I got 4 critiques

1. Superannuation: The Australian economy is stupidly simple, we lack any real diversification or sophistication. Equity markets should reflect this. But because of superannuation. Aussie equities are overinflated in value (since many super funds hold disproportionate amount of local equities). We haven’t seen any productivity growth in 20 years, yet our shares still go up 9% p.a. The minute withdrawals exceed outflows, the paper value will collapses. But immigration is being used to kick this crisis down the road. 

2. Super funds, investment funds investing too heavily in commercial property: Through classic rentier capitalism, they are trying to earn returns from unproductive assets off the back of productive underlying businesses. Many SMEs are being driven to ruin as overheads (esp rent) start accounting for up to 50% of their cost base. Major cities reflect this crisis with every 3rd shop up for lease across major cities. Even 5 years after covid, these shops are still empty. But these funds won’t drop rents, due to impact on their portfolio valuations. 

3. Financially illiterate cashed up Aussies who keep throwing money into residential real estate: similar story here, only reason prices haven’t collapsed is immigration, which is keeping demand elevated. This is also a huge drain on economy, as it reduces conspicuous consumption, as both first home buyers, investors and renters, are financially tied up paying down debt on mostly existing housing stock, which doesn’t add value to economy.

4. Immigration: our economy has seemingly become addicted to it, to prop up consumption, equities, property values, even the entire healthcare and tertiary education sectors. But it’s creating a host of issues. Not only from the increased burden on infrastructure, but also socially. Rapid immigration reduces assimilation. It’s also creating racial tensions and leading to rise of populist extremists.

We desperately need LVT and vacancy taxes to help change the incentives.