The 1935 and 1984 elections were both key turning points. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The election of the first (wild) Labor government in 1935 established a social democratic Keynesian political regime that governed politics and decision-making thereafter. In contrast to this, the 1984 election of the fourth Labor (Lange) government overturned the Keynesian political regime and implemented neoliberal policies from 1984 to 1990. Governments have since implemented neoliberal policies at a slower pace until the present day . So, what is a “political regime”? “It is a concept used by political studies specialists to refer to government arrangements for addressing political problems” and, as such, includes “authoritative actions (executive orders, statutes, rules), institutional arrangements, alignments of interests, and shared ideas. '” The political regime is important in determining whether it maintains high or low levels of unemployment and whether it increases or reduces socioeconomic inequality. The first (savage) Labor government built a Keynesian political regime from 1935 to 1948. capitalist world caused deep recessions by creating growing socioeconomic inequality. Neoclassical economics would not provide the solution, John Keynes thought: “Markets are good servants but bad masters”. The Keynesian revolution was born which considered the capitalist market economy to be inherently unstable and crisis-prone, therefore the state had a legitimate role to play in redistributing income in order to change social inequality. Labor and national governments from 1935 to 1984 operated under broad parameters of a Keynesian political regime offering different views of politics. Keynesian policy worked well, the economy was booming, and unemployment was almost nonexistent from 1945 to 1973. Then the long postwar boom collapsed amid a global recession in the mid-1970s. There was high inflation, rapidly rising unemployment, and rising government debt. Keynesianism no longer worked. The neoliberal policy regime was introduced to address the global recession. The policy takes a monetarist approach by taking a narrow view of market failure and identifies government failure, reducing inflation and then maintaining it. Neoliberalism views the capitalist market economy as inherently self-adjusting. The fourth Labor government elected in 1984 implemented a neoliberal policy. Tax reform was the most important policy change. In the 1990s, families paid the same amount of taxes as a percentage of family income. The progressive tax system no longer existed. Below is a summary of governments from 1990 to 2008 on how they approached neoliberalism. Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essay Fourth National Government 1990 to 1999 Downsizing the welfare state Implement anti-union industry Social relations reform Reduce social spending Fifth Labor Government 1999 to 2008 Attempts the third way. A combination of neoliberal economic managements with a more interventionist approach The government's broad approach combines elements of Keynesianism and neoliberalism The fifth national government 2008 Worst financial crisis since the Great Depression; the government responded from 2009 to 2011 with Keynesian fiscal stimulus as an emergency response, followed by a return to the neoliberal emphasis on the need for.