We Are Quick To criticise....
It is funny that we recently laughed at the Doomsayers predicting the end of the earth but now when a couple of journalists claim we are heading for financial depression we all believe them.
Crikey Moses we have had one quarter of negative growth. One Quarter!
Does anybody remember we have just had some incredibly catastrophic occurrences in Australia? Hey the whole of Queensland was underwater almost at one point for crying out load.
You read things like "demand for iron ore and coal is falling off" "retail sales in decline" "Housing approvals down" "China is in economic meltdown" and hundreds of other reasons why we should beat Armageddon and get our ticket now.
Sure we had one quarter of negative growth but hey let's take all factors into considerations none less then unplanned for "Acts of God" (well unplanned by us that is).
It takes two back to back negative growth quarters to qualify for the term "Economy in recession" Even if that should occur there are recessions and there are recessions. It's not the term we need to worry about but the size of the term.
I totally agree with the Head of the Treasury when he said
There was nothing to change its view that the March and June quarters would be weak followed by "a strong rebound with very positive growth prospects in 2011-12 and 2012-13".
The economy of a nation is cyclical by nature, as all other things in life are.
We take the good times with the bad times and in Australia we seem to do that very well.
The slang term "She'll be right mate" is what has brought us through many hard times. Times of "droughts and pouring rains" to paraphrase Dorethea Mackellar.
One quarter of negative growth given the context it has occurred in should give no=one reason to be concerned.
We are in for one of the most exciting decades, economically, that I have experienced in my five decades of life.
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