Australia's entire economy is built on housing, and operates on a "myth" that we can keep generating wealth by constantly inflating housing prices, argues the head of Australia's largest super fund.
Paul Schroder, the chief executive of AustralianSuper, has issued a stark warning that our nation must rethink its over-reliance on real estate.
He said he's calling out the "central truth" that Australia spends way too much on housing and "not anywhere near enough" on productive investment.
Indeed i've been saying that since the 1990s and yet here we are.
He said many Australians say they want improved housing affordability and lower house prices but it's "nonsense" to expect that those things will occur under our current policy settings, because the "entire construct of the Australian economy" is embedded in the housing mortgage book.
Unless there's a volte-face by voters towards The Greens, everything remains the same BUT gets worse
"A dwelling-house, as such, contributes nothing to the revenue of its inhabitants". - Adam Smith - The Wealth of Nations
>This disposition to admire, and almost to worship, the rich and the powerful, and to despise, or, at least, to neglect persons of poor and mean condition, though necessary both to establish and to maintain the distinction of ranks and the order of society, is, at the same time, the great and most universal cause of the corruption of our moral sentiments - Adam Smith
This is probably his most focused work on Australian housing. I think it was turned into a book as well.
Alan Kohler, The Great Divide Australia's Housing Mess and How to Fix It - Quarterly Essay
His podcast is good as well, he and Stephen Mayne tend to have some interesting conversations. Thompson, the other host is a great case study in everything wrong with commercial media journalists.
Money Café - Podcast - Intelligent Investor
Neat! Thank you