Economic philosophy in Australia

In Chart 4, Net Income deficit is shown as a positive figure to simplify interpretation of its importance in the calculation of GDP. Chart 4 shows empirically that globalisation of investment has not been costless to ordinary Australians. Indeed, beyond 1997 growth in GDP begins to trend downwards as openness increases. From 2003 onwards, Net Income Deficit becomes a liability to the underlying performance of the Australian economy. This is particularly obvious in recovery from Covid.

5. Conclusions

Graphical evidence demonstrates that post 1971 structural reform of the Australian economy under a monetarist neoclassical synthesis has not served well the Australian economy and its people. Internationally, President Trump is moving to expunge the failed economic philosophies from US policy. The reality of President Trump's actions are exposing the lack of economic knowledge that has emerged worldwide as the monetarist neoclassical model became entrenched in western democracies.

Australia needs to redress that loss of knowledge domestically. Concentrated, Informed, and intelligent economic debate must be structured for Australia to move forward in a new philosophical direction.