I agree every government caused hyperinflation globally in response to COVID-19 which was an overkill and unnecessary. Albeit per the links I provided Australia was among the worst in the OECD for a drop in real living standards, whilst the others increased. This is a horrific stat, coupled with GDP per capita declines. So we are an outlier and this was under labor.
It indicates a poorly managed economy and also explains why we have lost entire industries over the last couple of years with a private sector decline offset by government debt funding a 20-25% increase in federal public servants in a mere 3 years. This is insanity and not sustainable. It’s obvious how hostile the business environment is given once iconic companies like WDS, BHP, RIO etc are all spending their large new capex budgets offshore, particularly the USA is very attractive given tax rates and less red tape. Something Australia is increasing while the rest of the world decreases it.
We should not strive to be at 100% debt to GDP like UK or USA. But our structural deficit baked in suggests we will now go there. We didn’t have to.
Myself as an investor, I’m now investing more offshore than here.
WDS Price at posting:
$21.58 Sentiment: Buy Disclosure: Held
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