I believe that the goverments pursuit of population inflation is the cause of the current speculation. I am a strong advocate of capitalism and technological development. I dont believe that any other system has a hope of improving living standards to the same extent, if at all, and there isnt a day that I dont think myself very fortunate to live in this country.
But capitalism implies risk taking. If you take away this risk you get rampant speculation, bubbles and busts. Population inflation has led to precisely this situation in real estate. With an extra 200,000 people pa ( http://www.abs.gov.au/Ausstats/[email protected]/Lookup/1647509EF7E25FAACA2568A900154B63 )to house and clothe and feed, even the vacant dwellings of a construcion surge will eventually find occupants. The downside is that the current speculators are profiting to the tune of declining living standards and environmental degradation. If you like, I believe that the current immigration policy (read population inflation) is encouraging parasitism, not capitalism. The government response to this has been to look for ways to cut water consumption and to otherwise minimise wastage. (Finding ways to cram more into the box rather than leaving it comfortably uncluttered.) Goverments are also great chanters of that idiotic mantra, 'Technology will save the day; it always has.'.
I ascribe to the view that Australia has an optimal carrying capacity commensurate with technological development and available resources. Migration has undoubtably been of great assistance in allowing that optimal level to be reached, but I believe that current water shortages and environmental degradation are good evidence that the optimum has probably been greatly exceeded.
Hopefully Australians will see the looming catastrope from the present course sooner rather than later.
You can read the opinions/research of people concerned by overpopulation at http://www.population.org.au/
