I'm feeling lazy this morning, and rather than 'review' an article, I would like to recommend that you read it for yourselves, if you haven't already. It's the one recommended by Graham in his email this morning, from 'Henry Thornton' entitled, 'Australia's economic situation'. Scary but, in my view, much more realistic than the polly waffle from the PM, the Treasurer and all politicians hiding the truth from us. http://www.henrythornton.com/single-post/2020/02/23/Australias-economic-situation

A little something from economist, Peter Smith, in his Quadrant Online article , 'Thoughts on Australia’s Own Ex-Car':

"Sadly, and inexplicably, in my view, we don’t make cars anymore. Nor do we any longer make electrical goods or not many; nor clothes or, again, not many of them. We have outsourced most of our manufacturing and all of the great variety of skills it entails, and all the small businesses it supports, and all the richness it brings to our national culture. And if you think that is a good thing you are no doubt one of those libertarian types who believe in “free trade” whatever the cost to national life. Cheap stuff is apparently the sine qua non of our existence."

While the Maynard Keynes fans rabbit on about low interest rates making for more spending to help the economy, Smith says that "The production side of the national accounts is where economists should be looking; not the spending side". Consumer spending is largely offset by imports.

"Making a car adds to our wealth. Buying a car does not."

We are referred to an article by Greg Sheridan the loss of car manufacturing -

"“This disaster,” ….. “was brought about by a combination of green costs on industry, ludicrous power prices and grievously misplaced free-market economic nostrums. The net result was a catastrophic loss of capacity, complexity and competence across our economy, a dumbing-down of society, a needless limitation on our potential and a serious dent in our national security.”

Sheridan argues that we didn't lose Holden because of external circumstances, but because of "... a conscious choice born of lack of ambition and lack of will.” There could be something in that. Australian governments to date haven't been up to the challenge of anything that's not easy. The current one has proved to be a master of sweeping stuff under the rug.

So, what else is wrong with the Australian economy?

Low consumer spending

Hesitant business investment

Global slowdown

Fall in employment. Up to 23% youth unemployment in some areas

PM and Treasurer ignoring the herd of elephants in their 'all's well' speeches

Unnecessary cuts to interest rates reigniting the house price boom

Slowdown in exports

Crowded roads

Insufficient government services

Oversupply of low quality high rise flats. Many with illegal, flammable cladding that will have to be fixed at some stage.

Increasing demand for elderly and disabled care

Rising costs of the absurd decision to convert a French nuclear submarine to diesel, which will be obsolete before the first one is finished.

Financial expert, Roger Gottliebsen, says that we are in for a downtown, and asks what is planned to deal with it.

Morrison: "Josh. What's the plan?"
Treasure: "What's a plan?"

Hey ttbn,
Thanks for posting the article.
Australia's situation doesn't look very good going forward.

I found a youtube channel a few days back that seems to have a focus on the Australian economy.

It's called 'In the Interests of the People'
I'm not sure how good the content is, as I haven't yet watched any of the videos, but it looks like it might be alright.
Here's a link to all the channels video content.
http://www.youtube.com/channel/UCzwmB2wn8Slp3hko2Gpj2iA/videos

AC,

Thanks for the videos.