Australian Economy

There is nothing like a new fashion among the elites.

Via Domainfax: Unions, business and the federal Parliament should come together and strike a “radical” grand bargain that would deliver a much-needed pay rise for ordinary Australians, Labor leader Bill Shorten says.

Cross-posted from The Conversation: A Senate committee has finally handed down a report on the Fair Work Commission’s decision to reduce Sunday penalty rates for workers in a range of service industries.

Hooray!

From The Kouk: Much is being made of the record level of household debt in Australia.

By Leith van Onselen Ever since the 7-Eleven migrant worker scandal broke in 2015, there has been a regular flow of stories emerging about the systemic abuse of Australia’s various migrant worker programs.

The NAB survey is out and held up nicely over September: Business conditions remained very strong in September, with the business conditions index holding steady at +14 index points – well above the long-run average (+5).

By Leith van Onselen Former Labor minister turned economic consultant, Craig Emerson, is the latest to roast the Australian economy, declaring it a “house of cards”.

Via John Quiggin at The Guardian: Socialism is back, much to the chagrin of those who declared it dead and buried at the “end of history” in the 1990s.

By Leith van Onselen With Melbourne’s population surging by an insane 556,000 in the five years to 2016: And with Melbourne’s population projected to explode by 97,000 people a year to 8 million mid-century: The Victorian Government has been forced to resort to creative measures to ease congestion, like new sardine configuration trains.

Cross-posted from The Conversation: Do higher profits necessarily lead to higher wages?

By Gareth Aird, senior economist at CBA: Key Points: Electricity prices spiked in Q3 2017 and will make a material contribution to the headline CPI.

It’s amusing to watch those most responsible for Australian wages destruction step up their campaign to have it fixed.

By Leith van Onselen With NSW’s (read Sydney’s) population growing at a break-neck pace (see below chart), last month it was revealed that there was a revolt underway from within the NSW Liberal Party against the federal government’s mass immigration program and over-development across Sydney (watch video above).

It was a beating for Australia not seen before outside of MB.

It’s the great white hope of the RBA. That non-mining business investment will ride to the economic rescue next year (and every year for the past five despite the no-show).

Via Morgan Stanley which has just completed yet another survey of Australian households: Income growth has not recovered, ‘cost of living’ inflation is re-accelerating and ‘macro-prudential’-related tightening of credit conditions is extending from housing into consumer finance.

Via The Economist: Mr [Dick] Smith is also right about the decline in living standards, albeit only recently.

Via Big Sleazy today:  Commonwealth Bank chief executive Ian Narev called on policymakers to do something about housing affordability and stagnant wage growth.

We like Chris Kohler’s attempts to bring rationality to the housing bubble.