2 speed economy

Old Mar 11th 2012, 2:45 pm
  #1  
You sip .... I glug !!!
Thread Starter
 
Vegemite Kids's Avatar
 
Joined: Nov 2003
Location: Over the hill!
Posts: 2,790
Vegemite Kids has a reputation beyond reputeVegemite Kids has a reputation beyond reputeVegemite Kids has a reputation beyond reputeVegemite Kids has a reputation beyond reputeVegemite Kids has a reputation beyond reputeVegemite Kids has a reputation beyond reputeVegemite Kids has a reputation beyond reputeVegemite Kids has a reputation beyond reputeVegemite Kids has a reputation beyond reputeVegemite Kids has a reputation beyond reputeVegemite Kids has a reputation beyond repute
Default 2 speed economy

The resources boom has prompted much discussion of Australia having become a two-speed economy.

Is this a new phenomenon or just another part of the usual cycle?

and if its new, how long do you think it will last?
Vegemite Kids is offline  
Old Mar 11th 2012, 9:11 pm
  #2  
Daffyd Duck
 
commonwealth's Avatar
 
Joined: Jul 2008
Location: Paradise
Posts: 5,636
commonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond repute
Default Re: 2 speed economy

It's part of the usual cycle that everyone has to adapt to. It's called free market capitalism.
commonwealth is offline  
Old Mar 11th 2012, 9:16 pm
  #3  
Daffyd Duck
 
commonwealth's Avatar
 
Joined: Jul 2008
Location: Paradise
Posts: 5,636
commonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond repute
Default Re: 2 speed economy

It's not a new phenomenon. It's been going on for years. There's even a Treasury paper in 2008 on this matter but the Gov't and RBA refuse to intervene in the forex market.

http://www.treasury.gov.au/documents...%20economy.htm
commonwealth is offline  
Old Mar 11th 2012, 10:01 pm
  #4  
Forum Regular
 
Joined: Feb 2012
Posts: 42
nandnor has a spectacular aura aboutnandnor has a spectacular aura aboutnandnor has a spectacular aura about
Default Re: 2 speed economy

only cultures with a strong anti-success mentality like the "law of jonte" in nordic countries are what can achieve relative income equality.
nandnor is offline  
Old Mar 11th 2012, 10:02 pm
  #5  
Daffyd Duck
 
commonwealth's Avatar
 
Joined: Jul 2008
Location: Paradise
Posts: 5,636
commonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond repute
Default Re: 2 speed economy

Originally Posted by nandnor
only cultures with a strong anti-success mentality like the "law of jonte" in nordic countries are what can achieve relative income equality.
Is this similar to Tall Poppy Syndrome?
commonwealth is offline  
Old Mar 11th 2012, 10:08 pm
  #6  
Daffyd Duck
 
commonwealth's Avatar
 
Joined: Jul 2008
Location: Paradise
Posts: 5,636
commonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond repute
Default Re: 2 speed economy

Whats also happening at the moment is that many households are deleveraging and increasing their savings to 20-year highs instead of pumping the cash into the economy. it's not as if the GDP and employment were in a freefall.
commonwealth is offline  
Old Mar 12th 2012, 12:34 am
  #7  
snɐןɔ ʎʇıuɐs
 
GarryP's Avatar
 
Joined: Nov 2006
Posts: 6,558
GarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond repute
Default Re: 2 speed economy

More commonly called "The Dutch Disease" when connected with resource exploitation. Lasts as long as the resource boom does, and takes carefully management if you are not to derail your whole economy. Needless to say, not being well managed in Oz.

http://en.wikipedia.org/wiki/Dutch_disease
GarryP is offline  
Old Mar 12th 2012, 12:37 am
  #8  
Daffyd Duck
 
commonwealth's Avatar
 
Joined: Jul 2008
Location: Paradise
Posts: 5,636
commonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond repute
Default Re: 2 speed economy

we need more mining tax!!!
commonwealth is offline  
Old Mar 12th 2012, 12:48 am
  #9  
Daffyd Duck
 
commonwealth's Avatar
 
Joined: Jul 2008
Location: Paradise
Posts: 5,636
commonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond repute
Default Re: 2 speed economy

Originally Posted by GarryP
Needless to say, not being well managed in Oz.
Because?
commonwealth is offline  
Old Mar 12th 2012, 12:58 am
  #10  
snɐןɔ ʎʇıuɐs
 
GarryP's Avatar
 
Joined: Nov 2006
Posts: 6,558
GarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond reputeGarryP has a reputation beyond repute
Default Re: 2 speed economy

Originally Posted by commonwealth
Because?
The money is allowed to unbalance the economy, kinda obviously.

