Links 4 December 2019

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Unconventional Economist

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

Latest posts by Unconventional Economist (see all)

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  1. NEW ZEALAND: When does Jacinda Ardern’s coalition government intend to allow affordable housing to be built … by dealing with land supply and proper infrastructure financing … as promised ?

    … Are there any lessons being learnt from the Greater Christchurch new supply story ? …

    … No wonder a The Listener editorial February described this governments management of housing issues as ‘ … from crisis to disaster’ … following highly critical The New York Times and The Guardian articles soon after the release of the 15th Annual Demographia Survey 21 January … refer http://www.PerformanceUrbanPlanning.org

    62% of NZers cannot afford a home in their local market … IPSOS NZ November Issues Monitor

    https://www.scoop.co.nz/stories/BU1912/S00028/62-of-nzers-cannot-afford-a-home-in-their-local-market.htm

    ( IPSOS NZ will load its latest Issues Monitor on its website ‘soon’. In the meantime … see attached … )

    Auckland, 2 December 2019 – More than three out of five New Zealanders (62%) believe they cannot afford to buy a home in their local property market, according to the latest Ipsos New Zealand Issues Monitor. Just 38% of respondents said they think they could afford to buy a home, compared to a 42% global average. Housing remains the top issue facing New Zealanders. … read more via hyperlink above …
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    … Auckland 3 bed rents surge from $650 per week November 2018 to $686 per week November 2019 … MBIE figures …

    End of Day Report … Interest Co NZ

    https://www.interest.co.nz/news/102856/review-things-you-need-know-you-go-home-tuesday-anz-raises-home-loan-rate-cuts-terms

    … extract …

    … STEEP RENT RISES

    The national median rent has now reached a new record high of $454.50/week, up from $445/week in October and up +5.7% pa. Median 3 bdr house rents have jumped to $491.67/week, a rise of +9.3% in one year. In Auckland the rise is +5.5% to $686/week. In Wellington for the same 3 bdr house it is up to $663, an +11% rise in a year. In Christchurch it is up +3% to $433/week and that is not a record high. Christchurch has a full supply of houses for rent, no doubt keeping things restrained. But that is not the case in Wellington and Auckland both of which hit new record highs. And as the increases have mounted quickly in the past few months, you do have to wonder if the recent flurry of building standard obligations (all of them welcome) haven’t pushed up rents faster that they would otherwise have risen. The certainly are steep rises in a short time period. Rents for 2 br flats aren’t rising anywhere near as fast. (Our data is supplied by MBIE.)

      • Trump and Barr are neck deep in this. The real tell is how little Trump has tweeted about this whole grotty saga. If he had nothing to hide he’d never shut up about it, given Clinton is involved.

          • Socialist triggered is that best propaganda you have to offer in your expressed desires to usher in your ideological respective regardless of its destruction of society E.g. you had to burn the village to save it …..

            Mate I would off you before that was eliminate just the same as I would do with all despots considering the outcomes … if it was on offer …

            Take your oligarchical neoliberalism and cram it, yes the unwashed are ignorant, but that does not give you license to call it natural anything.

          • Interested PartyMEMBER

            lol
            You do realise the rollback of so many regs were to kill off slush funds…don’t you?…
            But maybe you are a recipient of such a thing? given the zeal you go after some.

          • Hay IP if your memory serves I’ve been out of the market since post GFC and have no income derived from it, save some forced saving, not that it has anything to do with the sociological ramifications of what I stated above, sans polemic uttering’s.

            So where do you offer your tithes and offerings of obedience good sir ….

          • Interested PartyMEMBER

            I’ll give you a hint….

            “Take your oligarchical neoliberalism and cram it, yes the unwashed are ignorant, but that does not give you license to call it natural anything.”

            The above quote of yours is incorrect in it’s base assumptions about myself….but I suspect that doesn’t fit with your mindset and pidgin-holing ….and for the record….i couldn’t care less. I do find the paragraph above the quote to be enlightening though…..you want to top me because non-conforma…..kind of reads like you would fit in with the Derg.

          • LOL you realize that trump is rolling back any rights the middle class once had and driving neoliberalism harder than both bush and obama …

          • And you say that like i have a dog in the hunt for the DNC let alone its buddy the GOP …. what part of the Washington Consensus can’t penetrate that thing you call a mind …

          • Interested PartyMEMBER

            no dog in the hunt?

            “Mate I would off you before that was eliminate just the same as I would do with all despots considering the outcomes … if it was on offer …”

            spoken like a true believer, comrade. You would fit in with hilarys hit team.
            You have plenty of dog in this hunt…you just can’t face it. Antifa is recruiting…..

          • Reading comprehension and memory issues IP ….

            I have stated many times how the Clinton’s reformed the democratic party into a third way outfit through the DNC, not that the GOP was already there.

            I have also repeatedly stated I forward MMT as administered by PK and policies advanced by those like Sanders et al, so I don’t know where you get the above views from. Seems like from whole cloth or canned talking points.

  2. I know I bang on about this incessantly but in my mind our failing education system is the real root cause of our Economic malaise.
    https://www.smh.com.au/national/nsw/urgent-need-to-address-maths-performance-as-nsw-slumps-in-international-test-20191203-p53ge2.html

    If the quality of our Aussie Labour pool is second or third rate than so are the jobs that they qualify for and by extension so too are the wages that Aussie Labour will attract. You can’t run away from this problem, there’s no magical solution or Invisible hands moving arbitrary levers (like exchange rate) that will somehow make today’s Aussie fools capable of solving tomorrows real world problems.
    It’s worth remembering that our Aussie human capital only has global value because it can solve tomorrows problems, if we’re not valued as a part of this global chain than we shouldn’t be surprised when the global market tries to cut us out of the equation. (as is happening today wrt Aussie Natural Gas,,,LNG fiasco etc )

    • Fisho ….

