Economics advisers Ross Garnaut, argues
“Australia’s macroeconomic policy response to the global financial crisis has relied relatively heavily on one of the biggest and earliest budget expansions of any high-income country and less on lower interest rates. He agrees the stimulus has limited the downturn. “But there are hard times ahead,” he writes. “Sustainable full employment will require reduction of average incomes and living standards below those to which Australians became accustomed before the crash. The Australian government, community and business leadership has barely begun to contemplate the adjustment that is required.”
I feel this will be a common story through the developed world. The burden of the enormous borrowing to stave off the worst of the GFC effects will be with us for years if not decades.
My message is that over the coming years its more vital than ever to take personal responsibility for one’s financial security, to develop new income streams to work on building discretionary income to buck the trend of reducing Lifestyle.
Seriously something to think about. the J.O.B. (Just Over Broke) is becoming increasingly unattractive as a secure reliable bet for a prosperous future.
