How we’re still stuck in a Berlin Wall mindsetEast and West Germany were the ultimate economic science experiments, a government controlled economy next to a free market, the free market emerging victorious. But is this black and white look at economics what got us into this GFC mess?
Business / Economy
RBA lifts growth forecasts as economy on the up and up
The Reserve Bank has lifted its growth forecasts for the Australian economy and made it clear that interest rates will rise as the economy resumes its expansion.
Why increased worker productivity is bad for the economy
Worker productivity in the US has jumped dramatically by 9.5% in the last quarter. Employees working harder for less hours, just what the boss wants in a recession, right? Except, morale is down, productivity isn’t sustainable and workers are simply covering their colleagues who’ve been fired.
We’re kidding if we think the GFC scars won’t last
Simon Nasht goes on a world tour of economic carnage caused by the global financial crisis, from Wall Street’s trading floor to abandoned factories in China. Where does the world go to from here?
Government has lowered expectations on labour market success
In its panic the government has over-stimulated the economy and that fiscal mistake is going to have adverse consequences, writes Sinclair Davidson.
It’s the leverage, stupid
Steve Keen may have lost his bet with Rory Robertson on house prices, but he’s still right on the fundamentals, he argues: the crisis would have occurred long ago and been far less severe if governments and central banks hadn’t attempted to rescue the system from its own follies.
Political economy: US Fed says we’re saved
The US Fed says economic activity has picked up… but household spending is sluggish, interest rates will remain the same, and the economy is still shedding jobs. No surprises here, says Henry Thornton.
15 podcasts that will make you richer
Business Pundit has compiled a list of 15 top podcasts on finance, investing, marketing and more, to help get to know money better and, hopefully, learn how to make a whole lot more of it.
Kohler: How the collapsing US$ will damage Copenhagen
For Australia, an international emissions trading scheme in Copenhagen may prove an economic disaster, thanks to a dropping US dollar a and rising Aussie dollar. It’s happening around the world and it’s making a Copenhagen deal unlikely.
Michael Moore’s Capitalism: the cage match
It’s bound to be one of the most controversial of the season’s cinematic offerings: Michael Moore’s Capitalism: a love story. But is it a muddied low-brow critique or the seminal turning point in the popular appreciation of a system past decay? You decide!
Political economy: In Australia’s recovery, the winner is Rudd
A strong economy will allow Kevin Rudd again to campaign as a fiscal conservative, as well as the messiah who protected Australia from world depression, correction, severe downturn, writes Henry Thornton.
Interest rate rise small change for mug punters
Yesterday’s interest rate rise was, in monetary terms, roughly what we spent yesterday per head losing on the Cup. And if we just offset the cost of all the hats and champagne with the lost working hours spent on office sweeps…
Forget mortgage holders, every rate rise hurts business
Why is the media so fixated on mortgage holders? More concerning is how much power the Big Four banks now hold over the economy, and how SMEs are struggling to get finance.
Where do economists go from here?
Even with all the great economic minds of the world, we didn’t avoid the global financial crisis. Stephanie Flanders speaks to some major economists about the way forward for world economies and the focus we need on behavioural economics.
Gittins: Have a flutter on the economy
If we can afford to gamble A$137 million on the Melbourne Cup, then we can afford to raise interest rates 0.25 percentage points, says Ross Gittins. Especially since we probably won’t see another rise until February.
Kelly: How next year will unfold for Wayne and Kevin
Avoiding a recession has become both a gift and a burden to the Rudd government, writes Paul Kelly. Expect a battle between managing the economy recovery and spending on big ticket election issues — climate change, health and households. Can Swan reign in spending?
Gottliebsen: The Australian dream is over
Yesterday’s rate rise, coupled with recent changed to Australia’s superannuation policy, locks us into a nation-changing situation: we will soon be a nation of renters, says Robert Gottliebsen.
RBA lifts rates, declares GFC dead
The Reserve Bank has lifted interest rates by 25 basis points to 3.50%. Get set for a slew of increases as Glenn Stevens lets the good times roll.
Reform the food industry — for the sake of the planet
The food industry’s solution of more choice increases profits, but does nothing for obesity. The more on offer, the more we buy, the more we waist and the more we waste, writes Dr Rosemary Stanton.
An inconvenient truth sobers thinking on weak state of US banking
Markets are not known for their consistency. Last night, the US market went up 148 points very quickly, then slid back into the red, only to close up 76 points.
Aussies, it seems, under Mr Market’s intoxicating spell
The ABS, Australian Property Monitors and RP Data are all indicating that Australian residential property prices are nearing or exceeding record levels, spurred by continued use of debt by many buyers to fund the great Australian dream.
Hartcher: Is Swan the anti-Keating?
Wayne Swan is acting a lot more modest over the Australian economy’s GFC rebound than Paul “the recession we had to have” Keating, writes Peter Hartcher. But it’s thanks to Keating and Peter Costello that we avoided further trouble
Throwing the switch to recovery
Today’s new economic forecast means the Federal Government will finally have to stop saying things like we’re “not out of the woods yet” or have “a long way to go” and shift its rhetoric into recovery mode.
Ask the economists: tomorrow’s RBA announcement
We asked the economists for their punt on the RBA’s interest rate announcement tomorrow, just ahead of the race that stops a nation. They say that the numbers will just keep going up…
Swan: we are “fair dinkum” about sticking to our fiscal strategy
Wayne Swan has unveiled a significant improvement in the Government’s fiscal position from next year, with this morning’s Mid-Year Economic Forecasts showing far higher economic growth and lower unemployment than the Budget forecast back in May.
