Well, this is a surprise. Beyond the vested calls for lower rates and suffering (i.e lower profits) from the banks, retailers and property developers, we now have captains of industry turning into outright doomsayers.
From The (Locked) Cupboard:
DOW Chemical’s chief executive today said that he saw signs of a coming downturn in the Australian economy, and argued that jobs growth and overall competitiveness were in decline.
“We are seeing troubling signs for our economy at large – maybe even signs of a coming downturn,” he said.
Mr Liveris said Australia’s current growth trajectory was “unsustainable” and that the country had grown far too reliant on China for its prosperity.
What the Fox? Too reliant on China – but what about Futureboom – our once in a century saviour?
More:
He noted that, over the past 50 years, Australia’s manufacturing sector had shrunk from nearly a third of the overall economy to just 8.6 per cent today.
True, but this is just a temporary adjustment – we need to concentrate on what we do best – selling stuff to each other and digging holes – the other sectors can just move aside:
More from the doomsayer:
“We have seen factories and the jobs in them shipped overseas as other countries become more competitive and we’ve become less,” he said. He added that the Australian economy was heading towards a “tipping point”, saying the high Australian dollar had made it very uncompetitive.
Where have we heard this before? Productivity has been falling for years on the back of ever expanding private debt and structural fiscal policy that has led to an economy focused solely on consumption rather than investment for a robust future. A future that is unknown, and could involve some serious bumps along the way. All of a sudden we are now getting this?