Worse before Better times

Originally posted by alonso: ↑

The Deloitte Access Economic report is a good example of the dismal science.

"Deloitte Access Economics is forecasting a "more promising" outlook for the second half of 2024 as cost of living pressures are expected to subside, but has highlighted the housing crisis as a "significant worry" while population growth outpaces dwelling completions.The latest Deloitte Access Economics Business Outlook forecasts real gross domestic product (GDP) growth of 1.7 per cent in 2024-25, although for the calendar year it will sit at just 1.3 per cent."Outside of the pandemic, that would be the weakest growth since the early 1990s recession," the report states."Cost of living pressures continue to crush household consumption, which grew by just 0.1 per cent in the final quarter of 2023."And even that level of growth was only made possible by Australia’s surging population. In per capita terms, household consumption fell 2.3 per cent over the year to December 2023."So why is the outlook more promising? The report authors point to the impacts of moderating inflation and expected interest rate cuts."Meanwhile, changes to the Stage 3 tax cuts and real wage growth will lift household budgets, paving the road for a recovery in consumer spending," the report states."Looking beyond 2024, investment in Australia’s energy transition is expected to boost construction activity and lift exports in the long run, underpinning a longer term growth strategy for the Australian economy."However, Deloitte Access Economics partner and report lead author Stephen Smith says the outlook for growth is clouded by fading business investment, a housing construction sector spinning its wheels, and a global environment that is uncertain at best."The case for lower interest rates is growing, but there is significant debate about the timing and extent of rate cuts. Our forecasts now include a first rate cut in November this year, based on an acknowledgement that a cautious RBA will likely want to see the September quarter inflation data, released in late October, before pulling the trigger," he says."

Box of tissues ready?. Read on...

https://www.businessnewsaustralia.com/articles/housing-disaster-to--get-quite-a-lot-worse-before-it-gets-better---says-deloitte-access-economics.html

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No one knows what to do really about the housing crisis and the inflation and cost of living crisis, but what it is doing is making the gap between the rich and poor more evident. Australia has a lot more people in it today than it did 50 years ago.

A house in Sydney Cost 79k as compared to know 1.7 million now which back then could be paid of by a single income and a good standard of living was attainable. bank loan interest rates were manageable, but now?

Monetary systems were set after the second World War to benefit the victors of the war, the US,Great Britain, Australia as war cleans out the financial systems as everything goes to the war effort. The only thing that ended the second world war was the atom bomb, a nuclear weapon.

The bomb didn't just destroy human life and Hiroshima, nuclear weapons have changed the path of all war, and in a way has stopped a lot of human death. But it also changed the future of economics and standards of living, Australia is a pretty safe place to live, it's a long way from any conflicts going on, and is at the bottom of the world sort of, out of the way.

Many have come here and made a good life style over a few generations, back when hard work was a good thing, still is i guess for some.

But it's when things cost too much, and standards of living decrease because of inflation that is out of control and has been getting more and more out of control over the last 50 years in a slow way, yet here we are, i don't think that interest rates will go down anytime soon, how can they with such high inflation, in fact i think if they came down lets say by 2% all of a sudden i think after a year they would go back up 4 % because inflation isn't going down it's just staying at a high level

A good example of this was when interest rates almost went to zero over the last 7 years, that was just crazy. I guess now all the money on loan was a good stimulus on paper. But it was credit and credit has to be paid back. But can it be paid back, probably not so, therefore it has to be paid back by the whole of taxpayers through cost of living and housing. When you see building companies that were considered to be strong as shutting up shop, it's a good indicator of heavy seas.

What an out of control beast of burden it has become to the lower class which is growing, i feel so sorry for people living in tent cities, unless you actually lived it you cannot understand the depressive nature of it and the mental and physical impact it has on families in particular.

I reckon the only way out of it is through taxation, Australia's taxation system i can see is changing, we live in an online world now everything can be accounted for through a digital identity, everything you have done over your life in regard to income and taxes is now identifiable at the push of a button virtually.

lets say if all the rich people who have made say a million dollars profit over a year had to pay 75% to tax, that would fill up the coffers pretty fast, but would kill the incentive to make money i guess, and it does sound a lot like communism doesn't it.

Who knows onwards into the mid 2020's, Remenber that song by Cher, if i could turn back time. if i could find a way, i'd keep those bank interest rates steady back then and you'd be able to survive today.