Malcolm Fraser was the Liberal and National candidate for prime minister of Australia in 1975. He won. Despite the "liberal" in the party name, Fraser's administration cut every kind of social expenditure (for the poor, for science, the arts, and education) but contributed lavishly to the military, farms, and businesses. He also raised the salaries of government workers, and most controversially, Fraser vastly increased the apportionment to Australia's secret police, the ASIO. Despite or because of these measures, unemployment increased over one percentage point from 1975-77 while inflation somewhat decreased. In 1977, another election was called for the benefit of the incumbent parties and they won again, defeating Labor decisively. Again, in 1980, Fraser was elected. Why did the Liberal and National party continue to win elections despite their decreased social spending? Probably because by 1980 inflation had fallen five percentage points since 1975 when Fraser first took office. It is...