Lessons from the past – the Howard and Costello years

There was no excuse for this deterioration. The structural reforms of the Hawke and Keating years built the foundation for Australia to beat the world – as eventually happened in 2010 when Australia rocketed to the top of the world's economies.

Six errors cost Australia dearly.

The first was selling off productive assets. These included airports, the National Rail Corporation, Dasfleet, Telstra, the remaining share of the Commonwealth Bank and many other valuable enterprises.

Had Australia retained some or all of these cash-yielding assets, current angst over debt may well have been allayed.

The second problem was failing to invest in infrastructure needed for future development. The funds were certainly available, especially as the mining boom accelerated.

The third was failing to lift compulsory superannuation savings to strengthen retiree security.

The Keating Government had planned to increase contributions from 9% to 15% so baby boomers could enjoy retirement on incomes close to weekly earnings.

"Anyone born in the 1940s can't now be in the system long enough," Mr Keating lamented. "It's impossible now to look after the baby boomers. Impossible."

Chief executive of superannuation fund Cbus David Atkin agreed: "There's no doubt that the delay in introducing higher contributions is impacting on baby boomers."

The fourth was selling 167 tonnes of Australia's gold reserves at near rock bottom prices just before the price rose spectacularly. According to one assessment, the fire sale returned just $2.4 billion. Had the gold been sold in 2011, when the nation needed cash during the global financial crisis, it would have fetched about $7.4 billion.

The fifth matter was losing more than $4.5 billion gambling in foreign exchange markets between 1997 and 2002.

According to Kenneth Davidson, "foreign banks have walked away with a fortune as a result of the Treasury's failed attempt at picking currency winners."