      Its not like for years I’ve been putting this under everyone’s noses … come on …

      Science-Mart: Privatizing American Science – by Philip Mirowski

      This trenchant study analyzes the rise and decline in the quality and format of science in America since World War II.

      During the Cold War, the U.S. government amply funded basic research in science and medicine. Starting in the 1980s, however, this support began to decline and for-profit corporations became the largest funders of research. Philip Mirowski argues that a powerful neoliberal ideology promoted a radically different view of knowledge and discovery: the fruits of scientific investigation are not a public good that should be freely available to all, but are commodities that could be monetized.

      Consequently, patent and intellectual property laws were greatly strengthened, universities demanded patents on the discoveries of their faculty, information sharing among researchers was impeded, and the line between universities and corporations began to blur. At the same time, corporations shed their in-house research laboratories, contracting with independent firms both in the States and abroad to supply new products. Among such firms were AT&T and IBM, whose outstanding research laboratories during much of the twentieth century produced Nobel Prize-winning work in chemistry and physics, ranging from the transistor to superconductivity.

      Science-Mart offers a provocative, learned, and timely critique, of interest to anyone concerned that American science–once the envy of the world–must be more than just another way to make money. – snip

      This gets right back the to the whole monetization of everything so the market can price it and then distribute based on meritocracy of all things. This is compounded by those that drove the whole skin in the game or pay to play paradigm moralistic narrative in severing the needs of the market first and foremost. Its not like over a few decades I’ve watched and conferred with those in academia from entrance administrators or heads of departments about the lowering of standards just to generate product [tm] for market demands.

      Best bit is the expectation that the low quality product [tm] is expected to be processed by “the market” like wheat from chaff, once in “the market”, not that its a drag on what ever service is being delivered or how that effects those competent in their skill set in delivering the service. To make matters worse these individuals graduate like they are the next best thing without any life experience at all, then get chucked into the meat grinder where climbing the slippery pole is more important than anything else, not to mention being ***malleable*** to unethical management is more important than anything else. Because if you don’t make it you’ll end up on the bottom and your prospects will be zilch if you get sick or injured, just human refuse and a drag on productivity [tm]. Then if you have others that depend on you like kids or family ….. they get even a better deal …

      Sorta like being in Savannah GA chilling at a bar on River St, after months in the field, only to have some newly minted Jar Head Marines from Camp Lejeune graduate pop in on their way to where ever and due to their indoctrination – believe – their all that. So they test themselves by creating a blue out of whole cloth just to prove to themselves they are all that, to make matters worse they initially do it on a one on one basis which then can be magnified to a pack brawl. Boy do they get fked in the head when we insist that it remains a one on one and regardless of the outcome that its done and dusted.

      • Not sure I get your point.
        I believe that the educated individual has value in both a centralized research environment (Bell Labs, Sandia…etc) and in a Decentralized Corporate level research environment. Matter of fact I’d say that the individual has greater freedom and ability to shine under a decentralized corporate or startup culture.
        That said it’s always the hopeless hack that is protected by nepotism and pseudo government seniority structures and this protection comes at a cost to skilled individuals and by extension our broader society.

        Sorry but you completely lost me with the Jar heads brawling in SC.

        • Wow the bias affirmation in full light of is manifestation is a sight to behold fisho … just wow … the best you can do is some pettifoggery about what about. Heads up ideologue … the holy writ is just that … that you made it a cornerstone to your mental processes and advanced it due to emotional sunk cost is another whole social psychology topic.

          • You know Skip, i suspect that most people of moderate intelligence would be able to understand my reply but I suspect they’d be baffled by your response.
            What is it that they say: Blind them with Science or Baffle them with BS.

          • That would be great if you were the moderator of such things, yet you are not. Might help if you actually provided a counter perspective based on information and experience sans your personal discomfort about anything that screws with your ideological beliefs.

            Wanking on about knowledge and education without delving into why its gone to pot is a strange proposition, maybe it just need more privatization and grounded in market based income expectations. Working well so far, I mean since you know so much about these things.

          • Well you know deep down I’m an Innate knowledge kinda guy, combine that with the concept that Knowledge is Action and you’ve fully described me the rest of your verbiage is unnecessary .
            But hang about are Knowledge and Action separable?
            Are they separable in all philosophical domains
            What is intellectual wanking if knowledge and action are inseparable?
            I think you might be just the right person to answer this question.

          • “Knowledge is action” don’t be shy fisho just say it loud and proud …. praxeology … the action axiom …

            What you thought[?] that the totality of your comments over the years and your dialectal style which is the results of your mistaken belief in your indoctrination is a measure of your – an intellect. You are what you decry in your original comment …. chortle ….

    • That line from Mr Hazzard was a cracker. Even had a nurse proudly and amusedly boast of her overseas citizen and dwelling, ischaemic heart disease father who became symptomatic and jumped on a plane to Australia. Straight to hospital on arrival with chest pain. Bypass surgery and a little postop stay courtesy of NSW Health and then a flight back home.
      She was stoked by his free heart surgery

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