A Moment Between Stories

There are moments in history when the story a society tells itself no longer holds.

When the rules that once made sense; about debt and sacrifice, markets and merit, taxes and worth, feel more like a cage than a compass. When we find ourselves working harder but falling further behind, told there is “no money” while resources sit idle, and real people struggle to meet the basics.

Australia stands at such a moment now.

The recent election gave Labor a renewed mandate. But beneath the vote is a deeper undercurrent; people are searching for a politics that feels real. One that speaks not in sound bites, but in shared truths. That meets the cost-of-living crisis not with moralising, but with imagination and care. That sees government not as a bookkeeper, but as a tool for shared flourishing.

I write this not as an economist or politician, but as someone watching the threads fray in my own community, among friends, families, and everyday people. As someone who believes we can do better, because I know we already have the tools, the people, and the means.

We need a new story.

We need a story grounded in the dignity of each person to shape their life. One where the government uses its full power, not to serve markets, but to serve us. One where sustainability isn’t an afterthought, but the foundation. One where no one is left behind, because no one is above or beneath.

“The only way to deal with an unfree world is to become so absolutely free that your very existence is an act of rebellion.”
— Albert Camus

We are not powerless. We are not broken. But we are overdue for a reckoning, with the old myths, and with ourselves.

This proposal is an invitation: to reclaim the future, not just from climate breakdown, inequality, or austerity, but from the narrow imagination of what we’ve been told is possible.

The Problem

Old Myths, Real Consequences

Australia is often called “the lucky country”, but the phrase was never meant as praise. When Donald Horne wrote those words in 1964, it was with biting irony. He warned that a nation blessed with resources and peace was being led by the mediocre and visionless.

Today, that critique feels sharper than ever.

Our economy looks strong on paper, yet millions feel precarious. Home ownership drifts further out of reach. Essential services strain under privatisation and underinvestment. The climate swings wildly. Wages have stagnated. And we are told, repeatedly, that nothing more can be done.

Why? Because of a simple, powerful myth: that the federal government is like a household, and must “live within its means.”

It sounds reasonable. Responsible, even. But this story conceals more than it reveals. It leads us to believe:

• We must choose between helping people and balancing the budget.
• Every dollar spent must be matched by tax or cuts elsewhere.
• Large-scale public investment is reckless, unless it’s for defence or fossil fuels.

These assumptions bind our politics in artificial constraint. They ignore the real capacities of a sovereign currency issuer, a government that can create money to mobilise resources for public purpose, without relying on prior taxation or borrowing from markets.

Losing Our Public Self

“The greatest hazard of all, losing one's self, can occur very quietly in the world, as if it were nothing at all.”
— Søren Kierkegaard

This quiet loss; of public imagination, of democratic confidence, of our economic agency, is the true crisis we face.

It is not a crisis of resources, talent, or opportunity.
It is a crisis of narrative.

The old story says we must tighten belts while the planet burns and our neighbours suffer. It asks us to applaud surpluses while hospitals collapse. It moralises scarcity while hoarding abundance.

It is time to end this fiction.

The Framework

A New Foundation

If the old story no longer serves us, what should take its place?

We don’t need utopia. We need clarity, courage, and connection, a new foundation for public life that is both bold and practical.

This proposal brings together three transformative lenses:

• Modern Monetary Theory (MMT) — a lens for public finance and full employment
• Sustainable economics — a guide to living within planetary limits while securing wellbeing
• Nordic-style institutions — a model for equality, trust, and universal services

Together, these lenses offer not a single ideology, but a coherent path forward, one that responds to the realities of our time with tools that already exist.

1. MMT: Sovereign Spending for Public Purpose

MMT is not radical, it’s descriptive. It explains how modern money systems work in countries like Australia, which issues its own currency.

The founders of MMT; Warren Mosler, Andy Wray and our own William Mitchell have been advocating for this understanding since the 1990s and recently Stephanie Kelton, through her book, The Deficit Myth.

We can never run out of money, only out of real resources.

That means:

• Government spending can fund what we can do, not just what we can afford
• Taxation is a tool to manage inflation, shape behaviour, and reduce inequality, not a funding source
• Full employment is a policy choice, not a natural outcome of market forces

This gives us the power to:

• Guarantee dignified, meaningful work through a federal Job Guarantee
• Invest in care, infrastructure, and transition industries without begging markets for permission
• Respond to crises; climate, housing, aged care, not with hand-wringing but mobilisation

“Waste no more time arguing what a good man should be. Be one.”
— Marcus Aurelius

We are not lacking in options. We are lacking in will and understanding.

2. Sustainable Economics: Growth for What, and Whom?

Climate breakdown and ecological overshoot are core economic facts.

A sustainable economy:

• Centres human and ecological wellbeing, not endless GDP growth
• Invests in regenerative systems: renewable energy, public transit, local food networks
• Recognises the value of care work, creative labour, and time, not just consumption

We must move beyond outdated economic myths that prize endless growth over well-being. Inspired by Kate Raworth’s Doughnut Economics, we can reimagine well-being not as perpetual expansion, but as thriving in balance: socially just and ecologically safe.

In a country with abundant resources, skills, and capacity, why are so many still forced to scramble for the basics?

