‘Perfect storm’: Is the Australian economy heading back to the 1970s? | knottmatthew
As a noted political historian, Paul Strangio is wary of oversimplified comparisons to the past. But as he surveys the diabolical challenges facing Anthony Albanese at the start of his prime ministership, he sees unmistakable parallels to Gough Whitlam and the tumultuous 1970s.
. The price of oil quadrupled and the confounding new phenomenon of stagflation emerged. In Australia, inflation jumped from 6.5 per cent in 1972 to 15.3 per cent in 1975. Unemployment doubled from 2.6 to 4.9 per cent. In a famous televised address in 1979, president Jimmy Carter said Americans faced not just an energy crisis but a “crisis of confidence”.
The economic and energy crises of the 1970s paved the way for Margaret Thatcher’s Conservative Party to seize power in the United Kingdom.However, after the past week, the immensity of those challenges is undeniable. The era of COVID-19 lockdowns and border closures may be over, but the nation faces another winter of discontent as consumer prices soar, interest rates rise and the energy market struggles to meet demand.