Australia survived the GFC because the Labor party was in power at the time with the right people in charge. Ken Henry says Rudd was better prepared for GFC than any other leader in the world. Gordon Brown said that Kevin Rudd was the one of the first to see how bad the GFC was going to be. It wasn’t just Rudd but Gillard Swan and Lindsay Tanner helped save the Australian economy during the GFC. Rudd ,Gillard, Swan and Tanner became known as the gang of four.
Labor, under the direction of Wayne Swan as Treasurer put in place macro-economic settings that ideally suited the times. Labor and the then Treasurer considered both revenue and expenditure in the context of global financial crisis. As Wayne Swan said in a recent blog “It was the product of the hard work of millions of Australian workers and businesses, plus a government willing to take the tough decisions to support jobs and growth as the GFC threatened to smash our economy.”
And still some fools as Stephen Koukoulas calls them, argue that Labor’s policy stimulus measures in 2098-09 were wrong.
the reality of the situation is they saved the nation from the GFC. Unemployment stayed at or below 5.9% during the GFC in Australia. However how for last 11 months under Tony Abbott as Prime Minister it’s been 6% or higher.
Thanks to the Labor stimulus package, Investment figures also show Australia outperformed the rest of the world on total investment, scoring an average of 28 per cent over the period and this was during the Global Financial Crisis before the GFC investment in Australia was at 26.3. While investment averaged 19 per cent for the G7 and 19.4 per cent for the European Union. New business investment in Australia totaled $1.37 trillion over the six years from September 2007.
Small Business had a great friend in the Labor government.An example of this is for Small Business Labor introduced the ability to write off assets up to $6500, which recently has been downgraded by the Liberal-National Government. As acting opposition leader Senator Penny Wong said the downgrade to $1000 was a “tax trap for 2.7 million Australian small businesses and sole traders”.
if Australia was under Liberal Leadership, Australia would have burned and the they would have sat back, drank champagne and some cigars as Julia Gillard Once said they are the “Out of touch, out to lunch Liberal party”