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Economic factors affecting the housing market : Comments
By Saul Eslake, published 19/3/2007Australian residential property prices have shown remarkable resilience despite the end of the boom.
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Our respective positions, though still distinct, are probably not as far apart as we initially thought. I don't advocate population growth or increased immigration for their own sake (although I'm not 'anti' them either; and I'm especially conscious that if those who were already living in Australia when my ancestors arrived here between 1838 and 1882 had sought to prevent their arrival, then I would not have had the privilege of growing up and living in this country; and so I am hesitant to deny that privilege to others who seek what my ancestors were granted).
And although I don't see anything wrong (and indeed a good deal to be gained) from digging up and selling minerals and energy to China, Japan and other countries - especially when they are willing to pay prices as high as they currently are - I also readily concede that aspects of our long-established patterns of economic growth may be environmentally unsustainable. My training as an economist leads me to the conclusion that the best way of dealing with this is to attach prices to the use of water, the emission of greenhouse gases and so forth which reflect their scarcity or environmental impact.
But I'm again approaching my word and per diem limits so any further thoughts on that subject will have to await another day.