Because of the Liberal and Labor parties’ slavish dedication to earning the votes of outer-suburban swinging voters, we now find ourselves in a “cost of living” debate.

“Cost of living” is in this context a misnomer. The more accurate term is “cost of consumption choices”. This is about Australians’ expectations that their expensive lifestyle choices will be supported by governments. Actual poverty, where the cost of living has real, everyday consequences, won’t feature in the campaign. There are no votes in addressing poverty. This is about telling middle-income Australians that their high-consumption lifestyles are a matter of legitimate public policy focus.

Labor shamelessly exploited the issue in 2007, convincing voters they understood how tough they were doing it amid an unprecedented economic boom, high wage growth and consecutive tax cuts, and that John Howard and Peter Costello did not.

Howard throughout his prime ministership had played an important role in legitimising voters’ expectations that governments should support their aspirations to have a high-income lifestyle even if they didn’t necessarily have quite high enough income. Private health insurance was subsidised; private education was as well; middle-class welfare was doled out by the bucketload.

That those expectations ended up being deployed so effectively against Howard was one of Labor’s masterstrokes in that campaign.

The Liberals are now trying to pull the same trick on Labor in this campaign — express deep concern about the cost of living, and couple it with larger versions of the government’s “modest assistance” to “help make ends meet” — pumping up the education rebate, indexing child-care rebates.  If Labor had left the CPRS on the agenda, the Liberals would have pounded that as likely to drive up electricity prices.

Instead they themselves are being pounded, with the paid parental leave levy being heavily targeted by Labor, who have now successfully linked the issue to grocery price rises. If Labor can make the levy issue stick, it will be deeply damaging for the Liberals.

This is all rather unfair on Tony Abbott, because the PPL levy will have an absolutely minuscule effect on grocery prices. In fact it would be so small, it would be even tinier than the impact of the CPRS on prices, which was shown to be trivial — although Abbott, of course, gave the impression the CPRS would have caused a vast surge in prices. A nice case of what goes around comes around.

The next stage of the cost of living campaign won’t be so welcome from Labor’s point of view. The conventional wisdom is that when the RBA meets next week, it will hold the fate of the government in its hands, because a rate rise will spell electoral doom for Labor.

Maybe. But a 0.25% rate rise would leave the RBA’s cash rate target 2% below November 2007, and 2.5% below its March 2008 peak. Three of the Big Four banks did not automatically pass on the reductions in mortgage repayments occasioned by interest rate reductions  (NAB’s policy is to pass them on on the next anniversary of the loan). According to one bank, in the months following the interest rate cuts, fewer than 20% of customers took the initiative to reduce their mortgage repayments as the RBA hit the emergency button and sent rates into freefall.

Some of us doubtless subsequently did so, but it means the number of households facing actual increases in their mortgage repayments as a consequence of rate movements below the levels of two years ago — which next week’s will be, if there is one — is considerably fewer than appears to be assumed by commentators. It’s also one of the reasons why the argument that monetary policy was as important as fiscal stimulus in warding off recession doesn’t hold up — the RBA didn’t give us more cash to spend during the GFC because most of us just kept on paying our mortgages off at the same rate anyway.

It won’t be until the cash rate gets up to 7% that many of us will be looking at increases in our repayments. The only group to whom that doesn’t apply is households that have taken on a new mortgage in the past two years, who started with repayments based on interest rates at emergency lows.

That’s all mere detail, though. This is ultimately not about the real cost of living for people “doing it tough”, “trying to make ends meet”, “living within their means” and “setting their alarms early”. It’s about catering to the psychological and financial dependence of many voters on governments to prop up their lifestyles. As both parties have discovered in government, it’s awfully hard to ever satisfy these people, but they won’t give up trying to please them.