Unconventional Economist

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Employers choosing migrants over older Australians

The ABC has published a report bemoaning that “ageism is rife in Australian workplaces”, where many older Australians are being shunned for jobs in favour of younger workers: A recent survey of 5000 people over 50 by Australian Seniors found many older people want to participate in the workforce, but they are not being given opportunities: Eighty-nine

9

Links 19 October 2021

Global Macro / Markets / Investing: Is the world economy entering a wage-price spiral? – Economist The Layman’s Guide to Financial Deceit – Insider Finance The Great Supply-Chain Massacre – Project Syndicate Inequality is an urban affair, and it’s due to new tech – VOX Startups are betting on a psychedelic gold rush – VOX

6

Brisbane hits 20% property price growth

Brisbane today became the second major capital after Sydney to hit 20% dwelling value growth in 2020, according to CoreLogic’s daily index: Brisbane is now also the strongest major property market, recording 6.3% quarterly price growth: My view is that Brisbane’s housing market will outperform over the next decade due to its superior affordability against

0

CBUS admits lifting super guarantee lowers wages

Industry superannuation fund Cbus is seeking to have the 111 employees in its investment management division ‘carved out’ from a proposed new enterprise agreement and placed on a separate employment contract. The terms of the new contract indicate that workers would see their take-home pay reduced in the event of any increase in the superannuation

6

Australian universities are the kings of wage theft

The pandemic has brought to light the university sector’s ‘dirty little secret’; namely, its reliance on staff with insecure work contracts. Around 70% of the sector’s staff are on such contracts, either part-time or casual, while the underpayment of staff is widespread. The Fair Work Ombudsman (FWO) has investigated 14 universities over potential underpayment of

12

How business lobbyists drove $40b in JobKeeper waste

Callum Foote and Michael West have made explosive allegations that the business lobby pressured the federal government not to amend JobKeeper when it was discovered by Treasury three months in that billions was being paid to companies with neutral or rising turnover. Accordingly, the federal government kept the fiscal tap wide open, showering businesses with

6

Victoria’s COVID cases rise, NSW’s cases fall

Victoria has recorded another 1903 locally acquired COVID cases and seven deaths: Reported yesterday: 1,903 new local cases and 0 cases acquired overseas. – 32,405 vaccines administered – 69,825 test results received – Sadly, 7 people with COVID-19 have died More later: https://t.co/OCCFTAchah#COVID19Vic #COVID19VicData pic.twitter.com/Z3nM6bpAQv — VicGovDH (@VicGovDH) October 17, 2021 By comparison, NSW recorded

1

Auction markets boom again

Auction clearance rates were universally strong over the weekend despite massive volumes. The national preliminary clearance rate was 81.8%, down only slightly from the 83.3% recorded the prior weekend. This was off a whopping 2,920 volumes, up from the prior weekend’s 2,727. Sydney’s preliminary clearance rate ran hot at 85.0% versus 83.2% the prior weekend,

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Attention Phil Coorey: the mainstream, not fringe, wants lower immigration

The AFR’s political editor Phil Coorey on Friday claimed fringe elements on the left and right of the political spectrum are the ones pushing back against NSW Premier Dominic Perrottet’s call for a massive increase in Australia’s immigration intake to more than 400,000 people a year: [NSW] recommended a doubling of the pre-pandemic immigration rate

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Links 18 October 2021

Global Macro / Markets / Investing: The booming business of knitting together the world’s electricity grids – The Economist The Great Supply-Chain Massacre by Diane Coyle – Project Syndicate Startups are betting on a psychedelic gold rush – VOX Inequality is an urban affair, and it’s due to new tech – VOX Is Fed’s Inflation

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Victoria’s COVID outbreak dwarfs NSW

Victoria has recorded 1838 locally acquired COVID cases and seven deaths over the past 24 hours: Reported yesterday: 1,838 new local cases and 0 cases acquired overseas. – 38,977 vaccines administered – 73,501 test results received – Sadly, 7 people with COVID-19 have died More later: https://t.co/OCCFTAchah#COVID19Vic #COVID19VicData pic.twitter.com/5Agn4U5kx2 — VicGovDH (@VicGovDH) October 16, 2021

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COVID update: Cases fall across VIC and NSW

Victoria has recorded another 1993 locally acquired COVID cases and seven deaths over the past 24 hours: Reported yesterday: 1,993 new local cases and 0 cases acquired overseas. – 40,386 vaccines administered – 79,214 test results received – Sadly, 7 people with COVID-19 have died More later: https://t.co/OCCFTAtS1P#COVID19Vic #COVID19VicData pic.twitter.com/kfkOaAUBOo — VicGovDH (@VicGovDH) October 15,

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Weekend Reading 16-17 October 2021

