The unprecedented economic growth sustained in the period following World War II to the early 1970s in the world, in Australia, and in particular, in South Australia fostered the growth of liberal education and emphasis on self-development and excellence of the individual. However, the growth in inflation from the modest levels of the early 1970s to the double-digit figures at the end of the decade has caused reappraisal of government economic policy; government is expected to contract, with the contraction to be more pronounced in social services and education. The current economic situation particularly in South Australia is seen as one where there is little growth together with no reduction in inflation and with increasing unemployment. In this situation, public funds for further education have been reduced in real terms and there has been a change from an emphasis on the total development of the individual to one on the development of marketable skills for the workforce. There is a change from an emphasis on a liberal education to one on a utilitarian education with a large demand for accountability in fund expenditure. Through the 1980s, the governments of Australia are placing their hopes on an economic recovery based on a boom in development. To that end, skilled technicians will be needed. The policy of further education should be to train and retrain adults for technical occupations. Utilitarian education, dictated by economic policy, is the educational policy of the future. (KC)