Yep I got a yellow card and contacted them and apologised. I have one tradie son and have forgotten where the line is LOL - no honestly did not realize that was an issue like that.
Productivity is a measurement, just as kingpins states about GDP.
Funny thing you see commodities rise in price and so a lower grade modest margin mine opens - even a big one - and the productivity is 'lower'. That is even if it employs hundreds or thousands of workers that add to consumption and private investment, revenue for government etc. SO with the mine open the productivity is lowered. OK that is how it works I am just examining.
Then prices in the commodity fall and the mine closes leaving only high grade higher margin mines in operation - that raises productivity. Less workers and less activity for GDP and less prosperity.
GDP is a measure of economic activity and when the 'measure' gets larger we call that 'growth'. When it shrinks we call that a contraction. GDP is a strange animal that double counts and does not account for debt or future liability.
So we had a $47.7B deficit (sorry no "net debt" on this number just making a point as I am sure the net debt was large anyway) in the 2010 - 11 FY, which was 3.4% of GDP. GDP growth was less than that so we borrowed more than we grew - so did we really grow? Did the tree really fall in the forest grasshopper?
Depends on the quality of the debt and by that I mean did we gain in terms of 'capacity to produce' and is that tangible. Seeing as some portions of GDP have a duplication effect the growth is dubious in real terms - but not as GDP growth where it is real.
I believe Roubini would be closer to the mark than most. The capital flows out of Spain and Italy indicate the contagion cat is long out of the bag. One political union for Europe - dream on. A fiscal union - is that too late now? The flaws were flagged early and yet the experiment rolled on anyway. Europe will soon become so desperate that anything is possible - extreme duress is like that.
Excellent statements / post by kingpins - agreed. The NBN can assist greatly however the life of the infrastructure at 15 years is a problem, so was the process and planning. It is great for Singapore and small countries but cable of any kind does not make sense for a country as large as Australia IMO. This is not my area of expertise or intense interest so I stay out of the debate on the whole.
benson1610 - glad you are contributing, gas a winner and essential IMO too - and profit IS more important than GDP. I don't mind some debt but it has to be spent on capacity to produce so you get a return.
