The alarmism over Coronavirus has diminished but the economic hangover of the unprecedented panic will be felt for a very long time.
In fact, I don’t think the true impact of the shutdown has really been felt yet. Whatever economic slowdown we have had has largely been masked by the government stimulus package of hundreds of billions of dollars through grants, jobkeeper, jobseeker and other measures.
There have also been deferred bank loan payments amounting to another couple of hundred billion dollars.
The govt stimulus comes to an end in September and the bank loan deferments fall due shortly after that.
On top of that, we need to recognise that our incredible 28 years of economic growth was sustained through booming migration – not economic or productivity reforms.
It helps explain why our international student program was so popular as it provided a backdoor gateway into Australian migration.
That’s all come to a halt now and the years ahead will demonstrate just how moribund our economy has truly become.
The cost of living is among the highest in the world, housing prices are stratospheric, businesses are being choked on red, green and black tape while employing people has become a diabolical political minefield.
The national debt has blown out to record levels thanks to inane policies and the growing demands of the welfare state. Few, if any, have the appetite to rein it in.
Think about this for a moment. The hard left have been asking for a Universal Basic Income, bigger government intervention in private industry, doubling of the dole and more funding for every public program for decades.
They finally have it all!
It will surely send us broke but is it actually too late to save ourselves and if not, what do we need to do to avoid a depression like experience.
Cory Bernardi is the author of seven books and has been a member of the Australian rowing team, a publican, an investment portfolio manager and spent nearly 14 years as an Australian Senator.
While the Coalition will eventually oppose the MAD Bill, the big problem is that they support censoring the Internet but want to do it slightly differently.
