is
fair
that people who
work hard should
be rewarded
more than
those who do not
(meritocratic fairness),
or that people
should be allowed
to keep
what
they have gained
through
voluntary exchange
(liberal fairness).
The
incompatibility of these three
principles of
fairness complicates
any attempt to
unravel what
Australians
mean when they
express
their support
for a ‘fair
go.’ What is clear,
however, is that
we cannot simply
assume that the ‘fair
go’ translates
as support for
any one of these
principles
as against
any other.
Our
social affairs
intellectuals
never doubt that the ‘fair
go’ means what
they want it
to mean—egalitarianism.
But while it
is plausible
to suggest
that many of
us are attracted
to
the ideal of
greater equality,
it is
also quite possible
that many of
us also approve
of
rewarding hard
work and talent,
and that we want
to protect the
rights of individuals
to enjoy what
is lawfully theirs
as a result
of market transactions
and private transfers.
Popular conceptions
of fairness are
likely to be
a
lot more complex
(and perhaps
contradictory)
than our social
affairs intellectuals
imagine when
they wax indignant
about
the loss of the ‘fair
go’ ethos. The
trouble is that,
until recently,
nobody thought
to ask ordinary
Australians what
they think ‘fairness’ means.
What
Australians
mean by a ‘fair
go’
In August 2003,
ACNielsen carried
out a survey
of public opinion
on behalf
of the
Centre
for Independent
Studies.21 The
survey included
three
questions designed
to measure
public support
for each
of the three
definitions
of fairness
outlined above.
As Table
1 shows, there was very
strong (85%)
public support
for a meritocratic
definition
of fairness
as reward
for talent and
effort, substantial
(60%) support
for a classical
liberal definition
of fairness
as outcomes
from voluntary
transactions,
and
moderate
(33%)
support for
an
egalitarian
definition
of fairness
emphasising
the reduction
of income
inequality.
Table
1: Support for
the three
definitions
of a ‘fair
society'
| Definition
of a ‘fair society’ (per cent) |
|
Classical
liberal
|
Meritocratic
|
Egalitarian
|
Strongly
agree
|
16
|
36
|
11
|
Tend
to agree
|
44
|
49
|
23
|
Neither
|
14
|
8
|
11
|
Tend
to disagree
|
20
|
6
|
37
|
Strongly
disagree
|
6
|
1
|
18
|
Source: Second CIS/ACNielsen
opinion survey (August 2003). N=467.
Classical liberal: ‘In a fair society, people’s incomes should depend on how
much other people value the services they provide’.
Meritocratic: ‘In a fair society, people’s incomes should depend on how hard
they work and how talented they are’.
Egalitarian: ‘In a fair society, nobody should get an income a lot bigger or
a lot smaller than anybody else gets’.
The assumption drawn by so many social policy commentators, that a ‘fair go’ necessarily
translates into popular support for greater income equality, is badly shaken
by these results. It is certainly true that if you ask a cross-section of the
Australian public whether they support greater equality of income and wealth
distribution, many will say that they do.22 But if you put an egalitarian option
to them together with the competing meritocratic and classical liberal options,
this support drops dramatically.
What
is also disturbing for those who equate popular support
for a ‘fair go’ with egalitarianism is that even the one-third
of people who support an egalitarian definition nearly always combine it
with support for one or both of the other two conceptions
of fairness
(even though these are logically incompatible with egalitarianism).
Only 1 in 20 Australians thinks fairness is solely to do with
achieving more equal outcomes (Table 2).23
Table
2: Support for multiple fairness principles
| Per
cent of population agreeing with: |
Classical
liberal only
|
2 |
Meritocracy
only
|
24 |
Egalitarianism
only
|
5 |
Liberal
+ meritocracy
|
36 |
Liberal
+ egalitarian
|
3 |
Meritocracy
+ egalitarian
|
7 |
All
three
|
19 |
Does
not agree with any
|
5 |
Source: Second
CIS/ACNielsen opinion survey (August 2003). N=467.
