Australia’s population Ponzi scheme hits tipping point

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Australia’s population Ponzi economy has hit peak stupidity, with BuildSkills Australia estimating that Australia requires an additional 90,000 construction workers to meet the Albanese government’s target of building an average of 60,000 homes per quarter for five consecutive years.

The Glass Pyramid Tweet

Master Builders Australia CEO Denita Wawn has demanded changes to Australia’s migration system to rapidly increase the building industry workforce.

“I’m concerned that there is no way known we can get 90,000 [workers] in three months, unless we had a radical change in the way upon which we are looking at our migration system, and our skill recognition system to support a fast-tracked migration solution”, Wawn told The ABC.

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Obviously, if we imported 90,000 construction workers, we would also need up to 90,000 homes to accommodate them and their families. We would also need more nurses, teachers, infrastructure, and every other service that these migrants would require.

All of which reminds me of the below equation explaining why mass immigration is utterly useless in alleviating skills shortages across the economy and represents a futile game of Whack-a-Mole.

Housing Equation
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Let’s think logically about Australia’s migration system for a moment.

Australia’s population has grown by an insane 8.2 million people (44%) this century alone on the back of high immigration.

Australia’s immigration intake was ramped up massively from the mid-2000s after the business lobby warned the former Howard Government that unless the nation imported loads of ‘skilled migrants’, then the nation faced chronic skills shortages and economic stagnation.

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Fast forward 20 years, and Australia’s skills shortages are worse than ever, the nation’s productivity stinks, and there are chronic shortages of homes, infrastructure, and services.

On nearly every measure, Australia’s mass immigration policy has been a failure, and Australian living standards have declined.

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Yet, here we have the housing and construction industries arguing for more immigration under the veil of labour shortages. The situation is laughable.

Even the Big Australia boosters are struggling to maintain the façade.

First, we witnessed current and former NSW political leaders – Chris Minns, Mark Speakman, and Domonic Perrottet – pivot against mass immigration, noting that it is wrecking Sydney.

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Now we have The SMH, which has long pumped Big Australia migration propaganda, having second thoughts:

Glass Pyramid Tweet

“A long-running housing shortage has become acute. We have priced a generation out of the ability to buy a home. It’s a grave national failure”, The SMH’s political editor, Peter Hartcher, wrote over the weekend.

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The SMH even published an article stating that it is not racist to want lower immigration—a massive change in rhetoric from an outlet that always loved to play the racism card:

The fact remains that the Albanese government has jumped the shark on immigration, and the mainstream media can no longer ignore the policy idiocy.

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A tipping point has been reached whereby Australians find migration policy unconscionable amid an unprecedented rental crisis.

Nearly everybody knows somebody impacted by the rental crisis, and it is making their blood boil.

Nobody voted for a Big Australia and nearly every opinion poll shows that the majority of Australians are opposed.

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It is time for our political class to take notice.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.