Where "Economic Rationalism" Comes From
The term was coined and popularised by sociologist Michael Pusey in his 1991 book "Economic Rationalism in Canberra: A Nation-Building State Changes Its Mind," published by Cambridge University Press. The book analysed how the Canberra policy apparatus had been taken over by neoliberal economic thinking, and warned of the social costs of free-market reform. When the book launched in August 1991, it started a national debate and firmly established the phrase in Australian political vocabulary.
"Economic rationalism" became the Australian label for what other English-speaking countries more commonly called Thatcherism or Reaganomics — a package of market-oriented reforms involving privatisation, deregulation, and public sector cuts. The term was reshaped by both major parties during the Hawke, Keating, and Howard eras. By the 1990s it was being used by critics and supporters alike — though usually with a negative edge, the word "rationalism" implying that only one kind of reasoning was allowed into the room.
Source: Cambridge University Press — "Economic Rationalism in Canberra" (Pusey, 1991)
"The wave of economic rationalism in the 1990s led to the privatisation of major state banks and utilities."
How Aussies Actually Use It
Commonly used by journalists, economists, and political commentators discussing late 20th-century Australian economic history.
Often carries a critical tone regarding the decline of public infrastructure or regional services.
🎓 Want to sound like a true Aussie?
Watch Down Under English on YouTube for real Australian pronunciation, slang lessons, and culture — taught by an Australian educator.
Watch on YouTube →