I sense some here may be under-estimating the scale of this economic shock. We have to go back at least 90 years to find something this big. Some data suggests significantly further back
https://www.ft.com/content/734e604b-...c-19e8b22dad3c
Australia faces extra challenges against this global backdrop
1. In the 1920's, UK dominated Australia's trade. Today, it is China - and China is making it clear that it will bring economic pain to any country that criticises it.
2. Back then we had a diversified economy and were fairly self-reliant. The major parts of our economy today are
a) importing migrants (to keep wages low)
b) overseas "students" (often also with work rights) - gone for the foreseeable future
b) buying and selling houses to each other
c) iron ore - China is looking towards Brazil (building 4 ports for very large ore carriers that are too big for Australia, but the economy of scale will work for Brazil) and Africa
d) agriculture - less than previously, and already some limited export restrictions
e) financial services - which are being hard hit
3. We are living in a geopolitically complex area
Anyone thinking this is going to bounce back quickly is (I believe) seriously mistaken.
These 3 podcasts are well worth listening to.
https://www.macrobusiness.com.au/202...y-disposition/
With the sheer enormity of the COVID19 pandemic’s economic impact only starting to dawn, David Llewellyn Smith and Leith Van Onselen spoke with Gunnamatta on the major forms the shock has taken through the Australian economy. Over the course of about 75 minutes (3 parts) they cover the ugly numbers and the dynamics across employment, households, spending and debt serviceability, with implications for wages, real estate, government outlays and the strategic policy implications these encompass. It isn’t pretty