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Economic disasters drive increased demands for valium

94.6% of Australian workers retain their jobs a year after the world experiences the worst financial crisis for 80 years. This compares with 95.8% prior to the crisis when the economic ravages of the Howard Coalition Government were still bearing on the down-trodden Australian working class.

This disasterous state of affairs has led the reformist Rudd Government to commit to $300b of debt and for concerned social democratic commentators to declare that our banking system should be nationalised. None of our banks failed but you can never be too cautious particularly since an (ill-advised) Kevin Rudd guaranteed their deposits.

I am going to have a cup of tea, a BEX and a good lie down. Oh, probably a valium too. Kevin Rudd himself is in charge of this disaster and the general air of economic paranoia has me worried.

4 comments to Economic disasters drive increased demands for valium

  • Uncle Milton

    “94.6% of Australian workers retain their jobs a year after the world experiences the worst financial crisis for 80 years.”

    Come on Harry, you know that unemployment is going to go up and up and up. Or, in contrast to what you have earlier claimed, is the repeal of WorkChoices not actually going to lead to labour market disaster?

    And of course if we are not going to have a deep and long recession, then we’re not going to have the debt either.

  • hc

    So if unemployment goes to 9% employment will be 91% compared to 95.8% prior to the crash. For all its faults the system has amazing resiliance. Its a point made firmly in the book by Akerloff and Shiller in their new book. The worst crisis in 80 years. i think perspective is important.

  • Uncle Milton

    It’s just another recession Harry, just another recession. If the world’s financial system had totslly crashed and burned as it very, very nearly did in September last year when Lehmann went down, and threatened to again in October when the US House of Reps voted down the rescue package, then we’d looking at 30%+ unemployment, just like in the Depression.

    In Q4 last year the Japanese economy contracted by 5%. Not 5% annualised, but 5% in the quarter!

    But the financial system survived and “all” we’ve got a nasty recession.

  • hc

    Uncle Milton, I wrote entirely of Australia. Check every word. Our seasonally adjusted unemployment declined last month. None of our banks have failed.

    My point is not to minimise the adverse impact of the recession. The impact on our terms of trade and public finances is huge. But the resiliance of the system is also amazing. The post was intended merely to point that out.