Instead of relying on the property bubble pretending that our economy is strong, Australia needs real structural change in the way we grow our economy.Chinese money is creating this gigantic property bubble here and in other countries around the world but it is not doing us any favours.
We have gone mad building houses and apartment blocks, mainly for the new arrivals and Chinese investors, but this cannot go on indefinitely. Australia's earnings of of $1.6 trillion is nearly 70% from services rather then producing goods. John Hewson said recently that the entire country is basically sitting around serving each other cups of coffee and smashed avacado.
In the 1970's we really became a third world economy selling raw materials and food but left the industrial production slide. It was "she'll be right mate" but sooner rather than later there will be a massive adjustment and we will become just another banana republic as Paul Keating predicted.
Building houses is not enough, we need to enthusiastically develop our technolodgical skills and lift our sights to secure our future. No longer can we rely upon mining, for China is taking less and less resulting in revinue dropping significantly while costs continue to rise.
The old "she'll be right" attitude must change before it is too late.
We have previously pointed out that our governments have always used positive GDP growth as a measure to mislead us into thinking all is well, but the real measure is GDP "per capita" which is static or going backwards and restricting our salary and wages growth. So we are no better off today than we were 10 years ago.
The first step we need to take is to reduce our migrant intake back to the 70,000 pa we used to accept in the late 1990's and early 2000's, which will still meet our international obligations, and the second step is to put a stop to Chinese investment in housing and buying up our farmland and other assets.
Time to wake up Australia.......