Originally Posted by
GoldfishMan
I think Australia is in for a reckoning. It's like a perfect storm of everything coming together:
- biggest problem is immigration. Gov came up with this idea of bringing in 300k /year immigration back when jobs were booming. Now everywhere you look companies are slashing jobs and cutting budgets. The Gov, as always 10 steps behind the curve, does nothing to react.
- construction sector is tanking, meaning new housing is not going to be enough to meet the demand from the new immi. This is courtesy of the previous Gov and their build and Reno grants.
- our knight in shining armour China, itself looks wobbly thanks to their own RE sector tanking. The last time we needed help to keep the economy ticking along was during the GFC, and our exports to China saved us. Not this time!
The result of all this is going to be stagflation. That is, inflation keeps increasing while wages either stay the same or goes backwards. This is terrible and a huge setback for the country. If left unchecked we might find ourselves like Argentina, once a developed nation with everything going for it, now reduced to 3rd world status.
The Gov needs to react NOW and shut the immigration door before it is too late.
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