Australia’s Economic Security: Is there a problem?
What is the risk for our National Security and Defence Capability?
Published in the Australian Defence Magazine, February 2019.
Financial and economic indicators that signal the start of a downturn are evident in advanced economies. Australia is at particular risk with households currently the second most indebted in the world and with a total private sector debt ratio of 205% of GDP. We are facing a serious economic security challenge; however, most Australians (including many of our politicians) do not appear to appreciate that economic security is the foundation of our national security.
We cannot rely on past economic performance and assume that we will have the resilience to address the significant economic risks in the decade ahead. Australians need to face an unpleasant reality and take appropriate action. We need a National Security Strategy that integrates all aspects of national power. An economic security plan should be an integral part of such a strategy.
The Institute for Integrated Economic Research is a non-profit organization based in Europe. It is focused on identifying empirically validated macroeconomic system descriptions and models, and ensuring their dissemination.