Some of you might want to have a look at how long it took Japan to recover after the asset bubble collapsed in 1989. For a start it took the stockmarket more than 10 plus years to get back to 1989 levels. As I said in this post: Post #: 43836330
"What needs to be done is ditching the pure laisser faire economics approach the way Australia has been implementing it last 30 years, and returning back to some form of understanding around the long term benefit of investing in iconic infrastructure and developing a manufacturing industry in Australia.
Even the land of the free, protects its industries. So, you are still in a capitalist system without been an idiot and giving all your high value adding industries away to other countries, and then waiting on them to help sort out worldwide issues for you when things go wrong. Look at COVID-19: Relying on other countries to give you face masks, ventilators, medicines, the list goes on etc etc.
Australia use to be self sufficient in a number of things until pure laisser faire economics took hold here and destroyed a number of our industries on the path to globalistion. I suspect a number of world wide governments would be re-evaluating their viewpoints on globalisation too IMO.
In terms of the budget, well it will be shot and I see that the Adults in Charge have been throwing money around just like Rudd did during the GFC (but not as targetted as Rudd in trying to stimulate economic activity - whether you like school halls initiatives back then etc provided immediate work in the now, not some supplement to the dole which many will not spend IMO or business offsets that might not do much in the now because the only thing that matters is stimulating the economy but at this stage the economy is been shutdown, so where do you spend your money right now??, and whether its heart can be started quickly or not is another thing once COVID-19 disappears).
I see many of the posters on here who use to give Rudd a serve are been quiet of late too. Also, ditch the $100 billion submarine program you fools and use that money wisely. Time will tell whether Morrison's measures will avoid a deep recession in Australia or not when COVID-19 is brought under control.
And before anyone yabbers labour costs, just be mindful for a number of manufacturing processes in high end markets the main cost is electricity not labour at all."
If we lose more businesses in the primary and secondary sector as a result of COVID-19 well it will have implications for the services sector, because the Australian economy cannot be based on us selling coffee and takeaway meals to each other on bicycles working at night. Given the income to house price ratio has skyrocketed in teh last 15 years, and now with unemployment rising, meaning workers will accept further wage cuts to stay in a job, the only direction is for house prices to come down (and lets hope the negative equity that follows for many doesn't lead to an asset bubble bursting with spiralling down in asset values as happened in Japan back in 1989).
With interest rates so low, even that is not stimulating the economy of late. Best explained by the afct inflation is still quite low, and the whole idea of low interest rates is spend spend spend, leading to demand pressures and then pushing up inflation rates and interest rates to what economists refer to as 'normal levels' and the unemployment rate to the 'natural rate of unemployment'. I think that is what they seem to yabber about, but printing money I never got why, apart from pretending your country is richer than what it is, a bit like that Zimbabwe note all those years ago with all those zeros but was worth SFA.