These
findings suggest that when egalitarian intellectuals
appeal to the Australian belief in the ‘fair go’ to justify
their arguments for greater equality of income and wealth,
they are misrepresenting popular conceptions of what
fairness means.
It is true that most Australians think that ‘fairness’ is an important
criterion of public policy, but this no longer means (if it ever did) that
they want
income differences flattened. This has significant policy implications,
not least in
respect of taxation.
A ‘fair go’ for
taxpayers
Egalitarian intellectuals generally favour increasing
taxes on higher earners, and they seem to imagine
that popular support for the ‘fair go’ ideal means
that most ordinary Australians agree with them. Peter
Saunders, for example, asserts
that higher taxes would make a ‘positive contribution to social justice’,
and he believes that the public supports him.24 But
the CIS/ACNielsen survey suggests
he is wrong.
When
they are told how much tax is paid by people earning gross
annual incomes of $30,000, $60,000 and $120,000, very few
Australians
think
it would be ‘fair’ to
raise these tax levels even further. Indeed, Table 3 shows that substantial
numbers of people think the current levels of income tax are unfair,
not because they
are too low, but because they are too high. Even when asked to consider
tax levied on high income earners, fewer than 10% of the public think
they pay
too little,
while 45% think they pay too much.
Table
3: Fairness and unfairness of current income tax levies
| Single
Person’s Annual Income (per cent) |
|
$30,000
|
$60,000
|
$120,000 |
Tax
paid is unfair (too high)
|
41
|
46
|
45
|
Tax
paid is fair & reasonable
|
58
|
51
|
45
|
Tax
paid is unfair (too low)
|
1
|
3
|
9
|
Source: Second CIS/ACNielsen opinion survey (August 2003). N=466 (low),
464 (medium),
466 (high).
Low: ‘A single person with no dependents who earns $30,000 a year loses about
20% of this ($5,830) in taxes and levies. In your view is this tax deduction
(a) Unfair (they should pay less); (b) Fair and reasonable; (c) Unfair (they
should pay more)?’
Medium: ‘A single person with no dependents who earns $60,000 a year loses
about 30% of this ($17,080) in taxes and levies. In your view is this tax
deduction (a) Unfair (they should pay less); (b) Fair and reasonable; (c)
Unfair (they
should pay more)?’
High: ‘A single person with no dependents who earns $120,000 a year
loses about 40% of this ($46,780) in taxes and levies. In your view is this
tax
deduction
(a) Unfair (they should pay less); (b) Fair and reasonable; (c) Unfair (they
should pay more)?’
Far
from lending support to the egalitarian conception of fairness, these results
seem to offer credibility to the classical liberal idea that people
should be
allowed to keep what they legitimately earn. Many Australians do think
taxation is unfair, but unlike the social affairs intellectuals,
they think people
are paying too much rather than too little.
Conclusion
All Western liberal democracies recognise the importance
of the principle of ‘fairness’,
but Australia probably emphasises it more than most. Our belief in the ‘fair
go’ has evolved to become part of our national culture, even though it
is not entirely clear what this term means.
In the
mid-19th century, a ‘fair go’ seems to have referred mainly
to the importance of opening up opportunities so that everyone
could compete. It was consistent
with what today we think of as a meritocratic ideal. In the early decades
of federation, however, governments increasingly pursued a national
agenda intended
to blur social divisions and build a strong sense of belonging and
sameness, and the ‘fair go’ ideal in this period came to
be identified with the political manipulation of distributional
outcomes associated with an
egalitarian ethic.
This national interventionist strategy has, however, been in retreat
for 30 years or more (although it remains relatively strong in the
area of social policy),
and survey evidence demonstrates that most Australians today have a
much broader understanding of ‘fairness’ than mere egalitarianism.
The ‘fair
go’ today still recognises the ideal of equalising outcomes,
but it also encompasses the competing ideals of meritocracy
(reward for effort and talent)
and fair exchange (the liberal principle of the right to private
property provided it has been acquired in accordance
with the rule
of law). The egalitarian definition
of fairness, which is taken for granted by the social policy intelligentsia
as the only relevant definition,25 does
not therefore do justice to what most Australians
mean by a ‘fair go’ in the contemporary period. Indeed, if our social
affairs intellectuals and pressure groups ever got their way, and
taxes and welfare benefits
were both raised even higher than they are at present in order to
narrow what they call the ‘income gap,’26 the
result would be the very opposite of what most Australians think
a ‘fair go’ entails.
