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Why did Australia not go through the global recession in 2008 but all the other countries did?

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Voting Style: Open Point System: 7 Point
Started: 2/26/2018 Category: Economics
Updated: 3 years ago Status: Debating Period
Viewed: 486 times Debate No: 109755
Debate Rounds (3)
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I don't understand why Australia didn't go through the global financial crisis in 2008 but all the other countries did.


Australia was exporting a lot of copper and other commodities to China at the time. China was and still is building a lot of new cities. Copper was at a premium at that time.

Also, teaching English to Asian citizens is a huge industry for Australia, then and now and is pretty much recession proof.

Australian immigration is not an auction like America. They choose immigrants based on their skill shortages, adding to the economy all the time.

Australian tourism stood steady at the time.

Lastly, Australia is closer to a closed economy than an open one. In theory its open, but in reality its quite closed due to their own policy and geography ... long distance to transport goods to. So they are kind of on their own, and don't have the level of interconnectedness we have in Europe and the US.
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Debate Round No. 3
3 comments have been posted on this debate. Showing 1 through 3 records.
Posted by Antaeus_0708 3 years ago
iron ore kept our GDP up allowing our govt to hand out a bail out to the public in the form of "stimulus package" however these funds were bonds taken out by our reserve bank. we have had a downturn that saw us go from having a resources boom to deficit within 18 months and now are on par with the economic plans of europe and the US.. aka Trickle down economics, state funded private "research and construction"
Posted by volpittam 3 years ago
I won't do the debate; it seems pointless to do only to answer a question.
Essentially, the 2008 financial collapse was founded on the collapse of inflated home prices that resulted from an economic bubble in investment banking. This was fueled by a lack of regulation, which made it so that when home prices collapsed, there was not enough liquid capital (such as cash or commodities) to cover for the losses the banks experienced.
Australia's banking sector had far less involvement with the subprime loans that other country's financial systems were swamped in. Australia had (and still has, despite legislation such as Dodd-Frank) far more legislation to prevent the types of unstable loans that were backed only by investor confidence. The laws and regulations also made it so that when the financial sector went to hell worldwide, Australian banks has far more liquid capital, allowing them to survive the crash without all of the problems other nations and banks went through.
This is a bit simplistic, but books have been written on the subject. Simplified, Australia was not as exposed to the sector that crashed and was better prepared to deal with the meltdown itself due to the laws governing the banks that took the brunt of the financial impact.
Posted by Nd2400 3 years ago
This is more of a question than a debate....
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