The Australian Welfare State from 1945 to 1996 Essay

The Australian Welfare State from 1945 to 1996 - Essay Example An overview of the history shows the different changes that were taken place by different governments from 1945 to 1996. Furthermore, Post-World War period and then the starting of Vietnam War in 1962 also hindered progress for the country. However, the major change that can be outlined would be the social reforms that were being taken place by various governments. On the basis of that we can say, while income inequality fell in the 1950s, and a bit in the 1970s, it was high during 1980s and 1990s (Leigh, 2005). 1950s was considered a golden period for Australia. Along with positive reforms carried out by Menzie’s government, Australia was rising from the after-effects of World War II and the economic and political environment looked much better, soon after the Vietnam War started and the political scenario again disproved. So we can say the causes of income inequality in the region could be many. It was more like a case of one thing led to another. Let’s classify these into two major changes that became the basis of the rising disparity of income. 1. Political and Economic Distress: The main reason was the political turmoil the country was going through. This would include: †¢ The declining power of unions, †¢ Less progressive taxes and income redistribution, †¢ The rise of technology (both in reducing the number of lower-skill jobs and in increasing the incomes of higher skill ones). †¢ The increasing trend of Globalization. Globalization exacerbates income inequality (Gaston & Rajaguru, 2009).