It’s only the headline writer, but it is the most common of all economic illiteracies. From The Australian: Growth rates slashed as GFC fallout lasts decade.
Normal economic growth rates won’t resume until at least 2017, the Reserve Bank declared yesterday as it slashed its growth forecast for next year, leaving Australia with weak growth for almost the entire decade since the global financial crisis began.
The Reserve Bank’s vision, outlined in its quarterly review of the economy released yesterday, now stretches for another 18 months, with a 0.5 percentage point downgrade in growth estimates for next year, to 2.5 per cent, casting a shadow over budget forecasts.
Let me couple this from Drudge today:
The only relationship between the GFC and the dismal economic outcomes today is that the GFC led one government after another to put in place a Keynesian stimulus. As I said at the time, we will be lucky to get out of the problems created within a decade. If you would like more of the same, Policy in the Pub on Wednesday the 19th.
UPDATE: The photo added later. Seriously, what is the case for the stimulus?