News
Friday Fodder (8/24)
Where the cost of living crisis is biting hardest; China's pivot from growth to security; AI is a marathon, not a sprint; why interest rates might stay higher for longer; and plenty more in this week's Fodder.
Justin Pyvis
Justin has a PhD in Economics and over 20 years of experience in applied economic, policy and investment analysis with the WA Treasury and AECOM in Perth, and Aletheia Capital in Hong Kong.
Industrial policy
It's a good thing we don't make cars any more
Chinese cars offer great value and affordability, but US automakers are lobbying for protection, just as they did with Japan in 70s. Fortunately, Australia's lack of auto manufacturing means that this time around, we can enjoy the full benefits of competition!
Tax
Death by a thousand links
Facebook leaving Australia shows that the media bargaining code backfired. The government misdiagnosed the problem and harmed consumers while benefiting the big media companies. It's time to cut our losses, accept that the code was a mistake, and focus on real solutions to support local media.
News
Friday Fodder (7/24)
Why you should ignore pundits, Google breaks its brain (or how to slowly ruin a good business), Australia's Workplace Gender Equality Agency released data that are about as useful as tits on a bull, and is Joe Biden too old?
Energy
A nuclear future for Australia?
Ditching coal is inevitable for net-zero, but is nuclear the answer? Maybe, maybe not. But what we need is an honest discussion about our energy future.
Environment
Bowen's taking us for a ride
Bowen's proposed vehicle emission rules rely on dodgy assumptions, restrict choice and raise prices while overstating the savings. On the list of things to do about carbon emissions and the cost of living, they are one of the most costly, inefficient options available.
News
Friday Fodder (6/24)
Are you being underpaid, how should we best mitigate carbon emissions (and how two prominent government advisors got it so wrong), why we shouldn't bail out the nickel industry, and what's the most important stock on Earth?
Monetary policy
How to lose a truck load of cash
My recent FOI showed that the RBA Board was warned about the risks of QE but appeared to ignore those concerns, ultimately leading to huge losses with minimal benefits. The fiscal cost alone looks to be well over $50 billion, or more than $5,500 per household – a massive policy blunder.
Entertainment
A Swift loss
Taylor Swift is in town, and so is government spin about the huge economic benefits she brings. But once you account for leakages and opportunity costs, the net impacts are probably negative. Enjoy the show, but don't buy the hype!
News
Friday Fodder (5/24)
Here are a few short takes for you to chew over on the weekend, from the week's happenings that probably didn't need a full post. 1. Stepped on by stamp duty Move over income tax, because the always-interesting folks at the e61 Institute released a note
Growth
The wealth of our working nation
Japan's "lost decades" of low growth are due to its declining working-age population, not necessarily failed policies. With aging populations, policymakers in developed nations such as Australia will need to focus on right metrics, not just GDP growth, to craft effective policies.
Population
How big is too big?
Dick Smith wants to cap Australia's population at 30 million over concerns about a lack of resources and housing costs. In doing so he falls for the 'lump of labour' fallacy, and fails Econ 101: it's poor planning, not immigrants, that erodes housing affordability in Australia.