Recession:A time of “renewal”

The global economic crisis is about psychology as well as economics.

And the Federal Finance Minister, Lindsay Tanner, who makes that observation backs it with some advice.

He does that with a sharp comparison between the fortunes of the nation – and those of its national cricketers.

Australia’s cricketers are performing about as well as the Australian dollar right now.

So what can be done about these testing times?

“A modern nation isn’t quite the same thing as a national sporting team,” Tanner says.

“But the same principle applies.

“When things get tough, we have a choice.

“Do we go on the front foot or the back foot?’

Australia has just lost the current test series to South Africa.

So what is the path back?

Three things are necessary, Tanner says.

“Attack, change and invest in youth,” Tanner says.

That’s  not a bad plan for economic renewal either.

Especially when  the first faint  signs of recovery in the global economic crisis might be appearing.

An overnight report shows that home sales rose, unexpectedly in the US last month.

Sales of existing homes there rose 6.5  per cent last month.

And the New York Conference Board has boosted its forecast of economic activity in the US by 0.3 per cent.

It’s not all good news, in America, though.

General Motors and Caterpillar are still laying of staff  by the thousands.

But mental states matter.

Tanner says public debate, in a downturn, inevitably focusses on “what’s wrong, not what’s right.”

But he says the Australian character is well suited to times like these.

“We try hard. We attack and we take risks.”

Now’s the time to try it.

The holidays are over.

And we are back at work today.