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Philip Lowe of RBA wants to be Covid-19 God · 29 April 2020

Dr Philip Lowe’s speech 21 April 2020, “An Economic and Financial Update” says: “Over the first half of 2020 we are likely to experience the biggest contraction in national output and income that we have witnessed since the 1930s”

Lowe on ABC Four Corners, 20 April 2020: In discussing economic and social “restrictions and shutdowns”, Lowe was asked if “we can afford 6 months of closures”.

Lowe replied that “the first order issue is what we need to do to contain the virus”, and later said: “If we need 6 months to contain the virus, that is what we need to do”.

Who is he to put such views?

Lowe has worked since high school at the RBA (except for a short stint at the Bank of International Settlements in Switzerland) looking at various financial issues, with very little interaction with the real world of business or life.

Lowe has never worked in a country with significant poverty or where there has been a process of huge economic disruption. Does he know what happened in Russia in the 1990s? Or the consequences?

Does he have any real idea how the Australian economy and society would look after “6 months of closures”?

Lowe may have never read a serious history book in his life. Does he know what happened in Europe at the end of the 1930s? And what then followed?

Does he understand that great economic disruption and falls in output have political consequences and often lead to great violence?

Lowe is out of his depth both as a person and an economist. Lowe has a secure job with an annual salary of about $1m. It is very easy for him to pontificate about other peoples lives!

Will he donate 50% of his salary to a fund for the unemployed?

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