Originally Posted by
GoldfishMan
Governments and economists will always expect small but constant GDP growth because, believe it or not, that is actually the norm. It's all because of population growth... Under normal circumstances, you'd expect at least some growth in your population, be it from births, migration, etc. If the population grows but GDP does not grow accordingly, that is a big problem.
Now, there is another metric called GDP per capita, meaning how much of GDP is attributed to a single person in the population. If you google it, Australia's GDP per capita has actually been DECLINING since 2018.
However, overall GDP, the one currently making news headlines, was still rising until now.
So what does that mean? It means that Australia's economy, since at least 2018, has largely been supported by population growth, specifically from NOM (net overseas migration), not from wage growth or inflation.
Once COVID turned the immigration tap off, we can see the true picture: left on its own, without the NOM to support it, Australia is basically fucked.
Almost all of our industry sectors that were in good shape before the COVID were all dependent on NOM: property, tourism, education, hospitality, gaming, and even retail to a certain degree. The only one not dependent was mining, and even in that regard we're shooting ourselves in the foot by picking fights with China!
We also lack the industries that could help us move forward without NOM. Manufacturing is dead, for example. Agri, maybe ok, but that is on the same boat as mining...
Stop fighting with China, stupid. That's like the big bro USA telling us to eat shit and we actually do it!
Reply With Quote
Posting Permissions
