The Great Economic Management Myth: Labor vs. Liberal

For decades, Australians have been fed a political myth—the notion that the Liberal-National Coalition is the superior economic manager. It has been repeated so often that it has become accepted as fact, despite mounting evidence that Labor governments have consistently outperformed the Coalition on key economic indicators.

As Australia once again finds itself at the top of the OECD under the Albanese government, it’s time to examine the historical record and expose the truth.

The Historical Record: Who Actually Manages the Economy Better?

GDP Growth and Economic Stability

• Under Hawke and Keating (1983-1996), Australia transitioned from a protected economy to a globally competitive one, with major financial reforms ensuring long-term prosperity.
• Howard and Costello (1996-2007) benefited from the mining boom but squandered much of the revenue on middle-class welfare rather than long-term investment.
• Rudd and Gillard (2007-2013) successfully navigated Australia through the Global Financial Crisis (GFC), implementing stimulus measures that kept the nation out of recession while other OECD nations floundered.
• Abbott, Turnbull, and Morrison (2013-2022) presided over stagnant wages, rising inequality, and mounting debt, all while continuing to push the narrative of fiscal superiority.

Debt and Deficits: Who Actually Leaves the Books in Better Shape?

• The Howard government, despite its surplus rhetoric, sold off public assets (such as Telstra) to artificially balance the books while neglecting infrastructure investment.
• The Rudd-Gillard government took on temporary debt to counteract the GFC—debt that was manageable and necessary to avoid recession.
• The Abbott-Turnbull-Morrison years saw record debt accumulation, reaching over $1 trillion, despite no major economic crises to justify such fiscal recklessness.
• The Albanese government has since reduced deficits and brought inflation under control, earning praise from the Reserve Bank of Australia and placing Australia back at the top of the OECD rankings.

Wage Growth and Living Standards

• Under Howard, wages kept pace with inflation due to strong economic conditions, but workplace reforms like WorkChoices threatened job security.
• Under Rudd and Gillard, wage growth was steady, and cost-of-living measures such as Medicare expansions helped working Australians.
• The Coalition era (2013-2022) saw wage stagnation despite rising corporate profits, pushing real incomes lower.
• Albanese’s tenure has seen a return to real wage growth, with policies focused on lifting minimum wages and reinvesting in domestic industries.

The Verdict: Facts vs. Political Spin

The notion that the Coalition is the better economic manager is a myth unsupported by historical data.

Labor governments have consistently delivered stronger GDP growth, better wage outcomes, and more responsible debt management. The Liberals, on the other hand, have relied on mining booms, asset sales, and corporate handouts while overseeing record debt and wage stagnation.

As Australians head to the polls, voters should ask themselves: do they want a government that invests in the nation’s future, or one that prioritises corporate welfare while spinning a decades-old lie about economic competence?

Source List:
Reserve Bank of Australia – https://www.rba.gov.au/media-releases/2025/mr-25-03.html
Australian Bureau of Statistics – https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release
Australian Treasury – https://treasury.gov.au/media-release/budget-2024-25
OECD Economic Outlook – https://www.oecd.org/economic-outlook/
The Guardian Australia – https://www.theguardian.com/au
Australian Financial Review – https://www.afr.com/