Former federal Labor treasurer Wayne Swan says the biggest threat to Australia's economic future, should there be another global financial crisis (GFC), would be a Liberal Government.
Ten years on since the collapse of global financial services firm Lehman Brothers triggered the meltdown of the financial markets in the United States, Mr Swan has reflected on the crisis that engulfed the globe, including Australia.
Mr Swan was the treasurer under a Kevin Rudd Government at the time and says had it not been for their $42 billion stimulus package, Australia would not be so "well placed" economically in 2018.
However Mr Swan says Australia must be willing to take such decisive action should another financial crisis occur.
"The lesson for us is to be willing to use fiscal policy again, if we have to, like we did 10 years ago, and what I do despair about when you listen to ministers like Mr [Mathias] Cormann, they're out there vilifying the approach that we took 10 years ago," Mr Swan told SBS News.
Kevin Rudd speaking about the government's $42 billion stimulus package on February 6, 2009. Source: AAP
"I'm afraid the biggest threat to Australia's future, if there is another disaster internationally, will be the Liberals; who will not take the sorts of decisive steps we took 10 years ago to protect our people," said Mr Swan.
The stimulus package was designed to avoid recession and limit job losses during the GFC. The Labor government handed out bonuses to middle- and low-income workers worth up to $950.
Both Mr Rudd and Mr Swan credit it for successfully steering Australia through the GFC.
The Liberal party has continually dismissed such a suggestion.
In June this year, Malcolm Turnbull told the ABC it was the Chinese stimulus and the large amount of cash that John Howard had "left in the bank" that shepherded Australia through the GFC.
But Mr Swan says the only reason the Australian economy has continued to grow is because the Rudd government staved off a second recession 10 years ago.
"I think Australia, as we were 10 years ago, is still well placed. The Australian economy is 30 per cent larger than it was at the end of 2007 in large part, but not exclusively, because we didn't suffer a recession. In 2013, we were 15 per cent larger as an economy than we were in 2007."
"So Australia by protecting our economy, by securing the future of small business in particular, and avoiding wholesale unemployment has had a much stronger economy than just about any other developed economy, Mr Swan said.
Australia has maintained 27 years of consecutive growth, but the rate of expansion has slowed.
The trajectory of expansion - 27 years without a technical recession, which is defined as two consecutive quarters of negative growth - means it holds the record for the longest stretch of economic growth in modern history.