Global Macro / Markets / Investing: New Research from Groundwork Collaborative Shows Link Between Price Hikes, Monopoly, and Corporate Greed – Groundwork Collaborative The climate disaster is here – an interactive – The Guardian The Impact of Public Debt on Economic Growth – Cato High Inflation Is Here To Stay – Reason How natural disasters

2

Auction market booming

Australia’s auction market boomed last weekend, recording a final auction clearance rate of 80.2% (down from 83.2% the prior weekend) on significantly higher volumes (2,708 versus 1986): Australia’s final clearance rate is tracking close to its highest level since CoreLogic began tracking auctions in 2008: According to CoreLogic: Auction volumes have been climbing over the

45

The Kouk: Perrottet’s 2 million migrants plan “horribly misguided”

Stephen Koukoulas (“The Kouk”) has done a terrific job tearing apart NSW Premier Dominic Perrottet’s plan to import 2 million migrants into Australia over five years, describing it as “horribly misguided”: To be frank, the proposal is a lazy, irresponsible and a horribly misguided recommendation that deserves to be shot down before significant damage is

2

CoreLogic: Affordability pressures creating pain for upgraders

By Eliza Owen, Head of Research Australia at CoreLogic Rapid growth in Australian housing values and rents over the past year has contributed to greater affordability pressures for households. ABS lending data shows first home buyer finance commitments have fallen -22.8% since January 2021, and rising rent prices have created housing stress for tenants, particularly

3

Australia’s youth smashed by lockdowns

Yesterday’s employment report from the Australian Bureau of Statistics (ABS) revealed that Australia’s youth – defined as those aged 16 to 24 – have been hit hard by lockdowns. Total youth jobs fell 81,300 in September, driven by an 83,600 reduction in part-time jobs, partly offset by a 2,300 increase in full-time jobs. Accordingly, youth

14

Wages surge across developed world on lower immigration

Wages are booming across the developed world, according to The Economist. Lower skilled workers, in particular, are benefitting from the collapse in immigration: Oxford Economics, a consultancy, finds that pay in the rich world is growing at a rate well north of its pre-pandemic average. The acceleration in compensation per employee across the OECD, a

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LVO destroys Perrottet’s immigration madness on Bolt Report

Last night I gave a live interview on The Bolt Report whereby I tore apart NSW Premier Dominic Perrottet’s brain dead plan to import 2 million migrants into Australia over five years – effectively adding an Adelaide, Canberra plus Hobart to Australia’s existing population: I was also quoted in News.com.au by Frank Chung: Leith van

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Victoria’s COVID cases surge, NSW’s plummet

Victoria has recorded another 2179 locally acquired COVID cases – the second highest daily tally on record – alongside six deaths: Reported yesterday: 2,179 new local cases and 0 cases acquired overseas. – 38,752 vaccines administered – 73,942 test results received – Sadly, 6 people with COVID-19 have died More later: https://t.co/OCCFTAtS1P#COVID19Vic #COVID19VicData pic.twitter.com/dQ8T9QNCPg —

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IA: Immigration needed to build infrastructure for migrants

Infrastructure Australia has released a new report lobbying for more skilled immigration to build the infrastructure needed to sustain a bigger population (caused by immigration): Infrastructure Australia chief executive Romilly Madew said more migration will be needed to fill the forecast shortfall of 105,000 infrastructure jobs. The report highlights “increasing risks for cost escalation and

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Links 15 October 2021

Global Macro / Markets / Investing: High Inflation Is Here To Stay – Reason How natural disasters benefit rich people but make the poor poorer – The Guardian A New Global Economic Consensus – Project Syndicate What is the social cost of carbon? What should the discount rate be when applied to future benefits from

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Buying a Sydney high-rise apartment is financial Russian Roulette

Seriously, who’d buy a Sydney high-rise apartment? On Monday, new research by the Strata Community Association NSW revealed that four in 10 new apartment buildings in NSW have serious defects. And yesterday, The SMH reported that an apartment tower in Sydney’s south-west came close to being evacuated after an engineer’s report warned that the building

6

Immigration negative before ponzi relaunch

Yesterday, the Australian Bureau of Statistics (ABS) released Overseas Arrivals and Departures data for August 2021, which suggests net migration into Australia remained firmly negative. There was a net 5,260 permanent & long-term departures in August, which followed July’s 3,130 net departures. Over the August quarter, there were 5,850 net permanent & long-term departures: Since

1

Record Australian property demand in September

Average views per listing on Realestate.com.au hit a record high in September, according to the latest PropTrack Housing Market Indicators Report: With limited stock on the market, views per listing hit record highs. The ongoing shortage of stock available for sale coupled with elevated search volumes on realestate.com.au resulted in record high interest from buyers