Why has the Australian economy not responded to the unprecedented stimulus it has received? We now know that in the 2013-14 financial year we will see a deficit of around $50 billion. Add to that record-low interest rates, and in almost all post-war years we would see very strong growth, if not a boom, given that level of stimulation.
But it has not happened and the economy remains sluggish. Let me put forward four reasons (there will be many more) – the first three of these reasons show that our country is undergoing fundamental and dramatic change.