The economy is strong with this one…not

When pictures are worth a thousand words.

The fantasy:

The reality:

May Centerlink be with you.

David Llewellyn-Smith

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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Comments

  1. A likely counter-argument would be along the lines of: the failure of a seed to germinate does not automatically leave one to conclude that the soil is not fertile.

    But that would suggest that the great unwashed are stupid. A position not helped when considering how they vote.

    • Interested PartyMEMBER

      “But that would suggest that the great unwashed are stupid. A position not helped when considering how they vote.”

      And that suggests we the voters just don’t vote hard enough, and that we are given quality people to vote for……and we just get it wrong, every . single . time.

  2. darklydrawlMEMBER

    Zooming into the 2nd photo I note that the “Thai Oriental Massage” place is the only place still in business. Not surprised – looks like that neighbourhood could use a bit of ‘stress relief’.

  3. SnappedUpSavvyMEMBER

    looks like scummo has a thai massage joint under his offices …… BWHAAAAAAHAAAAAAAAAAAHAAAAAAAAAAAA Oh deary me……looks like only shop still trading…..BHWAAAAAHAAAHAAAAAAAHAAAAAAAAAAAAAAAAA ……must be all the quiet aussie blokes sneaking in and out havin a go BWHAAAAAAAAAAAAHAAAAAAAAAAAAAAAHAAAAAAAAAAAAAAAAA

  4. Yeah. Scomo’s electoral office is surrounded by busted small businesses. What a great symbol of the difference between LNP and MSM spruiking, and the reality of trying to make a living in Australia today.

    In less than 6 months the RBA has reduced the cash rate from 1.5% to 0.75%. In terms of the magnitude of the change…0.75%…that’s not a huge amount. If the rate was dropping from 8.75% to 8% nobody would be too alarmed. But relative to the size of the current rate that’s a huge change. The RBA has halved interest rates in less than 6 months in a desperate attempt to stimulate a floundering economy, and all that’s happened is that most people have used the little bit of extra cash to pay their mammoth mortgages off quicker.

    What the muppets at the RBA don’t seem to have realised is that we’re in uncharted waters here, and the conventional effects of interests rate reductions aren’t applying any more. In fact, it may well be having the reverse effect to that which is desired as people look around at all the closed shops like those next to Scomo’s office, realise that bad things are happening as indicated by these interest rate reductions and decide to reduce their debt rather than buy more useless sh1t from China.

  5. TailorTrashMEMBER

    Love it ….but we don’t discuss on shop matters

    I’m sure it’s soon to reopen with a silly willies $2
    Shop …..retail is 60% of GDP
    Getitintaya straya!

  6. About three weeks ago, I walked the entire length (and back) of Chapel Street in Melbourne.
    There were significantly more closed businesses and up for lease than usual.

    • When Chapel street was worn and slightly tired looking, a lot of energetic young designers and alternative small traders moved into it. When they made it fashionable, the greedy landlords jacked up the rents to ridiculous levels and forced the small traders out.

      The commercial property owners forgot the most basic rule of economics – the law of supply and demand.
      No sympathy for them at all and I see it up here in Darwin too.

  7. BaldbadgerMEMBER

    That could be any high street of any suburb of Sydney. Brookvale is terrible.
    Was in Dural on Wednesday and you can’t miss the amount of shops for lease signs. Lots of industrial space. They must really be hurting.

    • But don’t budge on that asking rent or your the capital value might suffer! After all, it’s about the capital not the productive use of land that we’re all about in Straya.

  8. That place is ripe for a Chinese developer to buy it all, knock it down, and build a 50 floor apartment for Chinese buyers.

    • The Horrible Scott Morrison MP

      And that’s what Australia is all about. Having a go and getting a go, to build the high rise units that new Australians need to live in.

      • The Traveling Wilbur

        And getting the people who didn’t pay for the property to assume and pay for part of the risk of owning it. That’s what Australia is all about.