Thursday, September 10, 2009
Optimism Hits a Record High in Australia
It's probably hard for my American readers to imagine this is possible. I guess because we missed out on any kind of recession really (so far), just had a bit of a slowdown, when most of the rest of the world went into recession, has made Australians ultra-optimistic. We haven't had a recession for 19 years now...
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2 comments:
Are you concerned that when a recession comes (eventually it will) that Australians will fare well? I ask because in the US, recessions that occur ever 7-10 years seem to be blamed on someone then a knee-jerk reaction from the Govt to "rescue the people" seems to slow down recovery.
The economy slowed down here and unemployment went up by about 1 percentage point. Without the intervention of the government's stimulus package and the Reserve Bank cutting interest rates to 3% it probably would have been a lot worse. The Chinese stimulus program was also critical. So I don't agree that government intervention in recessions is bad (unlike the Austrian School of so-called economics). The US problem is that under Bush they were running deficits during a boom and now running even worse deficits which isn't probably sustainable in the long-term.
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