John Singleton with Bob HowardRip Van Australia (Stanmore: Cassell Australia, 1977), p. 56-57, under the heading “Context”.

There is probably no concept more widely ignored, and with such disastrous results, as the concept of context. What it means, simply, is that in any attempt to answer a question, solve a problem, make a decision, one should consider all the aspect of the question, problem, or decision, and not just some of them. In particular, one should not only consider the convenient ones. In other words, one should learn to see, appreciate and consider the full context of the situation. It is too easy to come up with, for example, a solution to a problem that looks good and works well in a restricted context, but which has implications and consequences that, in a larger context, will turn it into a disaster. Politicians are most prone to make such mistakes. They think short term, living by expediency and compromise.

Examples of this error abound. On the most general level, the Left wing labor socialist people are so preoccupied with helping the needy, the underprivileged, the old and the sick that they tend to lose sight of the fact that before wealth can be redistributed it has first to be produced. Thus, the most important effect of all Australia’s welfare schemes is such heavy taxation and high inflation that it has brought the economy to the edge of complete ruin. In the small context, these schemes are successful in helping at least some of those they were designed to help. In the larger context and in the long run, by bankrupting the country they’ll help no one and bring only harm.

The Right wing Liberal/N.C.P. business people, on the other hand, have tended to devote their attention to keeping business afloat, and have not paid sufficient attention in the past to the needs of individual people. This is particularly true with regard to working conditions in businesses of all sorts. Not enough has been done voluntarily by business to give the employee a sense of participation, purpose, involvement and incentive. The trade unions capitalised on this, but they can’t see their noses either. Too often they demand so much for their members they bankrupt the businesses employing them. They kill the goose and then look for more eggs.

Government deficit spending and credit expansion have the short-run effect of stimulating the economy, but in the long run result in inflation, mal-investments and ultimately, a depression. Similarly, all victimless crime legislation, consumer protection legislation and considerations, and all fail in the long run.

We can see the evidence all around us. Short-run, out of context solutions to problems, are unfortunately, usually popular at the time they are first implemented. That’s why politicians love them.