Endnotes
1 We should not over-emphasise the importance of legitimation.
Nick Abercrombie and his co-authors suggest that social
order in modern societies can result from routine as much
as from active consent, for people rarely reflect on the
moral principles that underpin what they are doing. See
N. Abercrombie, S. Hill and B. Turner, The Dominant Ideology
Thesis (London: Allen & Unwin, 1980).
2 Robert Nozick, Anarchy, State and Utopia (Oxford: Basil
Blackwell, 1974) p.158
3 I am indebted to Geoffrey Blainey for these insights.
4 ‘Equal opportunity for self-development sounds individualistic
but did not imply an atomistic view of the individual or
the promotion of the individual and individual rights at
the expense of society. It did not mean the thin view of
equal opportunity found in American versions of liberalism,
where equal opportunity means equal rights to compete for
unequal rewards within an ethos of competition and minimal
government intervention. Rather it was premised on the interdependence
of individuals and the role of the community (with the state
as its collective agency) in achieving equal opportunities
for all its members’. Marian Sawer, The Ethical State?
(Carlton: Melbourne University Press, 2003), p.23
5 M. Sawer, p.36
6 The results of this strategy are still in evidence in Australian
public opinion. The 2001 Australian Election Study (available
from the Social Science Data Archive, Study Number 1048)
found, for example, that 58% of respondents thought Australian
society should be ‘a unified body pursuing a common
goal’, while only 19% thought it should be a ‘collection
of people independently pursuing their own goals’.
Asked whether government by its nature ‘is the best
instrument for promoting the general interests of society’,
60% thought that it was, while only 9% thought government
by its nature ‘threatens the rights of people and must
not be trusted’.
7 Fred Argy, Where To From Here?: Australian Egalitarianism
Under Threat (Crows Nest: Allen & Unwin, 2003), p.xii.
8 Peter Saunders The Ends and Means of Welfare (Port Melbourne:
University of Cambridge Press, 2002), p.202. The author is
Director of the Social Policy Research Centre at the University
of New South Wales and is not related to the author of the
present article.
9 As I have argued elsewhere, the Income Support system arguably
achieves quite the opposite—the social policy reactionaries
simply assume that it delivers social cohesion, for example,
when most of the evidence suggests it fragments rather than
unifies people. See Peter Saunders ‘A Self-Reliant
Australia, CIS Occasional Paper 86 (Sydney: The Centre for
Independent Studies, December, 2003).
10 Note that when pushed, most egalitarians recognise that
complete equality of incomes or wealth is undesirable and
unattainable. Fred Argy, for example, warns of a ‘threat
to Australian egalitarianism,’ but when he comes to
analyse this threat he acknowledges that ‘complete
equality of outcomes across households . . . is neither achievable
nor desirable’. (Where To From Here?, p.166). Claiming
to be ‘pro-egalitarian’ (p.ix), he defines egalitarianism
as social policies that (a) prevent any increase in economic
inequality and (b) create conditions which will result in
less inequality in the future. In other words, he wants to
move closer to complete equality of outcomes, even though
he has no desire to arrive at the ultimate destination (which
he says would be undesirable as well as impractical). He
never addresses this paradox by explaining how much inequality
we should be prepared to tolerate, and other egalitarians
are similarly unforthcoming. In general, social policy intellectuals
and welfare lobbyists cannot tell us how much equality ‘fairness’ requires,
but it is always a lot more than we currently have.
11 P. Saunders, The Ends and Means of Welfare, p.5
12 ‘No Australians Should Get Left Behind’ Daily
Telegraph (16 December 2002).
13 ‘Poor Live in the Shadows’, The Australian
(25 July 2003).
14 ‘Keep the Home Fires Burning’ The Australian
(13 March 2003).
