To tackle economic rationalism we need to understand how it got its grip on government and why. We need to understand the roots of its power, how it influences decision making and why it continues to be powerful despite the community outcry. It is often claimed that economic rationalism is driven by a small group of powerful vested interests. That behind a cloak of secrecy, powerful business interests are controlling the agenda. But the conspiracy theories are misplaced. The reality is less sinister and more difficult. To understand its stranglehold on power, and to tackle it effectively, it is necessary to understand the black box of government. We need to understand how decisions get made and why economic rationalism is so dominating.

How governments make decisions

The way governments make decisions is an imprecise science. The entangled interactions of the bureaucracy, politicians and lobby groups pump out hundreds of decisions a week. Which of the three groups has the upper hand in any decision depends on the issue. The bulk of government decisions are bureaucracy led. That is, the bureaucracy will tell the politicians there is a problem, devise a plan to fix it and ask to be authorised to do the job. The politicians usually agree. Sometimes the politician will have a personal view on the issue and over-ride the bureaucrats. At other times lobby groups will get in the politician's ear and convince them to take a different approach.