Across the West, incumbent governments have been falling, from New Zealand and the UK to the US – and most likely Canada later this year. While each government had its own flaws, common to all was broad public dissatisfaction with declining living standards amidst sustained inflation. Similar pressures face Australian governments.

Understanding why this is happening is important. The fact is much of the cost-of-living malaise in Australia is the result of often well-intended bipartisan policies that have expanded the role of government at the cost of long-term productivity.