Australia, you’ve officially jumped the shark

[Lyyynnnchy]

Good read. Don't let shallow digs put you off. The article is about far more than having a whinge.

http://rationalradical.me/2015/08/australia-youve-officially-jumped-the-shark/

Australia, you’ve officially jumped the shark

No one enjoys being unpopular, especially in our vain, materialistic and often dull contemporary Australia. Popularity is as important to Australians as soy flat-whites, low-hanging filament light bulbs, and the eponymous weekend real estate lift out. Oh, and having 24 craft beers on tap is pretty important these days too. But I digress. Our beverage-and-decor-obsessed nation has forged a whole economy and society around selling expensive food, drinks and houses to each other, and I’m pretty sure we even managed to sell a few rocks to China for a time.

Jeez we’ve had it good these last 20 years. While half of the developed world collapsed into financial and economic meltdown under the largest pile of debt the world has ever seen, we kicked back with our first home owner grants and solar panel rebates, and threw another shrimp on the barbie out the back of our half a million dollar mortgage. I mean house.

 

[sabre_ac]

That was a good read and logically makes sense. The old house to income or rent ratio is a classic example of how out of step Australia is with the rest of the world as is the debt levels which will all be impacted by the fact our main export is currently in big trouble.

However as someone who has lived abroad, there is a number of non economical inputs into the equation which has a big effect and can skew results away from the expected.

1. Climate: Never underestimate the draw of warm dry weather, beaches and fresh air. Australia is almost in a league of its own when it comes to these qualities which will always push immigration, which will artificially inflate our biggest assets (Homes) and keep employment relatively low.

2. Stable center governments: End of the day, regardless of whatever sensational tactic is used by the local news providers, our government is predictable and ultimately fair (In an imperfect system), with predictability comes security.

3. Long periods of high immigration: Australia is a diverse country and has been that way for some time and will continue to be, with diversity comes tolerance (again relatively) and opportunity.

I'm sure there is more..

That's not to say there isn't a reality check coming for some people who made a bundle of cash with little training or education and Australians grand travel adventures will be reigned in by the exchange. Prices for beers and discretionary spending will be adjusted according, such is life in a market economy!

 

[Lyyynnnchy]

Growth figures missed expectations by a fair bit today!