The Global Financial Crisis peaked in 2008-09.
Since then, the ALP has relentlessly talked up the “strength” of our economy — by comparing to basket-case northern hemisphere countries — and by extension, the brilliance of their economic management.
Many hundreds of times, they promised a “return to surplus”. And fair enough too.
After all, our economy was — so they said — the “strongest advanced economy” in the world.
We had a “huge pipeline of investment”.
“Low interest rates”.
And record-high Terms of Trade (ToT), from a Chinese stimulus-fuelled mining boom.
A mining boom that — so they said — would give us a period of “unprecedented prosperity”, “stretching to 2050”.
They should know.
After all, their leader is fluent in Mandarin.
And yet, despite all this … no surplus.
Only more, and deeper deficits.
Yesterday, they admitted that their latest budget — released less than 3 months ago — has already developed a $33 billion black hole.
Word is, they are now going to call an election, for September 7.
So we should, perhaps, pause for a moment to reconsider the strength of our supposedly “strong economy”, according to the ALP’s own words, and their own yardstick.
In the August Economic Statement released yesterday, in one little paragraph, the ALP has conceded that 5 years after the GFC, the economy has not “recovered”:
And their newest revised forecasts, showing deficits to 2016/17, tells us that 3 more years of their brilliant economic management won’t help.
The simple truth is this.
By their own measure — a budget surplus — the economy has not “recovered”.
And with their revised “forecasts” now predicting rising unemployment, and no surplus till 2016/17, there is no hope in sight for an economic recovery.
Under their management, at least.