Society/Culture Australian Property Prices to Crash?

this is why i hate discussing economics with youtubers

wage growth IS INFLATIONARY UNLESS its tied to productivity gains

Inflation is the criteria the RBA have a bracket that they target - not wage growth

It has been this way since the reforms of the 80's thanks to our mate across the ditch

who said there were not productivity gains?
 
who said there were not productivity gains?

Productivity is a stat that is closely monitored. It's flatlined for the last decade or so.

It's been a source for debate, because people assumed it improvements would equal productivity improvements, but that hasn't occured.

Main reason is due to the big increases happening in the 90s. A better version of salesforce saves someone 5 minutes generating a report. Excel killed bookkeeping as a profession
 
Productivity is a stat that is closely monitored. It's flatlined for the last decade or so.

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That's not flatlining.

As Paul Keating has constantly argued for the last few years. ALL of the recent productivity gains have gone to the holders of capital and NONE to the workers.
 
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View attachment 1248464


That's not flatlining.

As Paul Keating has constantly argued for the last few years. ALL of the recent productivity gains have gone to the holders of capital and NONE to the workers.

Is there a similar graph for the cost of wages over the same time span.
The lack of wage growth has been a problem & our super levy has done nothing to help the workers in the now.
 
View attachment 1248464


That's not flatlining.

As Paul Keating has constantly argued for the last few years. ALL of the recent productivity gains have gone to the holders of capital and NONE to the workers.

Need labour productivity by input of labour. This is flatlining

Screenshot_20210928_225144_com.microsoft.emmx.jpg
 
The lack of wage growth has been a problem & our super levy has done nothing to help the workers in the now.

Real wage growth as opposed to nominal wage growth.

Super levy quite obviously isn't about helping workers in the now.

Nonetheless, it is a bullshit argument promulgated by dipsticks like Bragg.
Worse than it being a bullshit argument, its sole purpose is to attempt to dismantle the large industry super funds.
 
If you look at it sideways and squint it might kinda look flat-line-ish. Otherwise. NO!

Wages is tied to labour, not how efficient a robot or a machine that goes ping is

Reality is labour hasn't seen big productivity gains, so we shouldn't expect similar wage increases to the past (esp when we had low inflation)
 
How so?
What form of penalty should be applied retrospectively?

Penalty? No. That implies you have done something wrong which they haven’t. governments have allowe investors to pillage so it’s their fault, not the investor who’s working within a broken system.

Tbh the ship has sailed. So much damage has been done we will never recover from it but IMO ( and we have gone over this time and time again in this thread), investors as a minimum need to be severely restricted and or removed from the free standing home market as Well as home loan lending limited to 5 x household income maximum Across all lenders. Interest free loans also removed As well as investment tax breaks.

If investors can’t afford straight up to buy a property without tax breaks than * off So a first home buyer can buy it.

there Is zero need for household values to increase more than 1/2% per annum In-line with CPI increases. We are within 10 years of having a 2 million average house price in Sydney if we keep going the way we are. With zero wage increase.

these steps or similar should have been taken in 2010 then again in 2017, yet here we are in 2021 locking entire generations of first home buyers into risky mortgages Unless they were fortunate to have hand outs.

someone needs to start thinking how the next generation (in 30 years) is going to be able to afford a house on their own accord, without having to rely on inheritance And loans from mum and dad. That is an unsustainable and frankly unfair model.
 
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I don’t know about that in particular.

firms used to have whole teams of people who did nothing more than manage the books. I studied accounting in HS in the 80's, and we were taught all the processes for running a ledger. BUT, excel replaced much of the grunt work. The need to physically fill out a ledger book and manually reconcile the columns disappeared overnight

so now you only need a couple of people instead of a whole team

add to that secretaries - pretty much destroyed by MS Word and Outlook. Dont need someone to manage your calendar, write letters, and manage correspondence when it comes direct into your PC
 
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Real wage growth as opposed to nominal wage growth.

Super levy quite obviously isn't about helping workers in the now.

Nonetheless, it is a bullshit argument promulgated by dipsticks like Bragg.
Worse than it being a bullshit argument, its sole purpose is to attempt to dismantle the large industry super funds.

