These days, the outside world knows a Ponzi scheme when they see one.
A big contributor to Australia's cost structure is housing. The more than a decade-long housing boom provided a 'wealth' boost for many. But the creation of this wealth depends on a constant and growing flow of credit into the sector to maintain high prices.
Each new marginal borrower and buyer of property has a much higher household 'cost structure' than someone who bought 10 years ago. To pay for ridiculously priced property, people demand higher wages. To pay for higher wages, businesses increase their prices.