Best approach is not to allow mining companies to make a mint off it, but to put most of the wealth generated into a sovereign wealth fund, investing slowly into other industries within the country and bringing them to a world competitive level.
GarryP is offline  
Old Mar 12th 2012, 1:17 am
  #11  
Lost in BE Cyberspace
 
Joined: Oct 2005
Location: Hill overlooking the SE Melbourne suburbs
Posts: 16,622
BadgeIsBack has a reputation beyond reputeBadgeIsBack has a reputation beyond reputeBadgeIsBack has a reputation beyond reputeBadgeIsBack has a reputation beyond reputeBadgeIsBack has a reputation beyond reputeBadgeIsBack has a reputation beyond reputeBadgeIsBack has a reputation beyond reputeBadgeIsBack has a reputation beyond reputeBadgeIsBack has a reputation beyond reputeBadgeIsBack has a reputation beyond reputeBadgeIsBack has a reputation beyond repute
Default Re: 2 speed economy

The 2 speed economy does not impress me.

Not everyone works in mining..there are millions elsewhere...

But to that end...I secured myself a mining job... based in Melbourne. Not planned, luck had a big part.
BadgeIsBack is offline  
Old Mar 12th 2012, 1:22 am
  #12  
BE Enthusiast
 
mulben's Avatar
 
Joined: May 2008
Location: Perth
Posts: 838
mulben has a reputation beyond reputemulben has a reputation beyond reputemulben has a reputation beyond reputemulben has a reputation beyond reputemulben has a reputation beyond reputemulben has a reputation beyond reputemulben has a reputation beyond reputemulben has a reputation beyond reputemulben has a reputation beyond reputemulben has a reputation beyond reputemulben has a reputation beyond repute
Default Re: 2 speed economy

Originally Posted by GarryP
The money is allowed to unbalance the economy, kinda obviously.

Best approach is not to allow mining companies to make a mint off it, but to put most of the wealth generated into a sovereign wealth fund, investing slowly into other industries within the country and bringing them to a world competitive level.
Only problem with this is Australia is a confederation of States , the mineral wealth still lies with the States not the Commonwealth Govt. ( the resource rent tax debacle will eventually have to go to the High Court if the States keep getting shafted )
mulben is offline  
Old Mar 12th 2012, 1:52 am
  #13  
Daffyd Duck
 
commonwealth's Avatar
 
Joined: Jul 2008
Location: Paradise
Posts: 5,636
commonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond reputecommonwealth has a reputation beyond repute
Default Re: 2 speed economy

Sovereign wealth fund? LoL.
commonwealth is offline  
Old Mar 12th 2012, 2:00 am
  #14  
BE Forum Addict
 
Joined: Jan 2006
Location: Perth, WA
Posts: 1,376
hoofie2002 has a reputation beyond reputehoofie2002 has a reputation beyond reputehoofie2002 has a reputation beyond reputehoofie2002 has a reputation beyond reputehoofie2002 has a reputation beyond reputehoofie2002 has a reputation beyond reputehoofie2002 has a reputation beyond reputehoofie2002 has a reputation beyond reputehoofie2002 has a reputation beyond reputehoofie2002 has a reputation beyond reputehoofie2002 has a reputation beyond repute
Default Re: 2 speed economy

Originally Posted by commonwealth
Sovereign wealth fund? LoL.
We've already got one - Future Fund.
hoofie2002 is offline  
Old Mar 12th 2012, 2:15 am
  #15  
BE Enthusiast
 
DC10's Avatar
 
Joined: Jun 2011
Location: Other side of the Westgate
Posts: 654
DC10 is a splendid one to beholdDC10 is a splendid one to beholdDC10 is a splendid one to beholdDC10 is a splendid one to beholdDC10 is a splendid one to beholdDC10 is a splendid one to beholdDC10 is a splendid one to beholdDC10 is a splendid one to beholdDC10 is a splendid one to beholdDC10 is a splendid one to beholdDC10 is a splendid one to behold
Default Re: 2 speed economy

It is two speed in a geographical, industry and government sense.

WA and QLD = good geographically, Mining = good industry, Government = federal ok, states and municipals heading for big trouble.

We are fortunate that Australian governments have had the good sense to legislate and build solid super/pension funds (contrast with UK), to run solid surpluses during good times without magic accountancy in the form of public-private shams (contrast with UK) and not to allow the entire country to become as dependent on an industry as risky as financials (contrast with UK).
DC10 is offline  

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.