Federalising Socialism Without Doctrine

Abstract

The Australian Constitution is only partly ‘liberal’ (securing political and economic liberties); another part is ‘socialist without doctrine’ (empowering governments to own and operate vast public capital, while providing social insurance in a market economy). That mixture is common in modern advanced economies but was anomalous in the Anglophone constitutional tradition in 1901. Legislative power over ‘old age and invalid pensions’, ‘railway construction’ and ‘conciliation and arbitration for the prevention and settlement of industrial disputes’ was an accepted part of the incipient Federal scheme but repugnant to Anglophone constitutional orthodoxy of the 19th century. The integration of ‘colonial socialism’ into the Constitution created one of the longest-standing puzzles in Australian jurisprudence, the Surplus Revenue Case of 1908, and laid the foundations for federal dominance of the Australian economy. Understanding the enduring impact of colonial socialism in Australian constitutionalism sheds light on how Australia’s distinctive political economy grew within a ‘Washminster’ system of government. It also provides principled guidance for future policy challenges that may require expansion of state involvement in the economy.