Election bravado brushing aside looming economic crisis

Jim Chalmers makes a big call that Australia is in a good position to ride out the current economic shock. As your editorial points out, however, this country is in a much weaker position than at the time of the global financial crisis in 2008, when it carried no government debt (“Trump tariff implosion gives Dutton a fresh start”, 8/4). Kevin Rudd was able to fall back on John Howard and Peter Costello’s prudent fiscal management to see off the worst of that seismic event.

The Treasurer should stick to his lane. The only conclusion to be drawn from his comments on the movement of the cash rate over coming months is that they are for political advantage. In effect, he has saddled the nation with the dead weight of debt. He should park his predictions and afford Reserve Bank of Australia governor Michele Bullock her chance to right the ship.

Kim Keogh, Claremont, WA

A budget deep in deficit and the risk of a global recession, yet our Treasurer is already claiming Labor are the ones who can best manage fallout from any tariff tsunami. Really? Given the Albanese government’s outrageous spendathon track record over the past three years, one can theorise about the ALP’s ability to manage a booze-up in a brewery, along with the possible effects on world trade.

Julie Tadman, Upper Caboolture, Qld

Paul Keating and John Howard, between them, would know what to do in the circumstances Donald Trump has created: make the Australian economy more resilient and better able to withstand external economic shocks.

The leaders of a different era would manage the macro-economy better by containing and targeting expenditure and keeping debt low; by reforming tax; by identifying and carrying out micro-economic reforms; by innovating in the public sector; by bringing greater competition to the domestic economy; by looking for higher productivity through industrial relations, tax and technology policies; and by equipping and requiring our scientific and educational institutions to focus more on Australian interests.

They also would advocate for free trade among all the nations of the world, without the US. Sadly, none of the main political parties, nor others seeking office, has articulated an economic response to Trumpism. We are at risk.

Michael Angwin, Hawthorn, Vic

Anthony Albanese says he didn’t fall over; Chris Bowen says skyrocketing energy prices have nothing to do with wind and solar being forced into the grid; Tony Burke says the housing crisis has nothing to do with bringing two million immigrants into the country in three years; Jim Chalmers says a huge increase in government spending didn’t fuel inflation; and they all say the economy is booming even though we have record business closures and the biggest drop in living standards of any country in the OECD.

I think I see a pattern here.

Burt Bosma, Surrey Hills, Vic

I refer to Greg Sheridan’s article about government spending (“Our welfare addiction is killing Australia”, 5-6/4).

In less than 20 years, Australia’s debt has gone from zero to about $1 trillion, with annual interest bills of $24bn a year.

This debt is going to have to be repaid one day by our children. Failure to do so will result in economic collapse. Numerous great empires have collapsed due to self-indulgence, so don’t delude yourself that this can’t happen in Australia. It can and it will. To all political leaders, please stop throwing borrowed money at the electorate and burdening our children with a lifetime of paying for our short-term indulgences.

Michael Rorke, Northbridge, NSW

It’s hard to see how Australia’s weakened financial position brought about by Labor’s re-election profligacy translates into a safe pair of hands to navigate the latest financial crisis.

John Lake, Mosman Park, WA

If globalisation is indeed dead, then Australia has no choice but to be proactive in the new world order (“ ‘Globalisation is over’: tariff talks on ice, shares bloodbath looms”, 7/4).

One of the first actions should be to renounce unattainable climate targets such as net zero and withdraw from the Paris Agreement. Then our economy might be saved.

Julie Winzar, Palm Beach, Qld