The Obsession with Social Issues in Conservative Politics: What Happened to the Economy?
Over the past few decades, Australian conservatism has undergone a significant shift. Historically, right-wing and libertarian politicians championed free-market policies aimed at fostering economic growth and creating a level playing field for businesses. The theory was simple: lower taxes, reduced regulation, and a market-driven approach would create jobs and raise living standards for all. In other words, a rising tide would lift all boats. But starting in the late 1980s, particularly after the rise of Reaganomics in the U.S., conservative policies in Australia began to pivot toward a more populist, often socially conservative, and at times divisive agenda that increasingly placed social issues above the economy.
The roots of this shift can be traced back to the late 1980s, when the rise of Ronald Reagan’s economic policies — commonly referred to as Reaganomics — began to take hold. Reagan’s approach, which emphasized tax cuts, deregulation, and the belief that wealth would “trickle down” from the rich to everyone else, was adopted by many conservative leaders around the world. In Australia, Prime Minister John Howard’s government, which came to power in the 1990s, echoed many of these principles, championing economic reforms aimed at stimulating growth through deregulation and market liberalization.
For a time, these policies appeared to work, fostering an environment where businesses thrived, and economic prosperity was high. The focus on economic growth created jobs, reduced inflation, and saw a rise in living standards for many Australians. But as the years went on, conservative parties — both in the U.S. and Australia — began to move away from a pure economic focus and turned increasingly toward social and cultural issues.
By the 2000s, conservative politics in Australia had taken a turn. While John Howard’s government continued to push free-market reforms, the global influence of figures like George W. Bush and the rise of right-wing populism began to shift the conservative focus from purely economic issues to more culturally divisive ones. Leaders like Scott Morrison and Tony Abbott increasingly courted religious groups, placing issues like opposition to same-sex marriage, religious freedoms, and anti-abortion stances at the forefront of their agendas. This shift toward social conservatism, often driven by religious ideologies, began to eclipse the economic policies that had once been the hallmark of conservative governance.
Take, for example, the debate over same-sex marriage in Australia. Despite strong public support for its legalization (61.6% voted “Yes” in the 2017 plebiscite), conservative leaders like Tony Abbott were vocal in their opposition, framing it as a cultural issue rather than an economic or equality issue. This resistance wasn’t just about protecting religious freedoms — it became a partisan battle that alienated a significant portion of the Australian electorate, particularly younger voters and those in urban areas. Their ongoing obsession with attacking LGBTIQA+ communities is why myself and many people I know have been turned off voting for the Liberal Party our entire lives.
The problem with this shift is that it places social issues at the heart of political discourse, often at the expense of economic growth and stability. In an increasingly globalized world, Australia’s economy thrives on inclusivity, diversity, and openness to new ideas and investment. Policies that alienate certain groups or prioritize divisive cultural debates can make Australia seem less attractive as a place to do business, diminishing the very economic growth that conservative policies used to champion.
We’re also seeing the same trend play out on the global stage with figures like Donald Trump recently winning the US election. His policies, such as imposing tariffs and rolling back Diversity, Equity, and Inclusion (DEI) initiatives in workplaces, only exacerbate the problems we face today. Tariffs create trade wars that hurt both consumers and businesses, leading to higher prices and less competition. The DEI rollback weakens the workforce by removing protections and limiting opportunities for underrepresented groups. These policies isolate the U.S. economy, making it less competitive on the world stage and stunting the potential for future growth. It’s a stark reminder that policies which disproportionately benefit the rich — and leave out the majority — don’t just harm the poor but also hold back the broader economy.
What we’ve seen with many populist policies — whether in the U.S. or in Australia — is that they disproportionately favour the wealthy. Tax cuts for the rich, deregulation for large corporations, and policies that reduce social spending all widen the gap between the haves and have-nots. This has the effect of kneecapping greater opportunities for the middle and lower classes, leaving them with fewer resources to contribute to the economy. Meanwhile, a small group amasses greater fortunes off a smaller economic pie, leaving fewer opportunities for the rest of the population to thrive. As this goes on for many cycles, the economy shrinks, and the effort required to turn things around and grow again grows and grows.
For example, the tax cuts passed under Scott Morrison’s government, which largely benefited high-income earners and big corporations, created a situation where the wealth gap grew wider. At the same time, the broader economy didn’t see the trickle-down benefits that were promised, leaving average Australians struggling with stagnating wages, rising living costs, and job insecurity. While housing policies like negative gearing have created a great amount of wealth and prosperity for Australia middle class in the past, they’ve now left several generations of people behind and as the size of the baby boomer voting base diminishes they will be increasingly punished for this at the ballot box.
For me personally, I’ve never seen a conservative government in Australia that truly did the right thing for the most vulnerable — young people, LGBT people, and the poor and disabled. Conservative governments have often been more focused on ideological battles than on practical solutions that improve the lives of everyday Australians. However, the current political landscape in Australia is offering a real opportunity for change, especially considering the abysmal performance of Anthony Albanese’s government.
Albanese’s leadership, while well-intentioned, has felt like using a garden hose to fight a raging bushfire. The government seems to lack the courage to break with convention and implement bold policies that could really help those most in need — today. This has left many Australians feeling disillusioned with the current state of affairs.
If Peter Dutton can find a way to overcome his authoritarian leanings, avoid attacking trans people, and focus on policies that embrace the poor and middle class, he could potentially turn things around. By focusing on what truly matters — economic stability, affordable housing, job security, and a fairer distribution of wealth — he could deserve to win the next election. But that means moving away from the divisive rhetoric that’s currently dominating much of the conservative agenda and returning to a focus on policies that foster inclusive economic growth for all.
The shift from economic conservatism to social conservatism, especially after the Reagan era, has undermined the conservative movement’s credibility on the economy. If they want to win back the trust of voters and create an economy that benefits all Australians, conservative parties like the Liberal Party of Australia need to stop courting extreme religious groups and fringe ideologies — even if it’s by proxy through minor parties. It’s time for them to refocus on the economic issues that affect families and businesses — because, at the end of the day, a stronger economy benefits everyone, regardless of where they stand on social issues.
To regain their intellectual standing in the economic debate, conservatives must return to their roots: policies that encourage growth, innovation, and inclusivity. Only then will they be able to recapture the hearts and minds of the Australian people and create an environment where businesses thrive, families prosper, and the country as a whole can move forward.
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