Australia appears set to make the biggest policy mistake possibly since Federation – wilfully eroding our national savings pool in our greatest hour of need.
Twelve years ago this week the global banking behemoth Lehman Brothers collapsed, triggering what was the biggest economic crisis since the Great Depression.
Fortunately, trenchant Liberal opposition to Labor’s stimulus did not succeed and Australia emerged a world economic leader.
While fiscal and monetary policy acting in unison were critical to our economic recovery that led the world, Australia also had a secret weapon thanks to a previous Labor government – our world-leading superannuation system.
When Lehman Brothers collapsed the global banking system teetered on the edge. Thirty major banks were bailed out, all G7 economies recorded negative growth, and the credit implosion entangled both public and private finances in a ‘doom loop’ threatening to collapse the global financial architecture.
No comments:
Post a Comment