One Nation is Capitalising on Australians Amid Stagflation Fears
One Nation is capitalising on Australians’ economic anxiety at a rate unseen in recent political history. For three decades since Pauline Hanson’s first federal campaign, voters have experienced cycles of dissatisfaction with mainstream parties. However, the current political landscape presents a distinct phenomenon. Negative sentiment toward established parties has elevated One Nation to unprecedented polling heights, with Hanson’s net approval ratings now exceeding both the prime minister and opposition leader. This surge prompts critical examination of the forces propelling this political realignment.
The Stagflation Impulse Explained
Australian households are confronting economic headwinds reminiscent of the turbulent 1970s. That era witnessed concurrent high inflation and economic stagnation. Contemporary economists describe today’s climate as a “stagflation impulse.” Families experience this through compounding pressures: escalating living expenses alongside mounting concerns about employment security and financial resilience.
This economic malaise has intensified through Australia’s notoriously costly housing market. Younger demographics express particular exasperation at being progressively excluded from property ownership. Consumer sentiment indicators validate this pessimistic outlook. The Westpac-Melbourne Institute survey reveals Australians are experiencing what analysts call “deep pessimism.” Continued interest rate hikes continue to strain both first-home buyers and existing mortgage holders alike.
Strategic Political Positioning
While economic hardship has historically nurtured populist movements, this particular cycle exhibits distinguishing characteristics. Jordan McSwiney, a prominent scholar of far-right political movements, highlights a crucial differentiation. One Nation has effectively merged housing affordability grievances and wider economic challenges with immigration policy narratives.
Economic policy and housing are not really territories that One Nation is usually comfortable on. This kind of link between immigration and housing allows them to address issues that are very front of mind to people, like the economy, but address it from their preferred terrain.
McSwiney, serving as research fellow at the University of Canberra’s centre for deliberative democracy, elaborates on this strategic approach:
One Nation is doing a bit of a bait and switch, in that they use the context of housing and the economy to talk about what they really want to talk about, which is immigration.
The party has additionally aligned cost-of-living concerns with its enduring opposition to net zero emissions targets and renewable energy programs. This connection furnishes Hanson with another proven messaging vehicle that resonates with constituents.
Housing Affordability Dynamics
Australia’s housing crisis originates from interconnected factors. Decades of persistent undersupply, coupled with investor-favourable tax arrangements, have accelerated property valuations while marginalizing many residents. Homes did not abruptly become unaffordable. Government statistics demonstrate twenty-five years of price appreciation substantially exceeding wage growth trajectories.
Periods of elevated migration, which have recently moderated, generate immediate pressure on rental markets and housing availability. Simultaneously, they supply essential workers for construction, expand the tax foundation, and resolve critical skill deficits. Shane Oliver, AMP’s chief economist, stresses that policymakers must preserve equilibrium regarding immigration. Severe reductions could precipitate labour shortages and burden the economy with costs related to demographic ageing.
Voter Engagement and Political Outcomes
One Nation’s determination to attribute housing expenses and broader economic difficulties to immigration remains evident. Hanson contended during her National Press Club address last month that “immigration policy has our country in the state of crisis.” The Coalition has already directly associated migration volumes with housing supply, consequently validating One Nation’s policy framework. One Nation simply advances its argument more persuasively, whereas the Coalition remains internally divided.
The party has delivered its message directly to electorates through “engagement farm” initiatives that saturate social media channels. These operations advertise an effortless resolution to housing affordability without imposing financial burdens on voters.
A compelling question involves why the initial inflationary surge and cost-of-living escalation, commencing in late 2021, failed to produce comparable One Nation support. It was exclusively during the subsequent living cost increase, beginning late last year, that Hanson’s backing experienced dramatic expansion. Within this second inflationary phase, complicated by geopolitical tensions including the Iran conflict, households have accumulated inexpensive canned provisions and curtailed discretionary expenditure patterns.