15 ‘Enforced Business Will Not Do the Job’ Newcastle
Herald (19 September 2003).
16 P.Saunders, The Ends and Means of Welfare, p.3
17 John Rawls argues that a distribution of resources can
be considered ‘just’ (that is, fair) if it is
unequal only to the extent that the existence of inequality
increases the welfare of the least well-off (the so-called ‘difference
principle’). Put another way, distribution should be
as equal as possible without damaging economic incentives.
See John Rawls, A Theory of Justice (Oxford University Press,
1972). This ‘difference principle’ might in principle
help writers like Argy to identify a limit to their egalitarianism
(see note 10), but when it comes to practical policies, it
is still unclear in Rawls how much inequality we ‘need’ in
order to maintain economic growth.
18 Michael Young, The Rise of the Meritocracy 1870-2033 (Harmondsworth:
Penguin, 1958).
19 Nozick, Anarchy, State and Utopia.
20 The point is made forcibly by Friedrich Hayek: ‘Though
it may offend our sense of justice to find that of two men
who by equal effort have acquired the same specialized skill
and knowledge, one may be a success and the other a failure,
we must recognize that in a free society it is the use of
particular opportunities that determines their usefulness.
. . . In a free society we are remunerated not for our skill
but for using it rightly.’ F. Hayek, The Constitution
of Liberty (London: Routledge & Kegan Paul, 1960), p.82.
21 The survey drew a probability sample of 1,850 from a population
of internet users and achieved replies from 467 of them (a
25% response rate). Although the target population was somewhat
unusual as the basis for a national sample, and the response
rate was fairly low, the final achieved sample appears representative
of the Australian population as a whole when checked against
national data on age, gender, income, state and region, and
has not therefore been re-weighted.
22 A January 2000 Newspoll survey asked respondents whether, ‘Compared
with 10 years ago, do you personally think the distribution
of wealth in Australia currently is more fair or less fair?’.
Only 10% said it was more fair while 55% said less. But this
is a leading question, for it implies a distributional (and
therefore egalitarian) definition of ‘fairness.’ Ten
years earlier, the 1989/90 National Social Science Survey
asked a less biased question: ‘Do you agree or disagree
that differences in income in Australia are too large?’.
Again, support for egalitarianism was marked, with 55% agreeing
and only 20% disagreeing. People were then asked if ‘it
is the responsibility of the government to reduce the differences
in income between people with high incomes and those with
low incomes’, and 42% thought that it was while 33%
thought it was not.
23 Classical liberals can take little comfort from these
results either, for although 60% of the population endorses
the liberal fairness proposition, only 2% do so exclusively.
As I have argued elsewhere (Unequal But Fair?, London: Institute
of Economic Affairs, 1996), neither liberals nor egalitarians
can afford to ignore the intuitive appeal that meritocratic
conceptions of fairness have for the great majority of people
in modern liberal democracies. Liberals, for example, would
be well advised to re-think the strong statement of principle
from Hayek (see note 20), for most people would certainly
find it offensive if, say, hard work went unrewarded while
laziness was rewarded, irrespective of whether the rewards
were made or withheld voluntarily.
24 P. Saunders, The Ends and Means of Welfare, p.248.
25 The blindness of so many left intellectuals to alternative
conceptions of fairness is exemplified in Philip Mendes’s
remarkable statement that: ‘Neoliberalism’s real
agenda [is] to redistribute income from the poorest to the
most affluent, from the most needy in society to the least
needy’ (Australia’s Welfare Wars UNSW Press,
2002, p.47). Because the author is unable to extricate himself
from the distributional paradigm of fairness, he literally
cannot understand how classical liberal policies could ever
be considered ethical when they fail to endorse end-state
equality. This leads him to the conclusion that they must
be motivated by the desire to make people less equal!
26 See, for example, ACOSS, Closing the Gap, Federal Budget
Priorities Statement, Paper 112 (Australian Council of Social
Service, February 2001).
The
author
Peter Saunders is Director of Social Policy Research at
The Centre for Independent Studies.
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