Australia’s economic output is simply the sum of our profits, wages and rents — profits to businesses, wages to workers, and rents to land and natural resources.
We’ve taxed profits and wages—almost to a standstill—and undertaxed rents, to such a degree that most Australians and many foreigners are now into rent-seeking in Oz’s land.
Economists and politicians either don’t get it, or pretend they don’t get it.
Accordingly, Australian land prices have become a circus, and this fantasyland must end badly.
Negative-gearers and battlers overly-committed to big mortgages remain optimistic and hopeful, however.
That’s good, but quite unrealistic.
Like everywhere else, the Oz debt piper must be paid—but money that can’t be repaid won’t be repaid.
We face a big financial crunch.