If the mining boom is increasing the wages throughout the economy, I can't see how professionals would not also be benefiting.
Concentrating money in the subsector not deemed "professionals". Hence there is an increase in BCW incomes relative to "professional" incomes.
MW
The higher dollar is hurting our employment situation.
Reduced employment opportunities and lower wages is hitting the wider middle classes;
and that is the big one that will impact more and more on property prices.
In the long term, the main implication of an appreciating exchange rate is structural change within the Australian economy. Since a strong Australian dollar means that Australian exports become more expensive, export industries will effectively become less competitive in the world market. Export industries other than mining, including farming, manufacturing and tourism, are likely to be impacted by this. Those that cannot compete under the high exchange rate will contract. This results in the release of labour and capital previously utilised by inefficient businesses, which will be reallocated to the expanding mining industry. The reallocation of resources to an area of production in which they are being used more efficiently results in higher productivity growth and increased economic growth. This in turn leads to higher real incomes for Australians, and higher living standards.
Exactly and the reason why wages of keyboard tappers in the city high rises remain relatively stagnant. Big company stumps up billions and the construction firms (including engineering pros.) are hired. Flow on is directly to the local community and indirectly to the government via taxes for distribution. House construction and existing house prices rise proportionately to incomes in the local area. Unskilled people may find it tough due to increased rents and living costs.Because their company does not service the mining industry nor service any industry which does.
So you don't believe the cash generated by mining flows through the economy,
Where do the share holders live that spend the dividends,
Where does the state governments spend their royalties,
where does the federal goverment spend the company tax and income tax,
where do the fly in fly out mine workers spend their pay check,
There are far to many trickle down areas to mention, For example cash from a mine in western NSW, is probably funding school teachers, police officers and road workers in sydney, and that flows on and on,
Exactly and the reason why wages of keyboard tappers in the city high rises remain relatively stagnant. Big company stumps up billions and the construction firms (including engineering pros.) are hired. Flow on is directly to the local community and indirectly to the government via taxes for distribution. House construction and existing house prices rise proportionately to incomes in the local area. Unskilled people may find it tough due to increased rents and living costs.
Here is from the RBA.
You just have to roll with the punches.
We are in the middle of a mining and energy construction boom but if you are not directly in touch with it then the personal returns for effort obviously won't be as great.Who exactly is the local community ?
Tradies ? Sure, they earn a bit more than they used to and some of them got rich (likely through hard work) but I'm pretty sure I don't want to be one any time soon.
Trickle down economics and flow ons from a quantiative perspective are largely pseudo scientific mythology.
If you can show me actual emperical evidence that wealth concentration leads to flow ons which result in economic growth then I might listen. However, I'd need time to critically examine the articles so I doubt we'd be settling this over the internet.
Anecdotaly, Europe and the US and what I've seen with my own two eyes in Australia indicate that the mining boom doesn't "flow on" and the rest of the country was largely better off before the silly boom.
All you need to see is that 43% of mining revenues enter government coffers, They are then spent ( Or wasted however you like to put it ) on things in ever corner of the country, how is this not trickle down,
Here is from the RBA.
You just have to roll with the punches.
Who exactly is the local community ?
Tradies ? Sure, they earn a bit more than they used to and some of them got rich (likely through hard work) but I'm pretty sure I don't want to be one any time soon.
That basically leaves office workers and the un-skilled.
Engineers ? Because we all had 4-6 year of mummy and daddy looking after us while we studied an intensive course and graduated on a whopping 55k a year. Plus if we all went and got engineering degree's we'd all be unemployed or earning a crap wage.
Why not just say that doctors make good money, so the economy must be doing fine. (also see above regarding mummy and daddy).
It is not that I am jealous (which I am but that is not the reason) it is just that it really irks me when people think that going off and getting some fancy degree is the solution to all problems.
Yeah, the unskilled suffer, which funnily enough is like, I dunno, like the majority of the population who buys stuff and pays taxes. So what you're really saying is the majority of people suffer, so the economy tanks, so nothing flows on, but people in my social circle are all well off and they do okay, so it must all flow on nicely.
im a sparky - and make alot more money than most people would think, and work no more hours than a key basher. there is plenty of work going in brissy. not to mention commonwealth games, thats work for years for us construction workers both in brisbane and goldy. there is huge flow on affects. thanks blighe, or maybe gillard - not sure who funds the infrastructure. either way we're winning
to stay on topic - house prices to fall
Commorn there Pal, you need to come up with more substance than that to hold the property market up.
It is not that I am jealous (which I am but that is not the reason) it is just that it really irks me when people think that going off and getting some fancy degree is the solution to all problems.
Yeah, the unskilled suffer, which funnily enough is like, I dunno, like the majority of the population who buys stuff and pays taxes. So what you're really saying is the majority of people suffer, so the economy tanks, so nothing flows on, but people in my social circle are all well off and they do okay, so it must all flow on nicely.
I told you above. I'm not here to prove that I am right to you. I know I am right and will one day profit from it.
Never mind that most of the country are NOT electricians working in commercial construction getting 110k a year base, plus every second friday off, family picnic day, an allowance if it is under 20 degrees and allowance if it is 10am an allowance for going to work....
Most people earn an average crappy wage which is further reduced by inflation and increased housing prices. That'll start to cause some of those key b ashers to lose jobs soon and then there is no one to buy houses or pay taxes to fund constrsuction.
biz.thestar.com.my said:OCBC Bank offers loans to buy properties in Australia:
Head of Consumer Financial Services, Charles Sik said the introduction of the facility, OCBC Overseas Property Financing-Australia, follows the success of a similar scheme for London properties launched six month ago.
"Like the earlier scheme, customers will be able to take advantage of the fact that this is also a ringgit-based loan, hence mitigating the effects of fluctuating foreign exchange risks,"
As I said " me and my circle of privilleged friends are doing well out of mining so the rest of the country must also be "
Never mind that most of the country are NOT electricians working in commercial construction getting 110k a year base, plus every second friday off, family picnic day, an allowance if it is under 20 degrees and allowance if it is 10am an allowance for going to work....
Most people earn an average crappy wage which is further reduced by inflation and increased housing prices. That'll start to cause some of those key b ashers to lose jobs soon and then there is no one to buy houses or pay taxes to fund constrsuction.
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