3. Nordic-Style Institutions: Trust, Universality, Dignity

The Nordic countries show what’s possible when:

• Public services are universal and high quality
• Taxation is transparent and progressive
• Trust in government and fellow citizens is high

They prove:

• Strong unions and thriving businesses can coexist
• Inequality can be reduced without sacrificing prosperity
• Freedom and equality can be aligned, not opposed

Adapting these principles to Australia means:

• Restoring universal access to healthcare, education, and aged care
• Decentralising services for local strength with national standards
• Rebuilding trust through transparency, co-governance, and dignity

A series of essays brought together in the Australian Institute's book, The Nordic Edge: Policy Possibilities for Australia, explore policy options that may fit into Australia's society.

In a sovereign monetary system, taxation does not fund spending, but it shapes our economy and society.

Used wisely, taxation can:

• Cool inflationary pressures
• Reduce extreme wealth concentration
• Build collective buy-in to strong, inclusive institutions

“At the bottom of enmity between strangers lies indifference.”
— Søren Kierkegaard

We must care enough to build something better, together.

Why Now

The Australian Opportunity

Australia stands at a crossroads; not just politically, but socially, economically, and ecologically.

The Labor government has been returned with a mandate for stability, decency, and renewal. But a mandate alone is not a plan, and good intentions are not enough if they remain constrained by outdated economic thinking.

We face serious challenges:

• A cost-of-living crisis
• A housing system that rewards speculation
• A climate crisis demanding structural transformation
• An ageing population and exhausted care systems
• Declining public trust

These are also opportunities, to rethink what we owe each other and what we’re capable of.

The ground is shifting:

• Public appetite for meaningful change is rising
• Old stories of austerity and permanent scarcity are wearing thin
• Governments globally are realising markets alone can’t solve systemic crises

We now have the chance to build a new common sense, one that:

• Recognises true fiscal capacity
• Elevates wellbeing and ecological balance
• Delivers services that foster security, belonging, and trust

“The task must be made difficult, for only the difficult inspires the noble-hearted.”
— Søren Kierkegaard

This is not about utopia.
It’s about getting real.

Australia has the tools.
We have the talent.
We are not short on money, we are short on space for community imagination to take root, to breathe, and to shape the nation we could become.

Call to Action

Reclaiming the Future Together

We are not starting from scratch. Across Australia, people are already building the future we need.

Examples include:

• Community-led renewable energy projects
• Local food cooperatives and urban gardens
• Mutual aid networks
• First Nations-led land stewardship

What we need now is to connect these efforts into a cohesive movement.

This proposal is an invitation to:

• Engage in conversations within your communities
• Support and amplify local initiatives
• Advocate for aligned policies
• Collaborate across sectors and ideologies

Let us reclaim our future, not through division, but through unity; not through despair, but through action.

Together, we can build an Australia that is sovereign, sustainable, and centred on human dignity.

Key Terms & References

Modern Monetary Theory (MMT)
A macroeconomic framework that describes how sovereign currency-issuing governments (like Australia) can use public spending to mobilise real resources for public purpose. MMT explains that such governments cannot "run out of money" like a household can. The real constraint is inflation, not budget deficits. Core to MMT is the understanding that taxation does not fund spending, but helps manage inflation and shape the economy.

Heterodox Economics
An umbrella term for schools of thought that challenge mainstream (neoclassical) economics. This includes MMT, ecological economics, institutional economics, post-Keynesian, and feminist economics. Heterodox economists often critique assumptions like market efficiency, rational actors, or the primacy of GDP growth.

Doughnut Economics
A visual economic model developed by Kate Raworth. The doughnut represents a “safe and just space for humanity”, between a social foundation (basic needs and rights) and ecological ceiling (planetary boundaries). It encourages regenerative, distributive economies rather than extractive, growth-driven systems.

Job Guarantee (JG)
A policy proposal associated with MMT where the government offers a standing job to anyone willing and able to work, at a living wage, doing socially useful work. It acts as an automatic stabiliser, increasing employment during downturns and easing pressure during booms, while supporting full employment and price stability.

The Lucky Country
A book by Donald Horne, published in 1964. Though often quoted positively, the title was meant ironically, Horne critiqued Australia for relying on its natural wealth and inherited institutions rather than visionary leadership or innovation. His concern was that mediocrity, not merit, governed public life.

Nordic Model
A blend of free market capitalism and strong welfare states as seen in countries like Norway, Sweden, and Denmark. Characterised by high taxation, universal public services (health, education, care), strong unions, high trust in government, and reduced inequality. The model shows that equality and economic dynamism can coexist.

Sovereign Currency Issuer
A government that issues its own currency (e.g., Australia, UK, US) and does not borrow in a foreign currency. Such governments are not revenue-constrained and can fund programs by crediting bank accounts, subject only to real resource limits and inflation, not tax revenue or bond issuance.

Full Employment
The condition where everyone who wants to work at a living wage can find employment. In heterodox economics and MMT, this is seen as a policy choice rather than a market outcome. A Job Guarantee is one tool to achieve it.

Inflation Constraint
The idea that the real limit on government spending is inflation, the risk of too much money chasing too few goods or services. MMT acknowledges this constraint and proposes mechanisms like targeted taxation, resource mapping, and production planning to manage it.