Eslake: The ponzi is over

Via Bloomie:

Australia’s almost three-decade expansion — a developed-world record — has largely depended on four key factors that economist Saul Eslake says are unlikely to remain completely intact in a post-Covid-19 world.

  • Population growth, underpinned by immigration
  • A “peculiar relationship” with China
  • The housing boom and the debt run up along with it
  • Good economic policy, at least by comparison with most other advanced economies

“The first three of those I say ‘yep, aren’t gonna be there,” said Eslake, who has studied the Australian economy for four decades. “I still think you can argue that economic policy making has been better in Australia than a lot of other countries. I think that’s still true. It’s probably not better by as big a margin as it used to be.”

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