Forget GDP numbers. The true measure of an economic downturn is employment and unfortunately, the ABS methodology understates that by 30-40 per percent.

Small business owners and ordinary workers are taking a hammering.

The last official recession was back in 1991. It took 14 years before employment got back to the level it was before the recession.

Our economy was running out of puff even before the bushfires last year. That’s why the Reserve Bank was forced to cut interest rates three times.

It was desperately trying to kick start inflation and business investment.

The recent company reporting season was littered with huge earnings drops and multi-billion dollar losses from some of our biggest companies. They won’t be paying tax for years.

The Government is under pressure to jettison some of its most cherished principles.

Treasurer Josh Frydenberg has given a nod to the calls for demand-side remedies by fast-tracking infrastructure investment plans.

He’s also hinted the October 6 budget may bring forward $158 billion in personal income tax cuts. But tax cuts only help the rich and well off.

Australians are nervous about the future. Last week’s national accounts, confirmed the biggest downturn in almost a century was driven by a collapse in household spending, the most important part of our economy. It slumped 12.1 per cent.

A large slab of the Federal Government cash splash, which kept millions of workers off the dole queues, and the drawdown in superannuation — which now total $120 billion — was either saved in mortgage offset accounts or used to pay off debt.

But repaying debt doesn’t fire up demand. It’s spending that is required.

The impacts will ricochet through our lives for years to come, particularly for those facing a long stint either out of work or on greatly reduced means.