As the Global Financial Crisis threatened to engulf Australia, the Federal Government launched a series of financial stimulus packages in a bid to stimulate the local economy, support jobs, boost infrastructure and lessen the effects of the global recession.

The government’s response was so effective because it chose initiatives that were timely, temporary and targeted.

1) The Government responded quickly and decisively to the global financial crisis, implementing stimulus measures from October 2008. Timely action allowed the stimulus to support the economy when it was needed most.

2) The stimulus measures were designed to ensure that they did not affect the sustainability of the budget.

3) The stimulus measures were also carefully targeted to ensure their effectiveness in boosting demand, in turn supporting jobs and economic activity. The large capital component of the stimulus addressed long term needs for economic and social infrastructure.”

Fiscal stimulus packages in October 2008, December 2008, February 2009 and in the May 2009 budget, but at every step the Coalition opposed the government’s decision to invest and create jobs.

Without government intervention, the economy would have contracted and the unemployment rate was predicted to rise to 8.25% – meaning hundreds of thousands of Australians were at risk of losing their jobs.

Many workers still suffered, but the AMWU estimates that an extra 50 000 manufacturing workers who would have otherwise lost their jobs, kept their jobs because of the stimulus packages.

The ‘timely temporary and targeted’ approach in Australia is estimated to have added 2.5% to Gross Domestic Product (GDP) in 2009-2010 and 1.75% to GDP in 2010-2011.

Australia also achieved these outcomes with very small increases in government borrowing compared to other countries. Not only was the stimulus borrowing small and affordable, it has saved tens of thousands of jobs. It shows that Joe Hockey and Barnaby Joyce's scare campaign about debt has no economic credibility.