Modern Australian
The Times

why even competent politicians refuse to change policy course

  • Written by Richard Holden, Professor of Economics, UNSW

In light of Victoria’s COVID-19 resurgence, and with school holidays imminent, it might seem likely premier Daniel Andrews would tighten social mobility restrictions and his New South Wales counterpart, Gladys Berejiklian, would close the border with Victoria.

Read more: Victoria's coronavirus hotspots: not quite a second wave, but still cause for concern

But it’s unlikely either will. Here’s why.

Politicians have varying degrees of competence. We voters only learn about that over time, based on their track record. We draw inferences about their competence from their actions. Because of that, politicians are reticent to ever admit they were wrong.

Judging competence

Imagine, for simplicity, there are just two types of politician: competent and incompetent. The reality is more complicated, of course, but all useful models simplify reality. To paraphrase the celebrated British economist Joan Robinson, a map on a scale of 1:1 is no use at all.

Let’s assume both types have a chance of knowing the best policy course, though competent types are more likely to get it right.

All else being equal – factoring out policy positions, for example – voters would like to elect competent politicians.

In lieu of better information (or even with it), they draw inferences about competency from politicians’ public actions.

Consider a politician who is competent. Faced with a degree of uncertainty about the right course, they take a specific policy stance. Think of Andrews going for a harder lockdown in Victoria than other Australian states. Or Berejiklian insisting Queensland closing its border with New South Wales was a bad idea.

Read more: Grattan on Friday: Border wars split political leaders and embroil health experts

Or think of a stark example of incompetence, such as US president George W. Bush’s 2003 decision to invade Iraq and topple Saddam Hussein. Whatever one thinks of the decision – I consider it the then most significant US foreign policy mistake since Vietnam – the Bush administration believed it would bring democracy to the Middle East.

why even competent politicians refuse to change policy course US soldiers in central Baghdad in November 21, 2003. Damir Sagolj/Reuters

As Bush’s vice-president Dick Cheney said in the days just before the US invasion began:

My belief is we will, in fact, be greeted as liberators.

Then, as is wont to happen, new information arrives that casts doubt on the original decision. In the case of Iraq, it turned out Americans weren’t greeted as liberators, and toppling Saddam sparked a vicious and protracted civil war.

But did Bush reverse course?

He did not. A big part of the reason (along with neoconservative advisers like Cheney and Paul Wolfowitz being in his ear) was that to do so would be admitting he got it wrong.

Incentives to gamble

In the language of economics, this would have led voters to update their beliefs about the probability of Bush being competent.

This might sound blindingly obvious. But it is also a subtle point. Why wouldn’t voters, we might ask, reward a politician who says: “I messed up. I made the best decision with the information I had at the time. Now I have new information, and when I get new information I change my mind.”

But voters have limited information to figure out if a politician is competent. So while we know people do make mistakes, it’s also rational to consider a politician who admits to getting it wrong as less likely to be competent, because incompetent types are more likely to make mistakes.

Even when faced with new information, politicians thus have an incentive to “gamble” on the risky choice that vindicates their initial stance. By not changing course, they preserve their reputation with many voters as likely competent. In fact, “sticking to their guns” might even boost their appeal.

So it is that competent politicians may fail to admit their mistakes, even when they know they’ve messed up.

Doubling down

Back to the spike in COVID-19 infections in Victoria.

If Andrews reverses course and tightens social-distancing provisions, he will be implicitly admitting his government relaxed them too soon.

Similarly, if Berejiklian now says closing the border with Victoria is a good idea, voters will question her past stance on borders.

In both cases, the premiers may wish to gamble (to a degree) by doubling down on their positions.

Read more: Vital Signs: rules are also signals, which is why easing social distancing is such a problem

The perverse but logically inescapable possibility is this. Andrews and Berejiklian might well have been right all along. It might now make sense for them to change course. But doing so could damage their re-election prospects.

Maybe politicians have an even tougher job than we give them credit for.

Authors: Richard Holden, Professor of Economics, UNSW

Read more https://theconversation.com/vital-signs-why-even-competent-politicians-refuse-to-change-policy-course-141356

Chatswood Tutoring And Its Role In Academic Achievement

Academic success often requires more than classroom attendance alone. Students face increasing expectations as they progress through school, particu...

Why Laser Hair Removal Treatments Continue Growing In Popularity

Managing unwanted hair can become time-consuming and frustrating for many people, especially when shaving, waxing, and other temporary methods requi...

Choosing the Right Devices for a Flexible Workplace

For IT leaders managing large fleets, the device layer is where workforce productivity and security policy meet. The shift towards flexible and hybrid...

How Business Advisory Services Help Companies Achieve Sustainable Growth

Every business owner aims to build a profitable and sustainable organisation. While dedication, innovation, and hard work are important, achieving l...

Why Body Contouring Has Become A Popular Cosmetic Treatment

Many people maintain healthy lifestyles through regular exercise and balanced eating habits but still struggle with stubborn areas of fat that are dif...

How to Choose the Right POS Hardware for Your Business in Australia

A lot of Australian business owners spend weeks researching POS software but buy hardware almost as an afterthought. That's a mistake. The wrong har...

Why Material Handling Hose Is Critical for Industrial Efficiency

A high-performance material handling hose is an essential component in industries that transport abrasive, dry, or bulk materials on a daily basis...

How to Choose the Right Lawyer in Melbourne for Your Situation

Choosing legal support can feel difficult, especially when the stakes are personal or business-related. The right lawyer in Melbourne should underst...

Hoteliers Look to Clever Value Adds to Increase Revenue

The Australian hospitality industry is still in recovery mode after a notoriously rough patch in recent years. While there has been a post-COVID tra...

Moving to Queensland? Here’s How to Prep Your Car for the Big Move North

There’s no sign of the northern migration slowing down, with thousands of southerners fleeing from chaotic lifestyles and cooler climates for a brig...

Diesel Shortage to Impact Trades and Contractors

Strait of Hormuz blockage affecting all major parts of trades and construction Trades and construction across residential, commercial and industria...

Why Holiday Home Owners Turn to Rental Management Agents

The Allure — and the Reality — of Renting Out Your Property Owning a holiday home is a dream for many Australians. Whether it's a beachside sha...

Why Finding Reliable Doctors In Bundoora Is Important For Long-Term Health

Access to quality healthcare plays an important role in maintaining overall wellbeing and managing health concerns early. Trusted Doctors in Bundoor...

Understanding the Different Types of Car Services: Minor vs Major

When it comes to car maintenance, one of the most important things every vehicle owner should understand is the difference between a minor and a maj...

How Superannuation and TPD Insurance Work Together

Superannuation is an essential part of financial planning in Australia. It is designed to provide individuals with income during retirement, helping...

Tiny Towns funding granted for Mt Hotham and Mt Buller upgrades

Alpine Resorts Victoria (ARV) has welcomed funding support from the Victorian Government’s  Tiny Towns Fund, with both Mt Hotham and Mt Buller se...

Locksmith Services: Why Professional Security Solutions Matter More Than Ever

Security is a critical concern for homeowners, businesses, and vehicle owners alike. Whether it involves protecting a property, replacing damaged lo...

Why Tooth Fillings Are Important For Protecting Damaged Teeth

Cavities and minor tooth damage are common dental problems that can worsen if left untreated. Professional tooth fillings help restore damaged teeth, ...