Josh Recessionerg was always going to kill Australia’s record growth run. He is far too attached to his surplus and appears to have no idea how bad things are in Australian economic structure. We can’t blame him for the virus but we can blame him for driving the Australian economy to stall speed before it struck, making it more vulnerable to the shock.
We, and many others, warned repeatedly that he was doing this. Recall that the pre-virus Recessionberg plan was to aim for surplus at all costs, drive down rock bottom interest rates and boost house prices for consumption growth. We were at the end of this rope already so the plan (if you can call it that) was to be boosted by huge numbers of warm bodies via mass immigration to force it to happen.
This was already failing pre-virus, with wages growth crushed by the immigration surge ensuring that no such consumption boost could come. After the virus, it is a joke. With no immigration now possible and mortgage relief a thing of the past plus productivity destroyed, a total becalming of the private sector is here and house prices will instead fall with consumption dragged down in their wake.
