While the conservative side of politics considers abandoning economic credibility for populism, voters are growing wary - if not weary - of the Rudd style. The early, euphoric symbolism of ratifying Kyoto and saying Sorry is being displaced by a harsh reality that Rudd is no messiah.

The truth is that governments have become so obsessed by the economy that they aren’t always aware of specific instances of “the limitations of markets”. And even at this early stage gaps are emerging between the Rudd Government’s ideals and its performance, with potential pitfalls abounding.

Today’s discussion paper will increase the pressure on the Rudd Government to consider calls by seniors groups for a $30-a-week lift in the singles payment, at a “conservative” estimated cost of $1 billion a year. The Treasurer, Wayne Swan, has fuelled speculation that the Government will act on the aged pension, conceding pensioners are “doing it tough”.