According to Khalil Menaf Hegarty, an Australian dollar is worth around 65 cents. I won’t do a double withdrawal either:
“There are a range of labor-related economic problems in Australia that policymakers appear unable to address coherently.
The first to stand, this is a very good summary of some key national indicators regarding the per capita recession in Australia.
The story here is a good entry point into what’s happening on the ground, but I’ll try to summarize.
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- Left-wing state governments have embarked on large infrastructure projects (and require large public debt);
- These projects require minimum wage requirements that are actually approved by construction unions;
- Costs and wages tend to explode for these reasons (and I don’t want to get into the public debt debate here);
- As noted in the article, the salary demands are quite significant. (240,000 AUD = approximately 160,000 USD)
At the same time:
The situation may be similar to that in Canada (according to your April column), but the problem may be more acute because we do not have access to the American labor market in the same way.
So my questions are: what is wrong with the Australian economy? Is this a precedent? What would you do about it?
TC again: Maybe we need new and better models for this kind of situation!