I'm suggesting it is to do with the cost of wages & that includes super & Workcare in addition to holidays, payroll tax, sick leave.
All the costs an employer saves if they dont employ someone.

Employers pay the Super increase, its a real cost & that it doesnt end up in the pay packet is exactly how it was always planned.
 
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Simple prediction.
Next winter will see more for sale signs than at any other time in our history .

Most politicians have multiple investment properties. They will destroy government finances before allowing their personal wealth to take a big hit.

Labor arent interested in doing anything either. And the Greens will never matter enough to do a thing when both major parties are in agreement.
 
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Most politicians have multiple investment properties. They will destroy government finances before allowing their personal wealth to take a big hit.

Labor arent interested in doing anything either. And the Greens will never matter enough to do a thing when both major parties are in agreement.

There is the issue of those in the rental market who need a roof over their head.

The advantage of household real estate as an investment over other available choices is the regularity of the income. Commercial real estate can provide a greater return however it is subject more directly to the economy of the small business sector.
 

Sqotty from office works

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What makes you say that?
Lived through 4 downturns and this will be equal to the worst.
People have over spent.
Did the whole of the east coast and the amount of boats jet skis cheap Chinese 4wd,s that won't be brought after the market collapse will bring young people undone, they think this booming overspending market will go on forever.
As soon as baldy turns off the tap you better find a thick bit of for to chew on.
That's why slommo is lining up an early election.
Look at them pushing out every smiling person and diatribe that gets em through the impending disaster.

Albo couldn't deal with it.
 
Aug 14, 2011
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Lived through 4 downturns and this will be equal to the worst.
People have over spent.
Did the whole of the east coast and the amount of boats jet skis cheap Chinese 4wd,s that won't be brought after the market collapse will bring young people undone, they think this booming overspending market will go on forever.
As soon as baldy turns off the tap you better find a thick bit of for to chew on.
That's why slommo is lining up an early election.
Look at them pushing out every smiling person and diatribe that gets em through the impending disaster.

Albo couldn't deal with it.

At some point one of our leaders are going to wear the dissatisfaction - as much as the rusted on voters will simply sook & not change their vote, the swinging vote will reflect the swelling discontent with how Covid has been handled.

Then again, how we stand against the rest of the world will count for something.
ScoMo, Gladys or Dan will need to convince the swinging voters they've done a good job, as much as that offends the enthusiasts on either side.
 
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I'm suggesting it is to do with the cost of wages & that includes super & Workcare in addition to holidays, payroll tax, sick leave.
All the costs an employer saves if they dont employ someone.

Employers pay the Super increase, its a real cost & that it doesnt end up in the pay packet is exactly how it was always planned.

And WTF does that have to do with what you wrote?

Workers have not seen any of the productivity gains flow into their income.
Most, if not all, of the productivity gains have gone straight to the holders of capital.
The Super guarantee increase was a means of getting some of the productivity gains to flow into the income of workers.

What is supposed to happen is that holders of capital and workers split productivity gains. THIS HASN"T HAPPENED FOR 5 years.

Before you provide yet another abstract, unrelated word salad....the productivity gains are real, have all ready happened and workers are entitled to their share.
ie Employers are effectively stealing money from workers.
 
Aug 14, 2011
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And WTF does that have to do with what you wrote?

Workers have not seen any of the productivity gains flow into their income.
Most, if not all, of the productivity gains have gone straight to the holders of capital.
The Super guarantee increase was a means of getting some of the productivity gains to flow into the income of workers.

What is supposed to happen is that holders of capital and workers split productivity gains. THIS HASN"T HAPPENED FOR 5 years.

Before you provide yet another abstract, unrelated word salad....the productivity gains are real, have all ready happened and workers are entitled to their share.
ie Employers are effectively stealing money from workers.

Do you believe the 10% super is irrelevant ?

I asked for a similar graph on labour as it will demonstrate the point you are trying to make. Go figure.
 
Reality is labour hasn't seen big productivity gains, so we shouldn't expect similar wage increases to the past (esp when we had low inflation)

That's not the reality Ned. Labour hasn't benefited from the most recent productivity gains, holders of capital have taken the whole pie.
 
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