How Australia achieved major social reforms
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In Australia, people overcame strong opposition to establish Medicare, improve child support payments, and lower trade tariffs.
Before 1975, Australia’s healthcare system largely relied on fees and private insurance, leaving many without adequate care. The Melbourne Institute of Applied Economic Research conducted research supporting a universal health plan, and after years of struggle, Gough Whitlam’s government passed legislation establishing Medicare in 1974, despite resistance from medical associations who created a fighting fund and spread misinformation.
Prior to the mid-1980s, securing financial support for children after divorce was difficult, with low compliance rates and many custodial parents living in poverty. Labor Minister Brian Howe appointed experts Bettina Cass and Meredith Edwards who proposed a system where employers would deduct payments directly from wages. Despite initial hostility from within the social security department, which even moved Edwards’ team out of their building, the team overcame obstacles and launched the child support scheme in 1988.
In the 1950s, Australia had high tariffs on imported goods. Academic economists like Max Corden and Dick Snape argued that these tariffs lowered living standards by raising prices. Through reports by the Productivity Commission and support from groups like the National Farmers Federation, Australia reduced its average tariff rate to less than 1% by 2017, though the Business Council of Australia and some within the Labor party initially opposed the changes.
These reforms demonstrate that lasting change requires persistent effort over decades, even when facing strong opposition from those with a vested interest in maintaining the status quo.
