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Recovery: Rudd spells it out
The”success” of the Rudd government’s stimulus package will be “a lesson” for others, including the
The Nobel Prize winning economist, Paul Krugman, agrees. He has repeatedly described President Obama’s stimulatory package as inadequate.
Comparisons may be odious. But they are unavoidable. The figures speak for themselves. Unemployment has now hit 9.5 per cent in the
Mr Evans spoke as he released the latest Westpac Melbourne Institute of Consumer Sentiment. Surprisingly, for times like these, it showed that consumer sentiment surged by a record 23.3 per cent, over June and July.
Even its authors, though, warn that this burst of exuberance might not last. They say that the first flush of the Federal government’s stimulatory packages has now passed. And unemployment is likely to rise later this year. So the Australian economy could still contract.
Meanwhile, though, exuberance rules.
Mr Rudd is not reluctant, though, to teach others the lessons that the global economic crisis has taught him. He says the G20 must be given the job of coordinating measures to end the crisis. He fears that the world’s richest and most powerful nations, represented by the G8, cannot do it alone.
Mr Rudd presented that case very forcefully in
His pitch was chilling.
Mr Rudd noted that global stock markets fell by just over 20 per cent in the first 12 months of the Great Depression. That event is commonly called the Great Crash of 1929.
Yet, as Mr Rudd also noted, global stock markets plunged by more than 40 per cent, in the 12 months from April 2008. “But there is one difference between now and 1929,” Rudd added in a speech he delivered in
“Uncoordinated national responses are no longer adequate,” he added. Mr Rudd warned, several times, that neither
The full text of the PM’s speech – A strategy for sustainable economic recovery: The role of the G20 – is on his website.