Australia may have escaped the worst of the global financial crisis, recording a less than 2pc increase in unemployment and enjoying a 1pc growth in GDP in the last 6 months, but life in the lucky country has been altered by the shockwaves of the downturn that followed the collapse of Lehman Brothers.
The ostentatious acquisition of flashy cars, designer shoes and expensive waterfront homes with large mortgages that characterised the boom years have been replaced in many suburbs with sustainable, or even frugal, living, a focus on steadily repaying debt and a new "moral consumer".
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Bernard Salt, a cultural commentator and demographer from KPMG, said the fallout from the crisis had resulted in a fast and brutal change in outlook and lifestyle among Australians.
"During the boom years everyone could live in the moment and not worry about the future, but all of a sudden we started to be very concerned about a longer range view," Mr Salt said. "It is now time to repent, to pay back debt, to live within our means, you now need a moral authority to spend money."
The financial crisis has also transformed the way in which Australians interact with each other. A fervent focus on the individual has given way to a growing sense that there is strength in numbers.
"Celebrity chef culture and Australian Idol came out of the boom, it was a celebration of the individual and everything was about being different and quirky and setting yourself apart from the crowd," Mr Salt said.
"But during the downturn you see a return to the idea of the family, the herd, the tribe, the community." Mr Salt said Australians felt "greatly chastened" by the last 12 months, but probably not as much as people in other countries, such as America and Britain.
While society is still grappling with the consequences of the crash, the economy is on the steady road to recovery.
Shane Oliver, chief economist at AMP Capital, said that, in an economic sense, the crisis had been positive for Australia. "We went into the crisis with a housing shortage and now we're seeing signs of recovery in housing and China's demand for our exports held up, it's a fairly rosy outlook," he said.
"For many Australians this recession has been good because if you go back a year the standard variable mortgage rate was 9.6pc, petrol was $1.70 a litre and inflation was quite high. Now, as a result of the crisis, ordinary Australians have seen big falls in their interest rates, petrol prices have fallen back dramatically and many Australians got a cheque in the post from the Prime Minister."
Mr Oliver said the while some had struggled with unemployment and having their working hours cut back, many Australians who had kept their jobs were "doing pretty well".
"In some ways most Australians may think if this is what a recession is, then bring it on, which is probably a radically different situation to the UK. Most Australians are feeling pretty relaxed about things."
As well as aiding the ordinary Australian citizen, the global financial crisis has also helped strengthen Kevin Rudd's dominance of Australian politics. While condemned by the opposition, his government's stimulus plan or "fiscal Viagra", which included sending out cheques of $900 to millions of Australians, has been widely credited with pulling the economy back from the brink.
The generous government handouts and building projects kept consumer spending up and prevented unemployment from climbing. The electorate now has renewed confidence that Mr Rudd and the Labour party can negotiate difficult economic times.
But Mr Oliver warned that while a return to 4pc growth was on the cards in the next 12 months, Australia's outlook was not without its dark spots.
"Many foreigners will look at Australia with disbelief, but the Achilles heel is that Australians still have a lot of debt and we have still got expensive houses, but until something really breaks the economy and sends unemployment spiralling it's unlikely these things will become a problem."
The ostentatious acquisition of flashy cars, designer shoes and expensive waterfront homes with large mortgages that characterised the boom years have been replaced in many suburbs with sustainable, or even frugal, living, a focus on steadily repaying debt and a new "moral consumer".
Related Articles
Australians rip up optimistic forecast and predict recession
British celebrity chefs try their luck in Australia
Australia to cull outback's camels
Chinese directors boycott Australian film festival over Uighur documentary
Thaksin Shinawatra in secret talks on Fiji
Bernard Salt, a cultural commentator and demographer from KPMG, said the fallout from the crisis had resulted in a fast and brutal change in outlook and lifestyle among Australians.
"During the boom years everyone could live in the moment and not worry about the future, but all of a sudden we started to be very concerned about a longer range view," Mr Salt said. "It is now time to repent, to pay back debt, to live within our means, you now need a moral authority to spend money."
The financial crisis has also transformed the way in which Australians interact with each other. A fervent focus on the individual has given way to a growing sense that there is strength in numbers.
"Celebrity chef culture and Australian Idol came out of the boom, it was a celebration of the individual and everything was about being different and quirky and setting yourself apart from the crowd," Mr Salt said.
"But during the downturn you see a return to the idea of the family, the herd, the tribe, the community." Mr Salt said Australians felt "greatly chastened" by the last 12 months, but probably not as much as people in other countries, such as America and Britain.
While society is still grappling with the consequences of the crash, the economy is on the steady road to recovery.
Shane Oliver, chief economist at AMP Capital, said that, in an economic sense, the crisis had been positive for Australia. "We went into the crisis with a housing shortage and now we're seeing signs of recovery in housing and China's demand for our exports held up, it's a fairly rosy outlook," he said.
"For many Australians this recession has been good because if you go back a year the standard variable mortgage rate was 9.6pc, petrol was $1.70 a litre and inflation was quite high. Now, as a result of the crisis, ordinary Australians have seen big falls in their interest rates, petrol prices have fallen back dramatically and many Australians got a cheque in the post from the Prime Minister."
Mr Oliver said the while some had struggled with unemployment and having their working hours cut back, many Australians who had kept their jobs were "doing pretty well".
"In some ways most Australians may think if this is what a recession is, then bring it on, which is probably a radically different situation to the UK. Most Australians are feeling pretty relaxed about things."
As well as aiding the ordinary Australian citizen, the global financial crisis has also helped strengthen Kevin Rudd's dominance of Australian politics. While condemned by the opposition, his government's stimulus plan or "fiscal Viagra", which included sending out cheques of $900 to millions of Australians, has been widely credited with pulling the economy back from the brink.
The generous government handouts and building projects kept consumer spending up and prevented unemployment from climbing. The electorate now has renewed confidence that Mr Rudd and the Labour party can negotiate difficult economic times.
But Mr Oliver warned that while a return to 4pc growth was on the cards in the next 12 months, Australia's outlook was not without its dark spots.
"Many foreigners will look at Australia with disbelief, but the Achilles heel is that Australians still have a lot of debt and we have still got expensive houses, but until something really breaks the economy and sends unemployment spiralling it's unlikely these things will become a problem."
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