These two headlines, along with the budget, current account and trade deficit headlines from yesterday, show that that the immigration economy is finished beyond doubt.
We have reached the point where adding more bodies is not adding more growth.
Failures of multiples systems evident and likely:
- education will not skill the people enough
- builders cannot house them fast enough
- roads will not move them fast enough
- hospitals will not be able treat them all
- farmers and food processors will not be able to feed them all properly
Productivity dropping. Immigration is done. Some of the elite know this hence big capex into data centres, and then robotics. Catch the wave.
Adding more bodies may not add more growth, but that’s situation normal.
Immigrants over the last 29 years or so have been a net drain on the country. The pie gets bigger, but everybody’s slice gets smaller etc etc. That’s what the subhead of the second headline actually states…GDP was 0.3% over the quarter, with per capita GDP at -0.1%. The headline is rather deceptive.
Now, if the great big GDP pie actually gets smaller, and continues getting smaller for an extended period, then we may be onto something.
With diesel prices still fabulously high, I can’t see how we can go much longer without things really turning to shit. Everything one eats, drinks, wears etc is delivered on a diesel powered truck, and that cost has to start to feed in at some point.
Cost of fuel is an easy excuse to rise the prices particularly where logistics lack meaningful competition.
How much is the real life fuel component in the price of supplies goods?
Don’t disagree much, but 0.3%…what’s the confidence interval on that?
That’s what I think is happening, or will be happening very soon.
South Africa’s GDP peaked in 2011. They also have a large low value add population growth problem, migrant as well as native.
I would not hold my breath at all.
It’s only a temp measure to make it barely possible to pass the economic tsunami and back to normal programmes the moment things begin to stabilise. Immigration will only slow down.
I looked at AlbUneasy tax reform superficially and it was excellent from the perspective of property speculation bit then I saw tax changes elsewhere and it is a disaster which will drive the economy down even faster.
Without total taxation reform, fixing one part destroys the other part of the economy. Employees are still the most flucked class in Taxstralia and they will suffer the most. But that has been the way since the first immigrants arrived 250yrs ago.
Perhaps next time vote harder for the turntable of the same ole parties and expect a different result…
The country has been in recession for a while now. The government just hasn’t told the plebs and will cook the books to fool the masses as long as they can. It’s worsening too and looks like it’s going to be a nasty shock. Just like the average unit had their head in the sand about Covid before it hit the country (people laughed when I told them lockdowns were coming) they are again covering their ears about the recession Australia is about to have (Is already in).