Category Archives: Tax and spend

An electorate than thinks government does too much, except for all the areas in which it does too little

Today’s Essential Research poll highlights the perils of trying to draw any specific policy conclusions from public opinion on high-level questions.

First, its respondents were asked about the size of government, and the answer suggested that perhaps a large number of voters had suddenly converted to classical liberalism:

But more specific questions suggest that the vague feeling that governments are too big does not translate into wanting government to do less in key areas of activity. In every proposition put to the Essential respondents, a plurality wanted the government to do more, and in most clear majorities wanted the government to do more. The 44% of respondents who earlier in the survey had thought government did too much shrank to a constituency of between 1% and 10%.

This is why governments have so much trouble cutting spending, and why genuine ‘tough budgets’ are very rare.

What drives tax and spend opinion?

The latest ANU Poll finds, like all such polls in recent years, that given a choice between reduced taxes and increased spending on services, most people would go for the latter. Report author Professor Ian McAllister observes:

Public opinion on government spending tends to be both secular – in that it is largely unrelated to
partisan debates and changes in government – and cyclical – in that it is responsive to broader
economic conditions. For example, on the latter point, it has often been observed that national
electorates are more likely to favour spending on social services and welfare when economic conditions
are benign, and to favour reduced taxes when economic conditions become harsh.

I agree, having argued for this interpretation in a 2004 paper. But a few years ago Professor McAllister thought that other factors were at work. In a newspaper report on the 2007 version of the tax and spend question, he was reported as saying that: Read more »